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Case ID: 4273 | Stocks | 04/11/2005
A class action has been filed against Rhodia S.A. (NYSE:RHA), certain of its officers and directors by stockholders who purchased the company's common stock between April 26, 2001 and March 23, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
According to a press release dated April 7, 2005, the complaint charges Rhodia and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Rhodia develops, manufactures and markets chemical products. Specifically, the complaint alleges that during the Class Period, defendants engaged in a scheme to overstate Rhodia's reported financial results by failing to record impairment on a timely basis in order to: (i) protect and enhance their executive positions and substantial compensation; (ii) raise EUR 1 billion in Notes in a private placement on May 28, 2003, as well as EUR 290 million in a private placement of Notes with American investors in 2001; and (iii) enhance the value of their personal Rhodia securities holdings and options. The true facts, which were known to the defendants during the Class Period but concealed from shareholders, were as follows: (i) Rhodia was carrying an overvalued asset on its books in the form of its ChiRex unit which was impaired and should have been written down in a timely fashion but was not; (ii) Rhodia failed to write down its deferred tax assets to recoverable values in 2002 and failed to do so in 2003 until the end of the year; (iii) the Company failed to properly report its outstanding debt; and (iv) the Company failed to include disclosures to make it possible for investors to understand the trends in its business. As a result of Rhodia's false statements, its securities traded at artificially inflated levels during the Class Period. The complaint further alleges that on or around March 23, 2004, it was revealed that French securities regulators were conducting an inquiry into the Company's financial reporting. Following this news, Rhodia's stock collapsed to below $1.50 per share. Subsequently, in March 2005, it was reported that France's stock market regulator had found that the Company had failed to disclose important information in a timely fashion beginning in 2001. If you bought Rhodia S.A. securities between April 26, 2001 and March 23, 2004, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest Several class actions have been filed against prosthetics company Hanger Orthopedic Group, Inc., (NYSE: HGR) and certain of its officers and directors by stockholders who purchased the company's common stock between July 29, 2003, and June 14, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities.
Several class actions have been filed against hospital management company Universal Health Services, Inc. (NYSE:UHS) and certain of its officers and directors by stockholders who purchased the company's common stock between July 21, 2003, and February 27, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The parties have reached a tentative $2.5 million settlement of a class action filed against respiratory therapy manufacturer Nellcor Puritan Bennett, Inc. (formerly Nasdaq: NELL), subsidiary of Tyco Healthcare/Mallinckrodt, and certain of its officers and directors by stockholders who purchased the company's common stock between September 29, 1995, and April 16, 1996. The actions claim that the defendants violated the California Corporations Code by issuing a series of material misrepresentations to the market over this time period for the purpose of inducing investors to buy the company’s stock. To recover under the settlement, a completed proof of claim postmarked no later than February 18, 2004, must be mailed to the claims administrator. A class action has been filed against Interlink Electronics Inc. (LINK), certain of its officers and directors by stockholders who purchased the company's common stock between April 24, 2003 and November 1, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. According to a law firm press release, on May 12, 2008 a class action lawsuit on behalf of persons who purchased Auction Rate Securities from RBC Dain Rauscher Inc., Royal Bank of Canada, and RBC Capital Markets Corporation between May 12, 2003 and February 13, 2008 (the “Class Period”), and who continued to hold such securities as of February 13, 2008. The class action is brought against Royal Bank of Canada and its wholly-owned subsidiaries, RBC Dain Rauscher Inc. and RBC Capital Markets Corporation. The Complaint alleges that RBC Dain Rauscher violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by deceiving investors about the investment characteristics of auction rate securities and the auction market in which these securities traded. Auction rate securities are either municipal or corporate debt securities or preferred stocks which pay interest at rates set at periodic “auctions.” Auction rate securities generally have long-term maturities or no maturity dates.
Several class actions have been filed against home-building company Ryland Group (NYSE: RYL) and certain of its officers and directors by stockholders who purchased the company's common stock between October 22, 2003, and January 7, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. |
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