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Hausfeld LLP Files Class Action Suit
Class Action |
2012/01/21 10:10
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Hausfeld LLP has filed a securities class action lawsuit on behalf of those who sold HearUSA common stock between January 18, 2011 and July 31, 2011, inclusive. The lawsuit, filed January 18, 2012, seeks to pursue remedies against Siemens Hearing Instruments, Inc. (“Siemens”) for violations of Sections 10(b), 9(a)(2) and 18(a) of the Securities Exchange Act of 1934 [15 U.S.C. §§ 78j(b), 78i(a)(2), and 78r(a)] and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission (“SEC”) [17 C.F.R. § 240.10b-5]. Siemens is engaged, in part, in the manufacture of hearing products, and HearUSA was involved in the distribution of Siemens’ hearing products. The complaint was filed in the United States District Court for the District of New Jersey and is captioned MTB Investment Partners, LP vs. Siemens Hearing Instruments, Inc.
The complaint alleges that Siemens engaged in a fraudulent scheme to drive down the price of HearUSA common stock in an attempt to acquire HearUSA’s assets for less than their fair market value by, in part, filing false and misleading statements with the SEC. The result of Siemens’ false and misleading statements, according to the complaint, was to drive down the market price of HearUSA common stock from 90¢/share on January 18, 2011 to 35¢/share on July 28, 2011.
According to the complaint, Siemens made a number of false and/or misleading statements in its public filings which caused HearUSA stock to plummet. These public filings stated that Siemens at no point had the intention to acquire HearUSA, despite the fact that it had been in the advanced stages of a negotiated buyout process for HearUSA. The public filings further stated that Siemens, if it wanted to acquire HearUSA, could do so at no consideration to shareholders because of debts owed to Siemens by HearUSA. The complaint alleges that this assertion misrepresented the status and extent of the debt owed to Siemens by HearUSA and Siemens’ ability to acquire HearUSA pursuant to the credit agreement entered into between the two companies. The complaint alleges that, in making these statements, Siemens effectively told the market that HearUSA stock was worthless, and that the market responded accordingly.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, William Butterfield of Hausfeld LLP at (202)540-7200 or via email at wbutterfield@hausfeldllp.com.
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Class action or a representative action is a form of lawsuit in which a large group of people collectively bring a claim to court and/or in which a class of defendants is being sued. This form of collective lawsuit originated in the United States and is still predominantly a U.S. phenomenon, at least the U.S. variant of it. In the United States federal courts, class actions are governed by Federal Rules of Civil Procedure Rule. Since 1938, many states have adopted rules similar to the FRCP. However, some states like California have civil procedure systems which deviate significantly from the federal rules; the California Codes provide for four separate types of class actions. As a result, there are two separate treatises devoted solely to the complex topic of California class actions. Some states, such as Virginia, do not provide for any class actions, while others, such as New York, limit the types of claims that may be brought as class actions. They can construct your law firm a brand new website, lawyer website templates and help you redesign your existing law firm site to secure your place in the internet. |
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