|By PR Newswire||
|March 6, 2014 02:03 PM EST||
SEATTLE, March 6, 2014 /PRNewswire/ -- Hagens Berman Sobol Shapiro LLP, a national investor-rights law firm, reminds purchasers of Cooper Rubber & Tire Company ("Cooper" or the "Company") (NYSE: CTB) of the March 18, 2014 deadline to file for lead plaintiff in a securities fraud class-action lawsuit against CTB claiming the Company and its officers caused significant financial losses to stockholders by withholding risks and misrepresenting information associated with a terminated sale to India-based Apollo Tyres Ltd ("Apollo"). Investors or stockholders who suffered significant financial losses related to the case are invited to email [email protected] for more information.
The lawsuit was filed on behalf of all persons or entities that purchased or acquired securities or company stock between June 12, 2013 and Nov. 8, 2013 (the "Class Period"). The lawsuit is also on behalf of Cooper stockholders of record as of the close of business on Aug. 30, 2013 who had been entitled to vote on the proposed merger between Cooper and Apollo.
Institutional investors, money managers, funds and persons with losses in excess of $300,000 who would like to discuss the investigation, the merits of the claims, or the options for participating in litigation are invited to contact Hagens Berman Partner Reed Kathrein, who is leading the firm's investigation, by calling 510-725-3000 or emailing [email protected].
The deadline to file as Lead Plaintiff in the case is March 18, 2014. Additional information is available at http://hb-securities.com/investigations/CTB.
On June 12, 2013, Cooper announced that it entered into an agreement to be acquired by Apollo for $35 per share, which would create the seventh-largest tire manufacturer in the world by revenue. Following this announcement, Cooper's stock price skyrocketed from around $23 per share to more than $34 per share.
According to the firm's investigation, a series of disclosures alerted stockholders that the merger was in jeopardy beginning on Oct. 4, 2013. On Oct. 4, 2013, Cooper filed a lawsuit against Apollo in an attempt to force through the deal. Cooper stock fell from $31.27 per share on October 3, 2013 to close at $25.72 per share on October 7, 2013, wiping out more than $300 million in shareholder value. The stock continues to trade around $23, closing at $23.60 on March 5, 2014.
Recent reports reveal that Cooper Tire has suffered a $29 million loss due to Chinese industrial action, including strikes.
To date, Hagens Berman's investigation strongly suggests that Cooper was aware of severe undisclosed risks to the merger but never informed investors. Evidence produced in a November trial over the terminated merger indicates Cooper and Apollo pursued the merger in the face of opposition from Che Hongzhi—the chairman of the Chengshan Group, which is the 35 percent joint venture owner of Cooper's most important subsidiary, Cooper Chengshan Tire Company, Ltd. According to that testimony, formal negotiations beginning in May 2013 revealed that Chengshan objected to the deal, and eventually demanded $400 million for its stake in the venture—or nearly one-sixth of the cost of the entire deal.
Hagens Berman is investigating other potential undisclosed issues, which the firm believes were material to investors, including:
- Chengshan Group had been in talks about making its own bid for Cooper when Cooper agreed to a deal with Apollo;
- In March 2013, Apollo and Cooper first identified Chengshan's objection, and in May, Mr. Hongzhi made a troubling statement to both companies in a meeting;
- Within one month of the June merger announcement, Roy Ames, Cooper's CEO, met with Mr. Hongzhi to try to overcome his objections.
Hagens Berman is continuing its investigation and invites further information.
Persons with non-public information who want to consider their options to help in the investigation or take advantage of the SEC Whistleblower program may contact Reed Kathrein at 510-725-3000 or email the firm at [email protected] for more information. Under the new SEC Whistleblower program, whistleblowers who provide original information to the SEC may receive rewards totaling up to 30 percent of any successful recovery made by the SEC.
About Hagens Berman
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in nine cities. The Firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hb-securities.com The Firm's Securities Newsletter is at http://www.hb-securities.com/newsletter. The firm's blog is located at www.meaningfuldisclosure.com.
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SOURCE Hagens Berman Sobol Shapiro LLP