Shareholder Class Action Filed Against Royal Group Technologies, Limited by the Law Firm of Schiffrin & Barroway, LLP
February 02 2006 - 5:30PM
PR Newswire (US)
RADNOR, Pa., Feb. 2 /PRNewswire/ -- The following statement was
issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed
against Royal Group Technologies, Ltd. (NYSE:RYG) ("Royal Group" or
the "Company") in the United States District Court for the Southern
District of New York on behalf of a class consisting of: (i) all
United States citizens and entities that purchased or otherwise
acquired the common stock of Royal Group on the New York Stock
Exchange ("NYSE") or the Toronto Stock Exchange ("TSE"); and (ii)
all foreign persons and entities that purchased or otherwise
acquired the common stock of Royal Group on the NYSE between
February 24, 2000 and October 18, 2004, inclusive (the "Class
Period"). If you wish to discuss this action or have any questions
concerning this notice or your rights or interests with respect to
these matters, please contact Schiffrin & Barroway, LLP (Darren
J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at
1-888-299-7706 or 1-610-667-7706, or via e-mail at . The complaint
charges Royal Group and certain of its officers and directors with
violations of the Securities Exchange Act of 1934. Royal Group is a
vertically integrated manufacturer of polymer-based home
improvement, consumer and construction products. More specifically,
the Defendants failed to disclose the following materially adverse
facts to the market: (1) that Individual Defendants abused their
control over the Company to engage in a series of undisclosed
related-party transactions and self-dealing transactions, which
were never disclosed to shareholders; (2) as a result of this abuse
of power, the Individual Defendants reaped substantial personal
gains from their dealings; (3) that the undisclosed self-dealing
and related- party transactions caused the Company to
misappropriate millions of dollars; (4) that the Company lacked
adequate controls in place to ensure that related- party
transactions were disclosed to the Company's shareholders; and (5)
that the Company's financial results were not prepared in
accordance with Canadian Generally Accepted Accounting Principles
("Canadian GAAP") or reconciled with US Generally Accepted
Accounting Principles ("US GAAP"). On February 25, 2004, Royal
Group revealed that it was the subject of an investigation by the
Ontario Securities Commission (the "OSC") into the flow of goods
and services between the Company and a resort owned by De Zen. In
response to this announcement, Royal Group purportedly organized a
so-called Special Committee to conduct an "independent" inquiry
into the conduct that the OSC was investigating. The Special
Committee quickly concluded that there was no evidence of
wrongdoing. On October 15, 2004, the Company announced that the
Company insiders were the subject of the Royal Canadian Mounted
Police's ("RCMP") criminal investigation in connection with their
engaging in self-dealing transactions with Royal Group. Then, on
October 18, 2004 (after the close of trading), the Company
announced that the Company itself, as well as the Company insiders,
were being criminally investigated by the RCMP in connection with
the defendants' self-dealing transactions. As a result of the
revelations of the substantial self-dealing transactions by
Defendants, shares of Royal Group fell $1.12 per share, or 12.49
percent, on October 18, 2004 (the first day of trading after the
disclosure of the RCMP's investigation into the Company), to close
at $7.85 per share. Plaintiff seeks to recover damages on behalf of
class members and is represented by the law firm of Schiffrin &
Barroway, which prosecutes class actions in both state and federal
courts throughout the country. Schiffrin & Barroway is a
driving force behind corporate governance reform, and has recovered
billions of dollars on behalf of institutional and individual
investors from the United States and around the world. For more
information about Schiffrin & Barroway, or to sign up to
participate in this action online, please visit
http://www.sbclasslaw.com/. If you are a member of the class
described above, you may, not later than March 28, 2006 move the
Court to serve as lead plaintiff of the class, if you so choose. A
lead plaintiff is a representative party that acts on behalf of
other class members in directing the litigation. In order to be
appointed lead plaintiff, the Court must determine that the class
member's claim is typical of the claims of other class members, and
that the class member will adequately represent the class. Under
certain circumstances, one or more class members may together serve
as "lead plaintiff." Your ability to share in any recovery is not,
however, affected by the decision whether or not to serve as a lead
plaintiff. You may retain Schiffrin & Barroway, or other
counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP Darren J. Check, Esq.
Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087
1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at First
Call Analyst: FCMN Contact: DATASOURCE: Schiffrin & Barroway,
LLP CONTACT: Schiffrin & Barroway, LLP: Darren J. Check, Esq.
or Richard A. Maniskas, Esq., +1-888-299-7706, +1-610-667-7706 or
Web site: http://www.sbclasslaw.com/
Copyright
Royal Tech (NYSE:RYG)
Historical Stock Chart
From Jul 2024 to Jul 2024
Royal Tech (NYSE:RYG)
Historical Stock Chart
From Jul 2023 to Jul 2024