Class Period: Jan 18, 2011 to Jul 31, 2011
Lead Plaintiff Deadline: Mar 19, 2012 + Deadline passed
Summary of Case:
A securities class action has been filed against HearUSA, Inc. ("HearUSA") on behalf of those who sold HearUSA, common stock between January 18, 2011 to July 31, 2011. This case has been filed in the USDC - New Jersey.
The complaint alleges that Siemens Hearing Instruments, Inc. ("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 90c/share on January 18, 2011 to 35c/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.
The complaint further alleges: (1) that despite Siemens' best efforts, it was unable to acquire HearUSA for less than its fair market value; (2) that although HearUSA was driven into bankruptcy as a result of Siemens' actions, HearUSA was able to interest a Siemens' rival in its acquisition; (3) that as a result, Siemens eventually acquired HearUSA in August 2011 at its market value prior to Siemens' public filings (between 93c and $1.09/share); and (4) that as a result of Siemens' actions, many investors had sold HearUSA stock in the interim at greatly reduced prices.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.