SAN DIEGO and FINDAY, Ohio, Feb. 4, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of Cooper Tire & Rubber Company (NYSE: CTB) has filed a federal securities fraud class action complaint in the U.S. District Court for the District of Delaware. The complaint alleges that the company and certain of its officers violated the Securities and Exchange Act of 1934 harming those who purchased Cooper common stock between June 12, 2013 and November 8, 2013 (the "Class Period"), and Cooper stockholders of record as of the close of business on August 30, 2013 (the "Record Date").
Cooper Is Accused of Failing to Disclose Risks Associated with Failed Apollo Merger
According to the complaint, Cooper shares fell $5.55, to close at $25.72 on October 7, 2013, on news that the Cooper's previously announced plan to complete a merger with Apollo Tyres Ltd. at $35 per share was in jeopardy causing Cooper to file a lawsuit seeking to force Apollo to close on the merger. On November 8, 2013, the Court refused to require Apollo to closer the merger and Cooper shares fell $3.08 to close at $23.82 on November 8, 2013.
Specifically, the complaint alleges that Cooper executives concealed the fact that the planned Apollo merger was opposed by Chengshan Group, Cooper's joint venture partner in its subsidiary, Cooper Chengshan Tire Company, Ltd. ("CCT"). Chengshan previously sought to acquire Cooper for itself and its opposition to the deal made it highly unlikely that the merger would be consummated according to the terms of the proxy statement filed by Cooper on August 30, 2013. Further, Cooper allegedly concealed the company's lack of actual control over its CCT subsidiary, which was a critical part of the deal as it provided Apollo with a gateway to the Chinese market. As a result, Cooper issued statements throughout the Class Period that were materially false and misleading and caused investors to suffer financial losses.
Cooper Shareholders Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo
If you invested in Cooper and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: http://www.robbinsarroyo.com/shareholders-rights-blog/cooper-tire-rubber-company
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP