This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Hagens Berman Investor Alert: 12 Days Remain To File For Lead Plaintiff In Cooper Tire Securities Fraud Lawsuit

Stocks in this article: CTB

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 CTB@hbsslaw.com 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 CTB@hbsslaw.com.

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 CTB@hbsslaw.com 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 BermanHagens 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.

ContactsFirmani + Associates Mark Firmani, 206-443-9357 Mark@firmani.com

SOURCE Hagens Berman Sobol Shapiro LLP

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs