|[January 23, 2014]
Hagens Berman Investigates Securities Fraud Claims Over Terminated Cooper Tire Merger on Behalf of Institutional Investors; Announces March 18, 2014 Lead Plaintiff Deadline
SEATTLE --(Business Wire)--
Hagens Berman Sobol Shapiro LLP ("Hagens Berman"), a national
investor-rights law firm, today announced it is investigating, on behalf
of institutional investors, the terminated merger of Cooper Rubber &
Tire Company ("Cooper" or the "Company") (NYSE: CTB) following the
filing of a securities class-action lawsuit claiming the Company and its
officers caused significant financial losses to stockholders by
withholding risks and misrepresenting information associated with a
failed 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, that had been entitled to vote on the proposed merger between
Cooper and Apollo.
Intuitional 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-securties.com/investigations/CTB.
On June 12, 2013, Cooper announced that it had 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 Coopers stock price skyrocketed from around $23 per
share to over $34 per share.
According to the firm's investigation, beginning on Oct. 4, 2013, a
series of disclosures alerted stockholders that the merger was in
jeopardy. 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 over $300 million in shareholder value.
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 by 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
Hagens Berman is also 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
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law
firm with offices in nine cities including Seattle, San Francisco,
Boston, Chicago, Colorado Springs, Los Angeles, New York City, Phoenix,
and Washington D.C. The Firm represents investors, whistleblowers,
workers and consumers in complex litigation. More about the law firm and
its successes can be found at www.hbsslaw.com.
The Firm's Securities Newsletter is at http://www.hb-securities.com/newsletter.
The Firm's securities law blog is at http://www.meaningfuldisclosure.com.
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