|Class Period:||Jun-26-07 to Jun-18-08|
|Lead Plaintiff Deadline:||Oct-11-08|
|Court:||District of Utah|
The Complaint charges Huntsman and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Huntsman is a manufacturer and marketer of differentiated chemicals and pigments. In or about May 2007, Huntsman began to contact potential buyers about a sale of the Company. On June 26, 2007, the Company announced that it had agreed to be acquired by Basell AF ("Basell") for $25.25 per share. Following this announcement, on July 3, 2007, the Company announced that it had received a superior merger proposal from Hexion Specialty Chemicals, Inc. ("Hexion"), an affiliate of private equity firm Apollo Management, L.P., for $27.25 per share. On July 12, 2007, the Company announced that it has agreed to be acquired by Hexion for $28.00 per share.
Following the Company's original and subsequent merger announcements, and the announcement that the Company had received a superior merger proposal from Hexion, the Company's shares dramatically increased in value. In the weeks and months following Huntsman's announcement that it had signed a definitive Merger Agreement with Hexion, and with the Company's securities trading at artificially inflated prices, Company insiders sold 57,082,420 shares of the Company's stock for gross proceeds of over $1.3 billion.
Then on June 19, 2008, the Company shocked investors when it announced that Hexion had filed a lawsuit against Huntsman seeking to terminate the Merger Agreement. The suit filed by Hexion revealed that three of Huntsman's five business segments had significantly underperformed relative to expectations, estimations and projections. Further, citing the combination of Huntsman's decreased earnings potential, as well as its significant increase in net debt, Hexion disclosed that it was unable to secure a financing Commitment Letter or solvency opinion -- both necessary for the merger to successfully close. Huntsman's deteriorating financial health -- given the dramatic increase in net debt and decline in earnings -- meant that the company had suffered a MAE, and in all likelihood the merger will not be completed. On this news, the Company's shares fell $8.00 per share, or 38.35 percent, to close on June 19, 2008 at $12.86 per share, on unusually heavy trading volume.
If you are a member of the class described above, you may, not later than September 15, 2008, 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. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.