|Royal Group Technologies Ltd.
|February 11, 1999 to October 13, 2004
|Lead Plaintiff Deadline:
|Southern District, NY
The complaint charges Royal Group and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Royal Group is a vertically integrated manufacturer of polymer-based home improvement, consumer and construction products. Royal Group's operations are located primarily in Canada and the United States, with international locations in Mexico, South America, Europe and Asia.
The complaint alleges that during the Class Period, defendants caused Royal Group's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. The statements were materially false and misleading because defendants knew, but failed to disclose that: (i) defendants were enjoined in a scheme to packet ill-gotten monies in violation of applicable law, including laws governing "fraud" and "conspiracy"; (ii) defendants used a resort partially owned by them as a vehicle to steal money from the Company; (iii) the Company's inventory was overstated as defendants delayed the writedown of these assets to prevent further earnings erosion; (iv) the Company's U.S. window business was not poised for growth but faltering, contrary to defendants' portrayal; (v) the defendants' margins were being eroded by the increase of higher raw material costs; and (vi) as a result of (i)-(vi) above, defendants' projections for FY 2003-2004 were grossly overstated.
On October 15, 2004, Royal Group disclosed the first Royal Canadian Mounted Police ("RCMP") production order for three Royal Group current or former executives who faced allegations of defrauding shareholders and creditors. The court documents named company founder, controlling shareholder and non-executive chairman Vic De Zen, former CFO Gary Brown and then current President and CEO Douglas Dunsmuir. The investigation relates to allegations that De Zen, Brown and Dunsmuir violated sections of the Criminal Code for fraud and conspiracy by circulating or publishing a prospectus or statement or account which they knew was false, for a period between January 1996 and July 2004. Upon this news, shares of Royal Group fell $1.12 per share, or almost 15%, to close at $7.85 per share on the next trading day on unusually heavy trading volume. On October 28, 2004, these allegations widened to include current CFO Ronald Goegan and large shareholders Domenic D'Amico and Fortunato Bordin, and expanded the time period to between January 1996 to present.
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.
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