Labaton Sucharow has settled a securities class action in which it acted as co-lead counsel for lead plaintiffs, entitled In re Royal Group Technologies Securities Litigation, No. 06 Civ. 822 (RJH) (S.D.N.Y.). The case settled for CAD 9 million, to be shared by the American class represented by Labaton Sucharow and a Canadian class in a parallel action in Canada. Defendants agreed to settle the case after they received the lead plaintiffs' opposition to their motion to dismiss the class action complaint.
In the action, Labaton Sucharow asserted claims under the Securities Exchange Act of 1934 against Royal Group Technologies Limited and certain of its former directors and officers. Lead Plaintiffs allege in essence that Royal Group's founder and former Chairman and CEO, and his cronies on the Board of Directors, systematically treated the Company as their personal piggy bank by causing it to enter into sweetheart deals with them and then concealed these related-party transactions from the investing public.
The class generally included (i) all United States citizens and entities that purchased or otherwise acquired the common stock of Royal Group Technologies Limited ("Royal Group") on the New York Stock Exchange or the Toronto Stock Exchange; and (ii) all foreign persons and entities that purchased or otherwise acquired Royal Group common stock on the New York Stock Exchange between February 24, 2000 and October 18, 2004, inclusive.