On November 13, 2009, Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court, District of Delaware, on behalf of all persons who purchased the publicly traded securities of RH Donnelley (“RH Donnelley” or the “Company”) [OTC: RHCDQ.PK] between July 26, 2007 and May 28, 2009 against certain officers and directors of RH Donnelley pursuant to §§10(b) and 20(a) of the 1934 Act and SEC Rule 10b-5 (the “Class”).
The case name is styled Saggese v. Swanson, et al. A copy of the complaint filed in this action can be viewed by clicking the link to the right.
The Complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. Defendants caused the Company to fail to properly account for its bad debt expense and timely write down its impaired goodwill. As a result of defendants’ false and misleading statements, RH Donnelley’s stock traded at artificially inflated prices during the Class Period, trading as high as $66.67 in July 2007.
Beginning in February 2008, defendants began to acknowledge problems in the Company’s operations and with its financial results. Nonetheless, these partial disclosures were accompanied by denials and continued misrepresentations by defendants.
On March 12, 2009, RH Donnelley announced that it had retained Lazard Ltd. as a financial advisor to assist in the evaluation of its capital structure, including various balance sheet restructuring alternatives.
Then, on May 29, 2009, RH Donnelley filed for bankruptcy. The stock now trades at around two cents per share.
As a result of defendants’ false statements and omissions, RH Donnelley’s stock traded at artificially inflated prices during the Class Period. However, after the above revelations seeped into the market, the Company’s shares were hammered by massive sales, sending them down more than 99% from their Class Period high.
In ignorance of the false and misleading nature of the statements described in the complaint, and the deceptive and manipulative devices and contrivances employed by said defendants, plaintiff and the other members of the Class relied, to their detriment, on the integrity of the market price of RH Donnelley publicly traded securities. Had plaintiff and the other members of the Class known the truth, they would not have purchased said securities, or would not have purchased them at the inflated prices that were paid.
Additional cases were filed by investors. On December 22, 2009, motions were made to consolidate the various cases and appoint lead plaintiff and counsel. On June 22, 2010, the Judge consolidated the various cases and appointed lead plaintiff and counsel. On July 29, 2010, the Judge ordered the Consolidated Complaint to be filed by August 19, 2010.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 70 attorneys in various practice areas; and offices in Chicago, New York City, San Diego, and West Palm Beach. The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Gregory Mark Nespole, Esq., Gustavo Bruckner, Esq. or Derek Behnke), or via e-mail at firstname.lastname@example.org. All e-mail correspondence should make reference to RH Donnelley.