Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
D.C.
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Mass.
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New Hampshire
New Jersey
New Mexico
New York
N.Carolina
N.Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
S.Carolina
S.Dakota
Tennessee
Texas
Utah
Vermont
Virginia
Washington
W.Virginia
Wisconsin
Wyoming
Law Firm Website Design Companies : The Good, The Bad, and The Ugly

Plexus faces two class action suits

  Breaking Legal News  -   POSTED: 2007/07/09 11:16

Shareholders of contract manufacturer Plexus have filed two separate class action lawsuits against the Wisconsin-based company. The suits accuse the company and three of its officers of insider trading and inflating the company’s stock price.Plexus has a manufacturing facility in Nampa. The first lawsuit, filed June 25 by Western Pennsylvania Electrical Employees Pension Trust, alleges that Plexus and its officers failed to disclose material facts about the company’s financial performance, which led shareholders to purchase stock at an inflated price.

The complaint alleges that, between January 25, 2006 and July 27, 2006, Plexus failed to disclose that the company’s position in the defense market was weakening and that operations in the United Kingdom would have to be reorganized. Because of this information, Plexus lacked a “reasonable basis” for the positive statements it made during that period about the company’s future growth.

According to the complaint, Plexus “shocked investors” when, on July 27, 2006, the company lowered its earnings outlook for the year, based in part on limited revenue growth. The plaintiff alleges that this news caused shares of the company’s stock to fall $10.71 per share, or approximately 32 percent, to close at $22.89 per share.

The complaint alleges that, in a conference call following the July 26 quarterly report, Dean Foate, president, CEO and chairman of the board of directors, said that fourth quarter revenue outlook was softer than had been previously implied.
Foate and F. Gordon Bitter – chief financial officers – and John Nussbaum, who also served as chairman of the board, are all named individually as defendants.

The complaint alleges that because Foate, Bitter and Nussbaum controlled the contents of the company’s reports to the Securities and Exchange Commission and the public, they had the opportunity to correct the statements. According to the plaintiff, the defendants knew that the statements made by Plexus were “materially false and misleading.” 
The suit also accuses corporate officers and board members of insider trading, alleging that company officers were motivated to misrepresent revenue growth to allow company insiders to “sell 664,666 shares of their personally-held Plexus common stock for gross proceeds in excess of $26.3 million.”

The suit claims that Foate, Bitter and Nussbaum all benefited from selling stock during this period, as well as executive officers Michael Verstegen, Joseph Kronser, Thomas Czajkowski, David Clark, Paul Ehlers, David Rust, Joseph Kaufman, Simon Painter and George Setton and board members Ralf Boer, David Drury and Thomas Prosser.

The second lawsuit, filed June 29 by the Alan M. Ozell Trust, reasserts the accusation that Plexus withheld relevant information that caused the stock price to drop, but does not accuse anyone in the company of insider trading.

Both lawsuits request compensation for all damages in an amount to be proven at trial, as well as costs and expenses.
Plexus issued a statement on June 25 acknowledging that a class action complaint had been filed against the company, though Plexus claimed it had not yet received a copy of the complaint.

“Plexus believes that all of its public statements were correct and properly made; it thus intends to defend itself vigorously in this litigation,” according to the statement.

Angelo Ninivaggi, vice president, general counsel and secretary for Plexus, did not return a call requesting an updated statement.
The law firms of Ademi & O’Reilly, LLP and Lerach Coughlin Stoia Geller Rudman & Robbins LLP are representing the plaintiffs in both cases. The lawsuits were filed in the U.S. District Court for the Eastern District of Wisconsin.


Legal News | Breaking News | Terms & Conditions | Privacy | Law Firm Web Design by Law Promo

ⓒ Breaking Legal News. All Rights Reserved.

The content contained on the web site has been prepared by BLN as a service to the internet community and is not intended to constitute legal advice or a substitute for consultation with a licensed legal professional in a particular case.
   More Legal News
   Legal Spotlight
   Exclusive Commentaries
   Attorney & Blog - Blog Watch
   Law Firm News  1  2  3  4  5  6 
   Lawyer & Law Firm Links
San Francisco Trademark Lawyer
San Francisco Copyright Lawyer
www.onulawfirm.com
New Rochelle Accidents Attorneys
New Rochelle Personal Injury
www.kboattorneys.com
Chicago Business Lawyer
Cook County Contract Law
www.rothlawgroup.com
Canton Criminal Lawyer
Canton DUI lawyer
www.cantoncriminalattorney.com
Surry County Criminal Defense Lawyers
Yadkin County Family Law Attorneys
www.dirussolaw.com
Oregon DUI Law Attorney
Eugene DUI Lawyer. Criminal Defense Law
www.mjmlawoffice.com
Palm Beach Construction Law Attorney
Florida Construction Law
Wellington Construction Law
palmbeachconstructionlaw.org
Houston Car Accident Attorneys
Wrongful Death Attorneys Houston
Houston Wrongful Death
New York Adoption Lawyers
New York Foster Care Lawyers
Adoption Pre-Certification
www.lawrsm.com
Santa Ana Workers' Compensation Lawyers
www.gentryashtonlaw.com
Indianapolis personal injury lawyer
Brain injury lawyer Indianapolis
www.rwp-law.com
Eugene Bankruptcy Attorney
Bankruptcy Attorney Eugene
willamettevalleybankruptcy.com
   More Legal News  1  2  3  4  5  6
   Legal News Links
  Click The Law
  Daily Bar News
  The Legal Voice
  The Legal Report
  Legal News Post
  Crisis Legal News
  Legal News Journal
  Law Firm Logos
  Eugene Criminal Defense Law
  Attorney Web Design
  Immigration Law Web Design
  Law Firm Directory