Bernstein Liebhard LLP Announces That A Class Action Has Been Filed Against CHC Group Ltd. And Advises Investors To Contact Bernstein Liebhard LLP Prior To The Lead Plaintiff Deadline
July 2, 2015
Bernstein Liebhard LLP today announces that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers (the “Class”) of CHC Group Ltd. (“CHC” or the “Company”) (NYSE: HELI) common stock during the period of January 17, 2014 to July 10, 2014, inclusive (the “Class Period”), including those traceable to CHC’s initial public offering (“IPO”) on January 16, 2014. The deadline to file a motion for lead plaintiff in a securities class action against CHC expires on July 17, 2015.
The complaint charges CHC, certain of its officers and directors, and each of the underwriters for the IPO, with violations of the Securities Act of 1933. The complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements and omissions in its public statements and filings, including the Registration Statement issued in connection with the IPO. Specifically, CHC failed to disclose that one of CHC’s two largest customers, Petroleo Brasileiro S.A. (“Petrobras”), had stopped making payments on its contracts with the Company. As a result of CHC’s false and misleading statements and omissions, the Company’s stock traded at artificially inflated prices during the Class Period.
On July 10, 2014, CHC’s Chief Financial Officer, Joan S. Hooper, disclosed that Petrobras had not made payments on contracts to CHC since April 2013, nearly ten months before CHC’s IPO. Additionally, Hooper revealed that CHC did not expect to recover revenues relating to the contract, that guidance for future quarters would not reflect any recovery, and that CHC’s revenues and EBITDAR for fiscal year 2014 would come in at the bottom of the Company’s guidance ranges due to Petrobras’ suspension of contract payments.
On this news, shares in CHC plummeted nearly 12% below its July 9, 2014 closing price, and more than 23% below the IPO price, to close at $7.63 per share on July 10, 2014, on high trading volume.
Plaintiffs seek to recover damages on behalf of all Class members who purchased shares of CHC common stock during the Class Period. If you purchased CHC securities as described above, and either lost money on the transaction or still hold the security, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than July 17, 2015.
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. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs’ firms in the country.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.