Bernstein Liebhard LLP Announces That A Securities Class Action Has Been Filed Against Eaton Corporation
August 21, 2012
Bernstein Liebhard LLP today announced that a class action has been commenced in the United States District Court for the Northern District of Ohio on behalf of a class (the “Class”) of purchasers of Eaton Corporation (“Eaton” or the “Company”) common stock between August 2, 2009 and June 4, 2012 (the “Class Period”).
The complaint alleges that Eaton issued false and misleading statements concerning its executives’ involvement in a scheme to improperly influence a Mississippi state court judge in litigation the Company had initiated against rival manufacturer Frisby Aerospace, Inc. (the “Eaton-Frisby Litigation”). More specifically, the complaint alleges that Eaton managers knew, but repeatedly caused Eaton to deny, that Eaton had engaged Mississippi attorney Ed Peters, a politically connected go-between, to improperly influence Bobby DeLaughter, the presiding judge in the Eaton-Frisby Litigation. DeLaughter later recused himself from the Eaton case when he became embroiled in an unrelated lawsuit involving high-powered Mississippi attorney Richard Scruggs. DeLaughter was sentenced to 18 months in prison after admitting he lied to FBI agents about conversations he had with Peters in the Scruggs case. Judge Swan Yerger, who replaced Judge DeLaughter, subsequently dismissed Eaton’s lawsuit against Frisby after deciding there was “clear and convincing” evidence that Eaton had hired Peters to secretly influence DeLaughter.
On May 31, 2012, Eaton’s CEO and senior executives filed affidavits with the court, which admitted that Eaton had failed to turn over records showing that Eaton had improperly, and possibly illegally, attempted to influence Judge DeLaughter. On this news, Eaton shares declined $3.10, or 7.2%, to close at $40.24 on June 1, 2012.
Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired Eaton stock during the Class Period. If you purchased or otherwise acquired Eaton stock during the Class Period, and either lost money on the transaction or still hold the shares, 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 October 2, 2012.
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.
If you are interested in discussing your rights as an Eaton shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last nine years.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Northern District of Ohio.