WILMINGTON, Del. (Feb. 5, 2014) — Robbins Arroyo L.L.C., a San Diego law firm specializing in shareholder rights, has filed a federal securities fraud class-action lawsuit against Cooper Tire & Rubber Co. in connection with Cooper's failed merger with India's Apollo Tyres Ltd.
The action was filed Feb. 4 in the U.S. District Court for the District of Delaware. Specifically, the suit alleges that Cooper executives concealed the opposition of Chengshan Group, Cooper's joint venture partner in China, to the merger with Apollo.
Chengshan's opposition — and the subsequent strike by workers at Cooper Chengshan Tire Co. Ltd. — caused Cooper's stock value to plummet, according to the suit. Per-share prices for Cooper stock fell $5.55 to $25.72 on Oct. 7, 2013, and again to $23.82 on Nov. 8, Robbins Arroyo said.
This is the second class action against Findlay, Ohio-based Cooper to be filed in the Delaware federal court since Cooper and Apollo terminated merger discussions Dec. 30.
In January, two New York law firms — Entwhistle and Cappucci L.L.P. and Bernstein Litowitz Berger & Grossmann L.L.P. — filed a class-action suit against Cooper, Cooper CEO Roy Armes and Cooper CFO Bradley Hughes.
The plaintiffs in both actions include anyone who purchased Cooper stock between June 12 and Nov. 8, 2013, and Cooper stockholders of record on Aug. 30, 2013, when shareholders voted on the merger.