HARTFORD, Conn., Feb. 1, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of (i) all persons who purchased or otherwise acquired the common stock of Royal Group Technologies Limited ("Royal Group" or "the Company") (NYSE:RYG) (TSX:RYG); and (ii) all foreign persons and entities that purchased or otherwise acquired the common stock of Royal Group on the NYSE during the period between February 24, 2000 and October 18, 2004, inclusive (the "Class Period").
The Complaint alleges defendants violated federal securities laws by issuing a series of materially false statements regarding Royal Group's financial condition. Specifically, defendants knew, but failed to disclose, that Company officers and directors systematically treated the Company like their personal piggy bank -- routinely causing the Company to engage in financial transactions either with themselves or with companies under their control. It is alleged that the course of self-dealing conduct that transpired at Royal Group was pervasive and substantial.
On October 15, 2004, Royal Group announced that Company officers and directors were the subject of a Royal Canadian Mounted Police ("RCMP") criminal investigation in connection with their engaging in self-dealing transactions with Royal Group. Then, on October 18, 2004 (after the close of trading), the Company announced that it was being criminally investigated by the RCMP in connection with the self-dealing transactions.
As a result of the revelations of the substantial self-dealing transactions by Defendants, the price of Royal Group's stock fell from $8.97 per share on October 13, 2004, to $7.15 per share on October 19, 2004, a decline of $1.82 per share, or more than 20%.
If you are a member of the class, you may, no later than March 28, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca