NEW YORK, Feb. 14, 2006 (PRIMEZONE) -- Labaton Sucharow & Rudoff LLP ("Labaton Sucharow") today announced that Labaton Sucharow and Lerach Coughlin Stoia Geller Rudman & Robbins LLP ("Lerach Coughlin") filed a class action lawsuit in the United States District Court for the Southern District of New York on February 3, 2006 on behalf of a Class consisting of (i) all United States citizens and entities that purchased or otherwise acquired the common stock of Royal Group Technologies Limited ("Royal Group" or the "Company") (NYSE:RYG) (TSX:RYG) on the New York Stock Exchange or the Toronto Stock Exchange; and (ii) all foreign persons and entities that purchased or otherwise acquired Royal Group common stock on the New York Stock Exchange between February 24, 2000 and October 18, 2004, inclusive (the "Class Period"). The lawsuit was filed against Royal Group and certain of its former officers and directors (collectively, "Defendants"). The docket number for the action is No. 06 Civ. 0876 (KMW). The action has been assigned to the Honorable Kimba M. Wood, U.S. District Judge.
If you are a member of this Class and wish to serve as a lead plaintiff, you must file an appropriate motion with the Court no later than April 3, 2006. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact one of our representatives or David J. Goldsmith, Esq. at 800-321-0476 or investorrelations@labaton.com. If you are a member of the Class, you can view a copy of the complaint as filed or join this class action online at http://www.labaton.com/get/?case=RoyalGroup. Any member of the proposed Class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges Royal Group and certain of its former officers and directors with violations of the Securities Exchange Act of 1934. Royal Group is a vertically integrated manufacturer of polymer-based home improvement, consumer and construction products. Royal Group's operations are located primarily in Canada and the United States, with international locations in Mexico, South America, Europe and Asia.
The complaint alleges that during the Class Period, Defendants caused Royal Group's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. The statements were materially false and misleading because 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. Royal Group executives ran the Company as their personal fiefdom and were not held accountable by the Company's board of directors for their wrongful conduct.
On October 15, 2004, the Company announced that certain Company officers and directors were the subject of criminal investigation by the Royal Canadian Mounted Police (the "RCMP") in connection their self-dealing transactions with Royal Group. On October 18, 2004, after the close of trading, the Company announced that Royal Group itself was being investigated by the RCMP in connection with the self-dealing and related-party transactions.
As a result of these revelations, the price of Royal Group stock dropped precipitously, falling from $8.97 per share on October 13, 2004 to $7.15 per share on October 19, 2004, a decline of more than 20 percent.
Plaintiffs seeks to recover damages for himself and all members of the Class. Plaintiff is represented by Labaton Sucharow and Lerach Coughlin, both of which firms have expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Labaton Sucharow is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for more than 40 years and has been recognized for its reputation for excellence by the courts. The firm's website (www.labaton.com) has more information about the firm.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.