Contact Information: Contact: Jack G. Fruchter Arthur J. Chen Abraham, Fruchter & Twersky, LLP One Penn Plaza, Suite 2805 New York, N.Y. 10119 Telephone: (212) 279-5050
Abraham, Fruchter & Twersky, LLP Files Class Action Suit Against RHI Entertainment, Inc.
| Source: Abraham, Fruchter & Twersky, LLP
NEW YORK, NY--(Marketwire - October 12, 2009) - Abraham, Fruchter & Twersky, LLP today
announced that a class action has been commenced in the United States
District Court for the Southern District of New York on behalf of
purchasers of the common stock of RHI Entertainment, Inc. ("RHI" or the
"Company") (NASDAQ : RHIE ) pursuant and/or traceable to the Company's
initial public offering (the "IPO" or the "Offering") on or about June 19,
2008.
The complaint charges RHI and certain of its executives with violations of
the Securities Act of 1933 by, among other things, issuing a materially
false and misleading Prospectus and Registration Statement (collectively,
the "Registration Statement"). According to the complaint, the Company's
executives made materially false and misleading statements in the
Registration Statement regarding the company's financial prospects at the
time of the IPO, that based on their business operations, liquidity, and
expansion distribution opportunities, the Company had orders for and would
be able to release 40 MFT movies and mini-series. The complaint further
alleges that defendants failed to disclose that, given the declining state
of the credit markets and other negative factors then impacting the
Company's business, the Company would not be able to complete 40 MFT movies
and miniseries in 2008. This caused the price of the IPO to be
artificially inflated.
On November 6, 2008, the Company disclosed the liquidity and growth
problems to the public in a press release, which caused the price of RHI
common stock to drop from $13.91 per share to $7.95 per share on November
10, 2008, on heavy trading volume. RHI common stock currently trades at
$2.87 per share.
Plaintiff seeks to recover damages on behalf of all purchasers who
purchased common stock of RHI pursuant and/or traceable to the Company's
IPO on or about June 19, 2008. The Plaintiff is represented by Abraham,
Fruchter & Twersky, LLP which has extensive experience in securities class
action cases, and the firm has been ranked among the leading class action
law firms in terms of recoveries achieved by a survey of class action law
firms conducted by Institutional Shareholder Services.
If you would like to discuss this action or if you have any questions
concerning this notice or your rights as a potential class member or lead
plaintiff, you may contact: Jack G. Fruchter or Arthur J. Chen of Abraham,
Fruchter & Twersky, LLP at 212-279-5050, or via e-mail at
jfruchter@aftlaw.com or achen@aftlaw.com, respectively. If you wish to
serve as lead plaintiff, you must move the Court no later than December 8,
2009. 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 a member of the proposed class.
Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.