Case Page

 

Case Status:    DISMISSED    
On or around 09/01/1999 (Other)

Filing Date: August 05, 1998

According to the docket posted on the site, on August 30, 1999, U.S. District Judge William H. Walls issued a Letter Order granting the motion to dismiss and remanding the action to the Superior Court of New Jersey, Bergen County. The case was closed in federal court on September 1, 1999.

The complaint, brought on behalf of the public minority shareholders, charges that the defendants manipulated the stock price of Zenith and engaged in a common plan and scheme to defraud Zenith public minority shareholders of their stake in the Company by freezing them out for no payment whatsoever in an announced "prepackaged" bankruptcy plan and thereby gain total control of Zenith, by violating the federal securities laws and state and common law, by amongst other things, misrepresenting and/or omitting material information concerning their intentions to support Zenith financially and maintain Zenith as a viable and
independent entity.

Furthermore, the complaint charges that the defendants, contrary to the Company's April 1, 1998 press release and representations, prior to announcing that they were going to put Zenith in bankruptcy and thereby obtaining the rest of Zenith's shares with no payment to the public minority shareholders, did not: undertake an adequate evaluation of the Company's worth as a potential merger/acquisition candidate; take adequate steps to enhance the Company's value and attractiveness as a merger/acquisition candidate; effectively expose the Company to the marketplace in an effort to create an active auction for the Company; act independently, so that the interests of the public shareholders will be protected; or adequately ensure that no conflicts of interest existed or, if such conflicts existed, to insure that all conflicts would be resolved in favor of the interests of the public shareholders.

The complaint was originally filed in the Superior Court of New Jersey, Bergen County.

COMPANY INFORMATION:

Sector: Consumer Cyclical
Industry: Audio & Video Equipment
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ZETHQ
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. New Jersey
DOCKET #: 98-CV-03663
JUDGE: Hon. William H. Walls
DATE FILED: 08/05/1998
CLASS PERIOD START: 07/17/1995
CLASS PERIOD END: 05/21/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Starr, Gern, Davison & Rubin
    103 Eisenhower Pkwy, Starr, Gern, Davison & Rubin, NJ 07068
    973.403.9200 973.226.0030 · sgdr@starrgern.com
No Document Title Filing Date
COURT: D. New Jersey
DOCKET #: 98-CV-03663
JUDGE: Hon. William H. Walls
DATE FILED: 12/31/1998
CLASS PERIOD START: 07/17/1995
CLASS PERIOD END: 05/21/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Schoengold & Sporn PC (New York)
    233 Broadway 39Th Floor, Schoengold & Sporn PC (New York), NY 10279
    212.964.0046 ·
  2. Starr, Gern, Davison & Rubin
    103 Eisenhower Pkwy, Starr, Gern, Davison & Rubin, NJ 07068
    973.403.9200 973.226.0030 · sgdr@starrgern.com
No Document Title Filing Date