Case Page

 

Case Status:    SETTLED
On or around 07/27/2010 (Date of order of final judgment)

Filing Date: July 17, 2008

According to a law firm press release, a class action was filed against the company seeking to pursue remedies under the Securities Exchange Act of 1934 against defendants Hexion Specialty Chemicals, Inc., and certain individuals.

The complaint alleges that on July 12, 2007, Hexion announced an agreement to acquire all Huntsman common stock in a merger transaction for $28/share. The transaction was to close during the second quarter 2008 pending receipt of regulatory approvals and satisfaction of other closing conditions. Huntsman shareholders approved the transaction on October 16, 2007. On May 14, 2008, Hexion disclosed that it agreed to allow additional time to obtain the regulatory approvals. Unbeknownst to the public, defendants had determined to abort the merger and took steps to abrogate the Merger Agreement. Defendants retained the services of Duff & Phelps to render an opinion that the combined entity lacked financial viability. On June 18, 2008, Duff sent a letter to the Board of Directors of Hexion opining that the combined company's assets would not exceed its liabilities, that it would not have the ability to pay its total debts and liabilities as they become due and that it would have an unreasonably small amount of capital. On that same date, defendants filed a complaint in the Delaware Court of Chancery, seeking abrogation of the Merger Agreement. The reaction in the marketplace was devastating to the price of Huntsman's common stock. On June 19, 2008, the first day of trading after the June 18, 2008 actions by Hexion, the market price of Huntsman common stock fell approximately $8, or 40%, from $20.86 to close at $12.84, on enormous volume of approximately 43 million shares.

On February 17, 2009, Judge Richard M. Berman consolidated the related cases, appointed the Hexion Movants as lead plaintiffs and approved their selection of the Law Offices of Bernard M. Gross, P.C., as lead counsel. Before filing an amended consolidated complaint, the plaintiffs filed a motion for preliminary approval of the settlement on December 10, 2009. According to the accompanying memorandum, the Settlement provides for a cash payment of $18,000,000 for the benefit of the Class to resolve the Action against all Defendants. On January 21, 2010, Judge Berman preliminarily approved the settlement. The Settlement Fairness Hearing is set for May 18, 2010.

On May 21, 2010, the Court approved the settlement, the Plan of Allocation, and awarded attorney fees and expenses.

COMPANY INFORMATION:

Sector: Basic Materials
Industry: Fabricated Plastic & Rubber
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: HUN
Company Market: New York SE
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: S.D. New York
DOCKET #: 08-CV-6394
JUDGE: Hon. Richard M. Berman
DATE FILED: 07/17/2008
CLASS PERIOD START: 05/14/2008
CLASS PERIOD END: 06/18/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Law Offices of Bernard M. Gross (Philadelphia) (former)
    1515 Locust Street, 2nd Floor, Law Offices of Bernard M. Gross (Philadelphia) (former), PA 19102
    215-561-3600 215-561-3000 · bmgross@bernardmgross.com
  2. Paskowitz & Associates
    60 East 42nd Street, 46th Floor, Paskowitz & Associates, NY 10165
    212.685.0969 212.685.2306 · classattorney@aol.com
  3. Roy Jacobs & Associates (New York)
    60 East 42nd Street, 46th Floor, Roy Jacobs & Associates (New York), NY 10165
    212.867.1156 212.867.1156 · jacobs@jacobsclasslaw.com
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