Case Page

 

Case Status:    DISMISSED    
On or around 02/03/2010 (Court's order of dismissal)

Filing Date: October 29, 2008

The original Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning defendant's business, operations and prospects were materially false and misleading.

Specifically, the Complaint alleges that defendants' public statements were false and misleading or failed to disclose or indicate the following:(1) that the defendant's orders and sales were slowing; (2) slowing sales were causing the defendant's inventory of outdated machinery to grow; (3) that the Company failed to timely record an impairment in the value of its inventory; (4) as a result, the Company's financial results were materially inflated; and (5) that the Company lacked adequate internal controls.

On February 21, 2008, the defendant shocked investors when it revealed that in the fourth quarter of the fiscal year ending December 31, 2007, the defendant experienced a combination of prior period accounting adjustments and the negative impact of operational initiatives to reduce inventory which contributed to an unexpected loss in the fourth quarter of 2007. The defendant's fourth quarter and full year 2007 earnings reflected a significant and unexpected reduction in the Company's gross margin as a result of: prior period accounting adjustments related to inter-company profits in inventory elimination and accounts payable which were recorded in the fourth quarter of 2007; the rebalancing of production volumes in the Company's United States and Taiwan production facilities to address current market demand for certain products and to reduce inventory; higher price discounting related to plans to reduce finished machine inventories and accelerate the phase-out of older product lines, and product and channel mix changes.

Moreover, the defendant announced plans to lower inventory by $20 million and to discount inventory of older product lines, both of which would continue to constrain the Company's margins during the 2008 fiscal year. On this news, the defendant's shares declined $4.16 per share, or 25.43 percent, to close on February 21, 2008 at $12.20 per share, on unusually heavy trading volume.

On January 23, 2009, District Court Jonathan W. Feldman granted the motion to appoint Paul Campbell as lead plaintiff and approved Glancy Binkow & Goldberg LLP as lead counsel. On March 30, 2009, the lead plaintiff filed an Amended Complaint. On May 29, 2009, the defendants filed a motion to dismiss the Amended Complaint. On February 2, 2010, Judge Michael A. Telesca granted the defendants’ motion to dismiss with prejudice and ordered the case closed. On February 3, 2010, Judgment was entered in favor of the defendants.

COMPANY INFORMATION:

Sector: Capital Goods
Industry: Misc. Capital Goods
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: HDNG
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: W.D. New York
DOCKET #: 08-CV-06490
JUDGE: Hon. Michael A. Telesca
DATE FILED: 10/29/2008
CLASS PERIOD START: 02/22/2007
CLASS PERIOD END: 02/21/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  2. Law Offices of Howard G. Smith
    3070 Bristol Pike, Suite 112, Law Offices of Howard G. Smith, PA 19020
    215.638.4847 215.638.4867 ·
No Document Title Filing Date
COURT: W.D. New York
DOCKET #: 08-CV-06490
JUDGE: Hon. Michael A. Telesca
DATE FILED: 03/30/2009
CLASS PERIOD START: 01/16/2007
CLASS PERIOD END: 02/21/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  2. Glancy Binkow & Goldberg LLP (NY)
    1501 Broadway, Suite 1416, Glancy Binkow & Goldberg LLP (NY), NY 10036
    917.510.000 646.366-089 · info@glancylaw.com
No Document Title Filing Date