According to a press release dated June 1, 2009, the complaint charges Charter and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Charter operates a broadband communications business in the United States.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s ability to service its debt, its potential for mergers, and the value of its stock. Specifically, defendants failed to disclose, among other things, that Charter would not be able service its debt to September 2010, but rather Charter would file bankruptcy in March of 2009. Also, the Defendants issued misleading statements about Charter’s potential for mergers. As a result of defendants’ false and misleading statements, Charter’s securities traded at artificially inflated prices during the Class Period, reaching a high of $ 4.800 on July 19, 2007.
On February 12, 2009, Charter issued a press release stating that it would file for bankruptcy before April 1, 2009.
According to the Company’s FORM 10-Q for the quarterly period ended March 31, 2010, in February 2010, the United States Bankruptcy Court for the Southern District of New York held that these plaintiffs’ causes of action were released by the Third Party Release and Injunction within Charter’s Plan of Reorganization. Plaintiffs thereafter filed an appeal with the United States District Court for the Southern District of New York. Charter denies the allegations made by the plaintiffs in these matters, believes all of the claims asserted in these cases were released through the Plan and intends to seek dismissal of these cases and otherwise vigorously contest these cases.
On September 15, 2011, the plaintiffs filed a motion to dismiss without prejudice. The motion was granted on October 3, 2011. Judgment was entered the same day, and the action is now dismissed without prejudice.