Case Page

 

Case Status:    DISMISSED    
On or around 10/03/2011 (Stipulation and order of dismissal (voluntary dismissal))

Filing Date: March 11, 2010

According to a press release dated March 11, 2010, the complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. Specifically, during the Class Period defendants misrepresented the strength of Schweitzer’s competitive position and concealed problems with Schweitzer’s most important customer. As a result of defendants’ false and misleading statements, Schweitzer’s stock traded at artificially inflated prices during the Class Period, reaching a high of $82 per share on January 14, 2010. As a result of this inflation, Schweitzer was able to consummate a secondary offering of 1.8 million shares of its stock at $60 per share in November 2009.

On February 10, 2010, after the market closed, Schweitzer reported its fourth quarter and full year 2009 financial results. In the conference call following the release, defendants disclosed the Company’s most important customer’s decision to try competitive products and announced its filing of a patent lawsuit against competitors. As a result, Schweitzer’s stock tumbled $23.58 per share to close at $46.65 per share on February 11, 2010, a one-day decline of nearly 34%, on volume of nearly 14 million shares.

According to the complaint, the true facts, which were then known by or available to the defendants during the Class Period, were: (a) Schweitzer’s competitive position was not adequately protected from foreign competition as to low ignition propensity (“LIP”) paper, as such competitors were increasingly developing alternative methods to manufacture banded LIP paper; (b) the Company’s most important customer was not in agreement with Schweitzer as to a license agreement between the two companies; and (c) the Company’s competitive position was much more precarious than represented by defendants and the efforts by other manufacturers to invade Schweitzer’s territory were growing.

On August 26, 2010, the Court is issued Order Appointing the Institutional Investors As Lead Plaintiffs and Approving the Investors’ Selection Of Lead Counsel.

On October 11, 2010, an Amended Class Action Complaint was filed by the Lead plaintiffs against the defendants in this action. The defendants responded by filing a motion to dismiss the Amended Class Action Complaint, which was granted withouth prejudice on August 26, 2011. The plaintiffs have been given leave to file an second amended complaint on or before September 23, 2011.

On August 26, 2011, the Defendants' motion to dismiss was granted without prejudice allowing Plaintiffs leave to file a second amended complaint.

On September 30, 2011, pursuant to Rule 41(a)(1) of the Federal Rules of Civil Procedure this action was dismissed with prejudice also granting each party to bear its own attorneys’ fees and costs incurred in the action.

COMPANY INFORMATION:

Sector: Basic Materials
Industry: Paper & Paper Products
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SWM
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: N.D. Georgia
DOCKET #: 10-CV-00711
JUDGE: Hon. Timothy C. Batten, Sr
DATE FILED: 03/11/2010
CLASS PERIOD START: 08/05/2009
CLASS PERIOD END: 02/10/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Coughlin Stoia Geller Rudman & Robbins LLP (Atlanta)
    3424 Peachtree Road, NE, Suite 1650, Coughlin Stoia Geller Rudman & Robbins LLP (Atlanta), GA 30326
    404.504.6500 404.504.6500 ·
  2. Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 · info@csgrr.com/
  3. Sullivan, Ward, Asher & Patton, P.C.
    25800 Northwestern Highway, 1000 Maccabees Center, Sullivan, Ward, Asher & Patton, P.C., MI 48075-1000
    248.746.0700 248.746.0700 ·
No Document Title Filing Date
COURT: N.D. Georgia
DOCKET #: 10-CV-00711
JUDGE: Hon. Timothy C. Batten, Sr
DATE FILED: 10/11/2010
CLASS PERIOD START: 08/05/2009
CLASS PERIOD END: 02/10/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Robbins Geller Rudman & Dowd LLP (Atlanta)
    3424 Peachtree Road, NE, Suite 1650, Robbins Geller Rudman & Dowd LLP (Atlanta), GA 30326
    404.504.6500 404.504.6501 ·
  2. Robbins Geller Rudman & Dowd LLP (Boca Raton)
    120 East Palmetto Park Road, Suite 500, Robbins Geller Rudman & Dowd LLP (Boca Raton), FL 33432
    561.750.3000 561.750.3364 ·
  3. Sullivan, Ward, Asher & Patton, P.C.
    25800 Northwestern Highway, 1000 Maccabees Center, Sullivan, Ward, Asher & Patton, P.C., MI 48075-1000
    248.746.0700 248.746.0700 ·
No Document Title Filing Date