According to the law firm press release, Eaton is an Ireland-based manufacturer of engineered products marketed to customers in the industrial, agricultural, construction, aerospace, and vehicle markets. For most of its 100 year history, Eaton primarily was a vehicle component manufacturer. Since 2008, however, the Company has been making strategic shifts away from its vehicle business, while growing its electrical component businesses.
In 2012, the Company engaged in a merger (the “Merger”) with the Irish-headquartered Cooper Industries plc. (“Cooper”), which reincorporated the Company in Ireland. Following the Merger, and during the Class Period, in response to questions from securities analysts about the effect of the Merger on the Company’s ability to spin-off its business, Eaton executives falsely assured investors and the market of the continued feasibility of divesting the Company’s automobile-part manufacturing business on a tax-free basis. This prospect was key to investors’ and analysts’ ability to value the Company. As a result, Eaton and its executives artificially inflated the price of Eaton stock.
On November 4, 2016, Plaintiff filed an Amended Complaint. On December 13, the Court issued an Order consolidating actions and appointing Lead Plaintiff and Lead Counsel. On January 13, 2017, Lead Plaintiff filed a consolidated Complaint.
On September 20, 2017, the Court issued an Order granting Defendants' Motions to Dismiss. Plaintiffs were given leave to file an amended Complaint, which was filed on October 30. On November 17, Defendants filed a Motion to Dismiss the amended Complaint. On July 25, 2018, the Court issued an Order granting Defendants' Motion to Dismiss. On August 20, Lead Plaintiff filed a Notice appealing the decision of the District Court. On November 27, 2019, the Court of Appeals issued an Order affirming the judgment of the District Court.