NEW YORK, April 2, 2021 /PRNewswire/ -- Bernstein Litowitz
Berger & Grossmann LLP ("BLB&G") today announced that
investors who purchased publicly traded common stock of HRG Group,
Inc. ("HRG") (previously NYSE: HRG) from January 26, 2017 to November 19, 2018, inclusive (the "Class
Period") may seek appointment as Lead Plaintiff to represent a
subclass of HRG investors in a securities
class-action lawsuit against HRG, Spectrum Brands
Holdings, Inc. ("Spectrum") (NYSE: SPB), and certain of
Spectrum's current and former senior executives
(collectively, "Defendants") in the United States District
Court for the Western District of Wisconsin. The action, which
is captioned In re Spectrum Brands
Securities Litigation, No. 19-CV-178,
19-CV-347 (W.D. Wis.), asserts claims under Sections 10(b) and
20(a) of the Securities Exchange Act of 1934, 15 U.S.C. §§
78j(b) and 78t(a), and Securities and Exchange
Commission Rule 10b-5, 17 C.F.R.
§ 240.10b-5, on behalf
of investors who purchased HRG's publicly traded common stock
during the Class Period. A copy of the Amended Class Action
Complaint filed in the action (the "Complaint") and other
information about the action are available on BLB&G's
website at www.blbglaw.com.
HRG was previously a holding company whose principal asset was a
majority stake in Spectrum. Spectrum is a consumer-brands company
that provides a wide variety of consumer products through its
retail partners, including Walmart, Home Depot, and Lowe's. The two
companies merged on July 13, 2018,
forming the current Spectrum.
The Complaint alleges that during the Class Period, Defendants
falsely stated that Spectrum was successfully executing two
major capital projects consolidating the operations of its
critical Global Auto Care ("GAC") and Home & Hardware
Improvement ("HHI") divisions. The Complaint alleges
that Defendants repeatedly told the market that the GAC and
HHI consolidations were progressing effectively and on
schedule, and any issues were merely temporary and transitory
and were being quickly corrected. In truth, Defendants allegedly
knew that the GAC and HHI consolidations were suffering from
fundamental execution problems that were far more serious than
disclosed to investors.
On April 26, 2018, Spectrum
disclosed disappointing financial results for the second
quarter of 2018 based on the poorly executed consolidation
projects, and Spectrum CEO Andreas
Rouvé resigned. HRG's stock price fell 22%, from
$93.15 to $72.563 in one day (adjusted for the
subsequent merger). Defendants immediately represented that
the problems at the GAC and HHI facilities were being swiftly
corrected. In July 2018, HRG and
Spectrum merged, and the resulting company assumed the Spectrum
name. Then, on November 16, 2018,
Spectrum disclosed another disastrous quarter driven by a
$92.5 million goodwill write down for
GAC, again because of the poorly executed consolidations.
Spectrum's stock price declined 19%, from $59.35 to $48.05
per share.
The action is pending before the Honorable James
D. Peterson. In June 2019, the
Court appointed the Public School Teachers' Pension and Retirement
Fund of Chicago ("Chicago
Teachers") and the Cambridge Retirement System "Cambridge") as Lead Plaintiffs and BLB&G
as Lead Counsel in accordance with the Private Securities
Litigation Reform Act of 1995 ("PSLRA"). In July 2019, Lead Plaintiffs filed the Complaint on
behalf of a putative class of investors who purchased or otherwise
acquired the common stocks of Spectrum and HRG during the Class
Period. Defendants moved to dismiss the Complaint, and that motion
was fully briefed. In August 2020,
Lead Plaintiffs and Defendants entered into a Stipulation and
Agreement of Settlement providing for a proposed settlement of the
action for $39 million in cash (the
"Settlement"). In September 2020, the
Court granted Lead Plaintiffs' motion for preliminary approval of
the Settlement.
On February 6, 2021, the Court
entered an Order denying without prejudice Lead Plaintiffs' motion
for final approval of the proposed Settlement and Lead Counsel's
motion for an award of attorney's fees and expenses. The Court
directed Lead Plaintiffs to either "publish a new notice that
includes the claims of the HRG class members, and then the court
will choose an additional lead plaintiff for those members in
accordance with [the PSLRA]," or "dismiss the claims of class
members who purchased HRG stock" and "allow them to file a separate
lawsuit if they wish." Lead Plaintiffs notified the Court that they
would publish this notice allowing HRG investors to seek
appointment as Lead Plaintiff for a subclass of HRG investors.
On April 2, 2021, the Court
entered an Order bifurcating the action, providing for separate
putative subclasses of (i) Spectrum investors led by Chicago
Teachers and Cambridge and (ii) HRG investors, and
directing publication of this notice to HRG investors.
Per this notice published on April 2, 2021, in
accordance with the PSLRA, investors who purchased
publicly traded common stock of HRG during the Class Period and
who wish to serve as Lead Plaintiff for the HRG
subclass are required to file a motion for appointment as
Lead Plaintiff for the HRG subclass by no later than June 1, 2021.
The Spectrum Lead Plaintiffs and the Spectrum subclass will
continue to be represented by BLB&G, a firm of over
100 attorneys with offices in New
York, California,
Delaware, Louisiana, and Illinois. If you wish
to discuss this action or have any questions concerning this
notice or your rights or interests, please contact an attorney of
your choice. If you have questions about this notice, you may also
contact Katherine M. Sinderson of BLB&G at
212-554-1392, or via email at KatieM@blbglaw.com. Please do
not contact the Court with questions about this notice.
Since its founding in 1983, BLB&G has built an international
reputation for excellence and integrity. Specializing in
litigation concerning securities fraud, corporate governance,
and shareholders' rights, among other practice areas,
BLB&G prosecutes class and private actions on behalf of
institutional and individual clients worldwide. Unique among
its peers, BLB&G has obtained several of the largest and
most significant securities recoveries in history, recovering
billions of dollars on behalf of defrauded investors. More
information about BLB&G can be found online at
www.blbglaw.com.
CONTACT:
Katherine M. Sinderson
Bernstein Litowitz Berger & Grossmann LLP
1251 Avenue of Americas, 44th Floor
New York, New York 10020
Telephone: (212) 554-1392
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SOURCE Bernstein Litowitz Berger & Grossmann LLP