Court dismisses Cooper Tire shareholder lawsuit
The US District Court in Delaware has dismissed the class action against Cooper Tire & Rubber that followed the unsuccessful Apollo Tyres acquisition attempt. The lawsuit, which was filed in January 2014, alleged the tyre maker, along with CEO Roy Armes and CFO Bradley Hughes, violated US federal securities laws by misrepresenting its financial condition, financial prospects, and the effectiveness of its internal controls. The action was filed by law firms Entwistle & Cappucci LLP and Bernstein Litowitz Berger & Grossmann LLP on behalf of Cooper Tire investors OFI Risk Arbitrages, OFI Risk Arb Absolu and Timber Hill L.L.C.
During a hearing held in March, the tyre maker’s attorney urged Judge Richard G. Andrews to dismiss the lawsuit, arguing that it didn’t even come close to proving the accusations made by the plaintiffs. On 1 July, Andrews decided in favour of Cooper Tire.
In a statement, the company wrote that “Cooper is pleased that the US District Court for the District of Delaware has granted the company’s motion to dismiss all claims against Cooper made by the plaintiffs alleging securities fraud related to the company’s planned merger with Apollo Tyres.” It added that Andrews’ decision is a “vindication for the company and the executives named in the lawsuit.”