HearUSA, Inc. Investors File Securities Class Action Lawsuit Against Siemens Hearing Instruments, Inc. Over Alleged Securities Laws Violations

If you sold HearUSA common stock (AMEX:EAR / OTC:HEARQ) between January 18, 2011 and July 31, 2011, you have certain options and there are strict and short deadlines running. Deadline: March 16, 2012 and HearUSA stockholders should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
HearUSA
Case Name: 
HearUSA Shareholder Class Action 01/20/2012
Case Status: 
Lawsuit Filed
Affected Securities
PINK: HEARQ
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
01/20/2012
Class Period Begin: 
01/18/2011
Class Period End: 
07/31/2011
Court of Filing: 
U.S. District Court for the District of New Jersey
Deadline To File for Lead: 
03/16/2012
Summary: 

San Diego, Jan. 23, 2012 (Shareholders Foundation) -- An investor in HearUSA, Inc. (Public, PINK:HEARQ) filed a lawsuit in the U.S. District Court for the District of New Jersey against Siemens Hearing Instruments, Inc over alleged Violations of Federal Securities Laws.

According to the complaint the plaintiff alleges that Siemens Hearing Instruments, Inc violated the Securities Exchange Act of 1934 by issuing a number of allegdly false and/or misleading statements in its public filings which caused HearUSA stock to decline.
Siemens Hearing Instruments, Inc is engaged, in part, in the manufacture of hearing products, and HearUSA Inc was involved in the distribution of Siemens Hearing Instruments’ hearing products.

Specifically the plaintiff alleges that Siemens Hearing Instruments, Inc engaged in a fraudulent scheme to drive down the price of HearUSA common stock in an attempt to acquire HearUSA’s assets for less than their fair market value by, in part, filing false and misleading statements with the U.S. Securities and Exchange Commission (“SEC”).
According to the complaint, Siemens Hearing Instruments, Inc allegedly made a number of false and/or misleading statements that Siemens Hearing Instruments at no point had the intention to acquire HearUSA, despite the fact that it had been in the advanced stages of a negotiated buyout process for HearUSA.
The plaintiff says that the public filings further stated that Siemens Hearing Instruments, if it wanted to acquire HearUSA, could do so at no consideration to shareholders because of debts owed to Siemens Hearing Instruments by HearUSA Inc. But the complaint alleges that this assertion misrepresented the status and extent of the debt owed to Siemens Hearing Instruments by HearUSA Inc and Siemens Hearing Instruments’ ability to acquire HearUSA pursuant to the credit agreement entered into between the two companies. The complaint alleges that, in making these statements, Siemens Hearing Instruments effectively told the market that HearUSA stock was worthless, and that the market responded accordingly.

Shares of HearUSA, Inc. (Public, PINK:HEARQ) traded during May 2011 as low as $0.28 per share.
Then on May 16, 2011 HearUSA, Inc. voluntarily filed for chapter 11 protection and on July 25, 2011 HearUSA, Inc. (HEARQ.PK) disclosed in a bankruptcy court filing that it received a bid to acquire substantially all of its assets from Audiology Distribution, LLC, which is an affiliate of Siemens Hearing Instruments, Inc..
Shares of HearUSA, Inc. (Public, PINK:HEARQ) jumped from $0.35 per share on July 29, 2011 to $0.88 per share on August 1, 2011.