R.H. Donnelley Corporation Shareholder Files Lawsuit
MARCH 2012 - According to the Notice:
Securities and Time Period: RHD common stock (CUSIP No. 74955W307) purchased between October 26, 2006 and May 29, 2009, inclusive.
Settlement Fund: $25,000,000 in cash. Your recovery will depend on the number of shares of RHD common stock you purchased between October 26, 2006 and May 29, 2009, inclusive, and the timing of your purchases and any sales. If claims are submitted for 100% of the eligible shares of RHD common stock, the estimated average recovery per share of common stock will be approximately $0.161 before deduction of Court-approved fees and expenses. The actual amount per share you could receive will depend on a number of factors which are explained in the Plan of Allocation contained below.
Settlement Class: The Court has conditionally certified a Settlement Class of all purchasers of RHD common stock between October 26, 2006 and May 29, 2009, inclusive, including any and all of their respective successors-in-interest, successors, trustees, executors, administrators, estates, heirs, assigns and transferees, and any person or entity acting for or on behalf of, or claiming under, any of them, but excluding Defendants, RHD, officers and directors of RHD during the Settlement Class Period, members of their immediate families and their legal representatives, heirs, successors, or assigns, and any entity in which the Defendants have or had a controlling interest. Also excluded from the Settlement Class are those Persons who timely and validly request exclusion from the Settlement Class pursuant to this Notice.
Reasons for Settlement: Avoids the costs and risks associated with continued litigation, including the danger of no recovery, and provides a benefit to the Settlement Class now.
FEBRUARY 2012 - Proposed $25 million settlement.
JUNE 2011 - Motion to dismiss denied.
OCTOBER 2009 - An investor in R.H. Donnelley Corporation (Public, OTC:RHDC) has filed a lawsuit in the United States District Court for the District of Delaware on behalf of purchasers of R.H. Donnelley Corporation (OTC:RHDCQ.PK) publicly traded securities during the period between July 26, 2007 and May 28, 2009, against certain RH Donnelley’s officers and/or directors.
According to the complaint the plaintiff alleges that RH Donnelley’s officers and/or directors violated the Securities Exchange Act of 1934 by issuing between July 26, 2007 and May 28, 2009 materially false and misleading statements regarding R.H. Donnelley’s business and financial results and that the defendants caused R.H. Donnelley Corp to fail to properly account for its bad debt expense and timely write down its impaired goodwill. The plaintiff accuses that as a result of defendants’ false and misleading statements, RH Donnelley’s stock traded at artificially inflated prices during the Class Period, trading as high as $66.67 in July 2007 and beginning in February 2008, defendants began to acknowledge problems in the Company’s operations and with its financial results. On March 12, 2009, RH Donnelley announced that it had retained a financial advisor to assist in the evaluation of its capital structure, including various balance sheet restructuring alternatives. Then, on May 29, 2009, RH Donnelley filed for bankruptcy. The stock now trades at around six cents per share.
R.H. Donnelley Corporation, located inCary, NC, is a Yellow Pages and online local commercial search company. The Company provides marketing solutions to its advertisers that generate ready-to-buy consumers for their local businesses. It provides local search solutions to consumers deliver relevant search results through a variety of print and online media platforms. Before filing for Chapter 11 bankruptcy R.H. Donnelley Corporation reported in 2007 Total Revenue of $2.6803billion with a Net Income of $46.86million and in 2008 Total Revenue of $2.61681billion with a Net Loss of $2.298.33billion. The company had assets of $11.9 billion and debt of $12.4 billion as of Dec. 31, according to Chapter 11 documents filed in U.S. Bankruptcy Court in Wilmington, Delaware.