R.H. Donnelley Corporation Shareholder Files Lawsuit

If you purchased R.H. Donnelley Corporation (OTC:RHDCQ.PK) publicly traded securities during the period between July 26, 2007 and May 28, 2009, you have certain options and there are strict and short deadlines running. Deadline: December 22, 2009. Those RHDC investors should contact the Shareholders Foundation.

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): 
R.H. Donnelley Corporation
Case Name: 
R.H. Donnelley Corporation Class Action Lawsuit 10/23/2009
Case Status: 
Lawsuit Filed
Affected Securities
OTC: RHDCQ.PK
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/23/2009
Class Period Begin: 
07/26/2007
Class Period End: 
05/28/2009
Court of Filing: 
United States District Court for the District of Delaware
Deadline To File for Lead: 
12/22/2009
Summary: 

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.