Schweitzer-Mauduit International, Inc. Hit by Investor Lawsuit Over Alleged Securities Laws Violations
An investor in Schweitzer-Mauduit International, Inc. filed a lawsuit in the United States District Court for the Northern District of Georgia on behalf of purchasers of Schweitzer-Mauduit International, Inc. (Public, NYSE:SWM) common stock during the period between August 5, 2009 and February 10, 2010, over alleged violations of Federal Securities Laws by Schweitzer-Mauduit Intl., Inc. and others.
Schweitzer-Mauduit International, Inc., located in Alpharetta, Georgia, is a multinational diversified producer of specialty papers and a supplier of fine papers to the tobacco industry. The Company manufactures and sells paper and reconstituted tobacco products to the tobacco industry, as well as specialized paper products for use in other applications. According to the complaint the plaintiff alleges that Schweitzer-Mauduit International, Inc. and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between August 5, 2009 and February 10, 2010 materially false and misleading statements regarding its business and financial results.
The plaintiff accuses that between August 5, 2009 and February 10, 2010 during defendants misrepresented the strength of Schweitzer-Mauduit International's competitive position and concealed problems with its most important customer and as a result of defendants' false and misleading statements, Schweitzer Schweitzer-Mauduit Intl's stock traded at artificially inflated prices between August 5, 2009 and February 10, 2010, reaching a high of $82 per share on January 14, 2010.
Schweitzer-Mauduit International, Inc. reported in 2007 Total Revenue of $714.80million with a Net Income of $3.40million, in 2008 Total Revenue of $767.90million with a Net Income of $0.7million, and in 2009 Total Revenue of $740.40million with a Net Income of$35.60million.
On February 10, 2010, after the market closed, Schweitzer Mauduit International reported its fourth quarter and full year 2009 financial results and in the conference call following the release, Schweitzer Mauduit International disclosed its most important customer's decision to try competitive products and announced its filing of a patent lawsuit against competitors. As a result, so the lawsuit, Schweitzer Mauduit International 's stock (SWM) declined $23.58 per share to close at $46.65 per share on February 11, 2010.
The plaintiff seeks to recover damages on behalf of all purchasers of Schweitzer common stock between August 5, 2009 and February 10, 2010
Shares of Schweitzer-Mauduit International, Inc. (Public, NYSE:SWM) recently traded at $44.99 per share, down from its 52weekHigh of $83.93per share.


