Tronox Incorporated Investor Class Action Lawsuit
September 12, 2012 (Update) -- Proposed $37 million settlement in Tronox, Inc. class action.
According to the Notice summary:
TO: ALL PERSONS OR ENTITIES WHO PURCHASED OR OTHERWISE ACQUIRED TRONOX, INC. CLASS A OR CLASS B COMMON STOCK OR TRONOX, INC.'S 9½ PERCENT SENIOR NOTES DUE 2012 DURING THE PERIOD FROM NOVEMBER 21, 2005 THROUGH JANUARY 12, 2009, INCLUSIVE (THE "CLASS PERIOD"), AND WHO WERE DAMAGED THEREBY (THE "CLASS").
YOU ARE HEREBY NOTIFIED: (1) that the above-captioned action (the "Action") has been certified as a class action for purposes of a proposed settlement on behalf of the Class identified above, except for certain persons and entities who are excluded from the Class by definition as set forth in the Stipulation and Agreement of Settlement; and (2) that LaGrange Capital Partners, LP and LaGrange Capital Partners Offshore Fund, Ltd. (together "Lead Plaintiffs"), Named Plaintiff The Fire and Police Pension Association of Colorado and Named Plaintiff The San Antonio Fire and Police Pension Fund (collectively with Lead Plaintiffs, "Plaintiffs") and Thomas W. Adams, Marty J. Rowland, Mary Mikkelson (the "Tronox Individual Defendants"); Robert M. Wohleber, J. Michael Rauh, Luke R. Corbett, and Gregory F. Pilcher (the "Kerr-McGee Individual Defendants"); Kerr-McGee Corporation ("Kerr-McGee"); Anadarko Petroleum Corporation ("Anadarko"); and Ernst & Young LLP ("E&Y") (collectively, the "Settling Defendants") have entered into a proposed settlement (the "Settlement") for $37 million in cash, plus interest as it accrues. If approved, the Settlement will resolve all claims in the Action.
A hearing will be held before the Honorable Shira A. Scheindlin, in the United States District Court for the Southern District of New York, 500 Pearl Street, Courtroom 15C, New York, NY 10007, at 4:30 p.m. on November 19, 2012, to determine whether the proposed Settlement should be approved by the Court as fair, reasonable, and adequate, and to consider the application of Lead Counsel for attorneys' fees and reimbursement of litigation expenses. The Court may change the date of the hearing without providing additional notice to Class Members.
July 9, 2009 -- An investor has filed a proposed securities class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of Tronox, Inc. (OTC:TRXAQ.PK, OTC:TRXBQ.PK) common stock (Class A or Class B) between November 28, 2005 and January 12, 2009, inclusive over alleged Federal Securities Laws violations by Kerr-McGee Corp, Anadarko Petroleum Corp and others.
According to the complaint the plaintiff alleges that Kerr-McGee Corp, Anadarko Petroleum Corporation and certain of Kerr-McGee and Tronox Inc’s executives violated the Exchange Act by failing to disclose November 28, 2005 and January 12, 2009 material adverse facts about Tronox, Inc’s true financial condition, business and prospects. Due to the bankruptcy filing, Tronox and the Tronox Entities are not names as defendants in the lawsuit. Tronox was spun-off from Kerr-McGee Corp. in a two-step transaction.
In November 2005, Kerr-McGee Corp. sold 17.5 million shares of Tronox Class A shares in an initial public offering for $14.00 per share generating proceeds for Kerr-McGee of $225 million. After the IPO, Kerr-McGee Corp. continued to hold 56.7% of Tronox’s outstanding common stock. In March 2006, Kerr-McGee distributed the balance of the shares that it owned as Class B shares to its shareholders as a dividend (the “Spin-Off”). According to the putative securities class action Kerr-McGee Corp. dumped hundreds of millions of dollars of environmental and tort liabilities on former subsidiary Tronox Inc. and concealed the scope of those liabilities before spinning off the now-bankrupt Tronox. When the market learned of the true facts about Tronox Inc, the price of Tronox stock declined precipitously, so the lawsuit.
Tronox Incorporated (Public, OTC:TRXAQ & OTC:TRXBQ), located in Oklahoma City, OK, is a global producer and marketer of titanium dioxide pigment (TiO2), a white pigment used in a range of products. Tronox markets TiO2 under the brand name TRONOX. Tronox reported in 2006 Total Revenue of $1.4218billion and in 2007 a Total Revenue of $1.4263billion. TRXBQ shares traded recently at $0.075 per share, down from a 52weekHigh of $9.49 per share. TRXAQ shares traded recently at $0.13 per share, down from a 52weekHigh of $9.75 per share.