NEW YORK, July 25, 2016 (GLOBE NEWSWIRE) -- Labaton Sucharow LLP (“Labaton Sucharow”) announces that on July 22, 2016, it filed a securities class action lawsuit on behalf of its client Steamfitters Local 449 Pension Plan (“Local 449”) against Eaton Corporation plc (“Eaton” or the “Company”) (NYSE:ETN), and certain of its senior executives (collectively, “Defendants”). The action, which is captioned Steamfitters Local 449 Pension Plan v. Eaton Corporation plc, No. 16-cv-5894 (S.D.N.Y.), asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), and U.S. Securities and Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder, on behalf of all persons or entities who purchased or otherwise acquired the publicly traded securities of Eaton between November 13, 2013 and July 28, 2014, inclusive (the “Class Period”).
The Complaint alleges that during the Class Period, Defendants violated provisions of the Exchange Act by issuing false and misleading statements regarding the Company’s unencumbered ability to divest its automobile-part manufacturing business. Eaton is an Ireland-based manufacturer of engineered products marketed to customers in the industrial, agricultural, construction, aerospace, and vehicle markets. For most of its 100 year history, Eaton primarily was a vehicle component manufacturer. Since 2008, however, the Company has been making strategic shifts away from its vehicle business, while growing its electrical component businesses.
In 2012, the Company engaged in a merger (the “Merger”) with the Irish-headquartered Cooper Industries plc. (“Cooper”), which reincorporated the Company in Ireland. Following the Merger, and during the Class Period, in response to questions from securities analysts about the effect of the Merger on the Company’s ability to spin-off its business, Eaton executives falsely assured investors and the market of the continued feasibility of divesting the Company’s automobile-part manufacturing business on a tax-free basis. This prospect was key to investors’ and analysts’ ability to value the Company. As a result, Eaton and its executives artificially inflated the price of Eaton stock.
On July 29, 2014, Eaton Chief Executive Officer Alexander M. Cutler (“Cutler”) finally informed investors that, contrary to the Company’s prior assurances, Eaton could not feasibly divest its vehicle business until late 2017 due to tax-law restrictions related to the Merger with Cooper. Defendant Cutler further revealed that the Company had been “well aware” of these restrictions “all along.” This disclosure caused a material decline in the price of Eaton stock.
If you purchased or acquired the publicly traded securities of Eaton during the Class Period, you are a member of the “Class” and may be able to seek appointment as Lead Plaintiff. Lead Plaintiff motion papers must be filed with the U.S. District Court for the Southern District of New York no later than September 23, 2016. A lead plaintiff is a court-appointed representative for absent members of the Class. You do not need to seek appointment as Lead Plaintiff to share in any Class recovery in this action. If you are a Class member and there is a recovery for the Class, you can share in that recovery as an absent Class member. You may retain counsel of your choice to represent you in this action.
If you would like to consider serving as Lead Plaintiff or have any questions about this lawsuit, you may contact Francis P. McConville, Esq. of Labaton Sucharow, at (800) 321-0476, or via email at fmcconville@labaton.com. You can view a copy of the complaint online at http://www.labaton.com/en/cases/Steamfitters-Local-449-Pension-Plan-v-Eaton-Corporation-plc.cfm?cs_forceReadMode=1.
Local 449 is represented by Labaton Sucharow, which represents many of the largest pension funds in the United States and internationally with collective assets under management of more than $2 trillion. Labaton Sucharow’s litigation reputation is built on its half century of securities litigation experience, 60 full-time attorneys, and in-house team of investigators, financial analysts, and forensic accountants. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY and Wilmington, DE. More information about Labaton Sucharow is available at www.labaton.com.