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Lawsuit filed against Cooper in US court

Shareholder rights law firm Robbins Arroyo LLP announced that an investor of the US tyre maker Cooper Tire & Rubber Company filed a federal securities fraud class action complaint in the U.S. District Court for the District of Delaware.

Recently Hagens Berman Sobol Shapiro LLP (Hagens Berman), a national investor-rights law firm, behalf of institutional investors, said that it was investigating the terminated merger of the US-based Cooper Rubber & Tire Company with Indian tyre company Apollo Tyre.

In the complaint, the investor alleged that the company and certain of its officials violated the Securities and Exchange Act of 1934 causing financial losses those who purchased the company common stock between June 12, 2013 and November 8, 2013 (the Class Period), and Cooper stockholders of record as of the close of business on August 30, 2013 (the Record Date).

The complaints also alleged the tyre maker officials concealed the fact that the planned Apollo merger was opposed by Chengshan Group, Cooper’s joint venture partner in its subsidiary, Cooper Chengshan Tire Company, Ltd. (CCT).

Chengshan previously sought to acquire Cooper for itself and its opposition to the deal made it highly unlikely that the merger would be consummated according to the terms of the proxy statement filed by Cooper on August 30, 2013. Further, Cooper allegedly concealed the company’s lack of actual control over its CCT subsidiary, which was a critical part of the deal as it provided Apollo with a gateway to the Chinese market. As a result, Cooper issued statements throughout the Class Period that were materially false and misleading and caused investors to suffer financial losses.

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