Another class action suit has been filed on behalf of former shareholders of Fleetwood Enterprises Inc.
The latest suit was filed Friday (Sept. 4) by Dyer & Berens LLP in the United States District Court for the Central District of California on behalf of investors who purchased Fleetwood Enterprises Inc. common stock between Dec. 6, 2007, and March 10, inclusive, referred to as the “class period.” The complaint charges certain of Fleetwood’s former officers and directors with violations of the Federal Securities Exchange Act of 1934.
The complaint alleges that during the class period defendants misrepresented the following adverse facts, among others: (a) that demand for Fleetwood’s manufactured houses and the big homes-on-wheels was rapidly declining; (b) that the company’s RV Group sales, especially in its travel trailer division, were declining because of softening consumer demand due to high gasoline prices and the credit crisis; (c) that the company’s financial condition was declining precipitously such that the company was nearing insolvency; and (d) based on the foregoing, defendants had no reasonable basis for their positive statements regarding the company’s ability to control its deteriorating financial condition.
On March 10, Fleetwood announced that it had filed for Chapter 11 bankruptcy for itself and certain operating subsidiaries, and that it was closing its travel trailer division. As a result of the announcement, the price of Fleetwood common stock fell to $0.01 per share.
Plaintiff seeks to recover damages on behalf of Fleetwood investors.
For more information about the firm, please go to www.DyerBerens.com.