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SECURITIES
CLASS ACTION LAWSUITS
Class Action Lawsuits and Filings in the Securities Sector.
 Blockbuster Class Action
Stanford Law School
According to a press release dated November 10, 2005, the complaint alleges
that Viacom was Blockbuster's controlling shareholder and that, prior to the
Exchange Offer, Viacom caused Blockbuster to pay a $5 per share special
dividend of which Viacom was the primary beneficiary. In order to pay the
dividend, Blockbuster was forced to take on debt in the amount of approximately
$1.1 billion.
Full Story
HCA, Inc.
Several purported shareholder class action lawsuits have been filed against HCA
and certain of its officers and directors with violations of the Securities
Exchange Act of 1934. HCA is the nation's largest chain of for-profit
hospitals. Specifically, the complaint alleges that during the Class Period,
defendants caused HCA's shares to trade at artificially inflated prices by
issuing false statements concerning the Company's purported financial successes
while concealing that HCA's operational metrics had substantially deteriorated.
Defendants' positive statements had their intended effect, inflating the
Company's stock price by almost 50% from less than $40 per share on January 11,
2005 to its Class Period high of over $58 per share on June 22, 2005, during
which time defendants sold almost 1 million shares of the Company's stock at
inflated prices, pocketing more than $48 million in proceeds.
Full Story
Guidant Corporation
According to a press release dated November 4, 2005, the complaint alleges that
Guidant and certain of its officers and directors violated provisions of the
Securities Exchange Act of 1934, causing the Company's stock price to become
artificially inflated. On December 15, 2004, Guidant entered into a $24.5
billion merger deal with Johnson & Johnson . According to the complaint,
while the Company pointed to its defibrillator business as a key component of
that deal, it concealed from investors significant unaddressed product defect
and liability issues of the Company's implantable defibrillator product lines.
Full Story
Class Action Lawsuit Against Cray, Inc.
The Complaint alleges that defendants violated federal securities laws by
issuing a series of material misrepresentations to the market during the Class
Period concerning the Company's operations and prospects, thereby artificially
inflating the price of Cray securities.
Full Story
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