United wins lawsuit
September 1, 2010 | Comments (0)
US based rental company United Rentals has won the lawsuit brought against it by investors following its failed sale to Cerebus Capital in 2007.
The lawsuit, brought by Vincent DeCicco and First New York Securities and other investment houses claimed that United and its executives violated securities laws by not properly disclosing to shareholders that Cerberus had expressed concerns about its ability to proceed with the $4 billion deal.
According to the complaint, United Rentals' failure to disclose this information "was materially misleading because it caused the market for its shares to trade at prices artificially inflated by the belief that the transaction would proceed."
The district court had dismissed the law suit having considered that there was not sufficient proof against United and its executives so the litigants appealed the decision to the United States Court of Appeals and on Monday the judges upheld the district court’s decision.
[[link:http://www.vertikal.net/en/news/story/4967/] See Investor sues United[[link]]
The lawsuit, brought by Vincent DeCicco and First New York Securities and other investment houses claimed that United and its executives violated securities laws by not properly disclosing to shareholders that Cerberus had expressed concerns about its ability to proceed with the $4 billion deal.
According to the complaint, United Rentals' failure to disclose this information "was materially misleading because it caused the market for its shares to trade at prices artificially inflated by the belief that the transaction would proceed."
The district court had dismissed the law suit having considered that there was not sufficient proof against United and its executives so the litigants appealed the decision to the United States Court of Appeals and on Monday the judges upheld the district court’s decision.
[[link:http://www.vertikal.net/en/news/story/4967/] See Investor sues United[[link]]
