Two law firms recently announced that a securities class action lawsuit against a restricted item recycling company reached a proposed settlement.
Law offices Kessler Topaz Meltzer and Check, LLP, and Rosenthal, Monhait and Goddess, P.A., noted that the class action settlement of the lawsuit against Heckmann Corporation was brought forth in the U.S. District Court for the District of Delaware. This is for all shareholders who acquired interests in the company during the class period between May 20, 2008, and May 8, 2009. This also includes stockholders who were in position to vote on the Heckmann merger with China Water and Drinks, Inc., which were those who owned interests on Sept. 15, 2008.
The settlement, if approved, would give shareholders a total value of $27 million. This includes approximately $13.5 million in cash, as well as 847,990 shares of Nuverra, the new name of Heckmann.
There will be a hearing on the settlement action on June 26, 2014, and Judge Mary Pat Thynge will look at a number of aspects of this proposal. These include whether or not the settlement amount is fair for the shareholders, as well as the plan of allocation is right for all parties. She will also look at whether the sale, distribution or deposit of the settlement shares can be exempted due to the Securities Act of 1933, specifically section 3(a)(10), as well as other issues.
For shareholders who are looking for information on this case, especially for important documents such as the notice of pendency and proposed settlement of class action, proof of claim and release form, final approval hearing and motion for attorneys’ fees and litigation expenses, it is possible to obtain them by speaking with the claims administrator. They can be contacted by mail, or through examining the settlement website.
Lawsuit filed in 2010
A law firm announced in May 2010 that the litigation was filed against Heckmann Corporation due to allegations that the company misled investors.
Ryan and Maniskas, LLP, noted that the complaint was entered in the U.S. District Court for the District of Delaware due to the company’s joint proxy after it merged with China Water and Drinks. The action allegedly had a number of statements that were false or misleading related to the financial standing of China Water and Drinks.