| Company: | Heckmann Corporation |
| Ticker Symbol: | HEK |
| Class Period: | May-20-08 to May-8-09 |
| Date Filed: | May-24-10 |
| Lead Plaintiff Deadline: | Jul-23-10 |
| Court: | Central District of California |
| Allegations: | |
Heckmann is a holding company created to buy operating businesses that focuses on buying and building companies in the water sector. The complaint charges Heckmann and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
The complaint alleges that on May 20, 2008, the Company announced that it had struck a deal to acquire China Water, a Nevada corporation engaged in the manufacture and distribution of bottled water products in the People's Republic of China. On October 2, 2008, the Company filed a Joint Proxy and Information Statement/Prospectus (the "Joint Proxy"), which represented that Heckmann had conducted extensive due diligence on China Water and recommended that Heckmann shareholders vote in favor of the Merger. The Company's stockholders approved the Merger at an October 30, 2008 special meeting of stockholders. Then, on May 8, 2009, the Company announced its financial results for the first fiscal quarter of 2009, including a net loss for the quarter of $186.2 million and a $184 million impairment charge.
The release also reported that the Company had discovered what it believed to be "financial misconduct and the diversion of cash deposits by former management of China Water." As a result of the May 8, 2009 announcement and the revelation that incomplete and misleading information had been provided to shareholders concerning the Merger and China Water, the Company's stock price declined, reaching as low as $3.38 per share in July 2009 compared to more than $10 per share shortly after the Merger was announced.
According to the complaint, the Joint Proxy contained material misstatements and omitted material information, did not fairly and accurately disclose the risks and liabilities that the Company and its shareholders would be assuming by acquiring China Water, and misrepresented the adequacy of the due diligence defendants conducted on China Water.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
