WASHINGTON, D.C. — U.S. Market Advisors Law Group PLLC announces that a class action lawsuit has been filed against Eaton Corporation plc (“Eaton” or the “Company”) (NYSE:ETN) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Eaton between November 13, 2013 and July 28, 2014.
Eaton is an Ireland-based manufacturer of engineered products marketed to customers in the industrial, agricultural, construction, aerospace, and vehicle markets. The Company’s products include hydraulic equipment, fluid connectors, electrical distribution equipment, and engine components.
The Allegations Against Eaton
During the Class Period, in response to questions regarding the effect of the Merger on the Company’s ability to spin-off its businesses, Eaton executives falsely assured investors and the market of the continued feasibility of divesting the Company’s automobile-part manufacturing business on a tax-free basis. This prospect was key to investors’ and analysts’ ability to value the Company. As a result, Eaton and its executives artificially inflated the price of Eaton stock.
On July 29, 2014, Eaton Chief Executive Officer Alexander M. Cutler, after years of misleading the market regarding its unfettered ability to undertake a tax-free spin-off, finally informed investors that, contrary to the Company’s prior assurances, Eaton could not, in fact, feasibly divest its vehicle business until late 2017 due to tax-law restrictions related to the Merger with Cooper. Defendant Cutler further revealed that the Company had been “well aware” of these restrictions “all along.”
On this news, the price of Eaton shares dropped from $76.75 per share to $70.51 per share, or 8.13 percent, erasing nearly $3 billion from the Company’s market capitalization.
Eaton Investors Have Legal Options
If you suffered a loss from Eaton investments you have until September 23, 2016 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery does not require that you serve as a lead plaintiff. Concerned shareholders who would like more information about their rights and potential remedies can contact attorney David P. Abel (202) 559-8591, [email protected]
U.S. Market Advisors Law Group PLLC is a law firm based in Washington, D.C. The firm represents institutional investors from across the world in U.S. securities class action lawsuits.
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