According to the complaint the plaintiff alleges on behalf of purchasers of CommonWealth REIT (NYSE:CWH) common shares during the period between January 10, 2012 and August 8, 2012, that CommonWealth REIT and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing materially allegedly false and misleading statements regarding CommonWealth REIT’s financial performance and future prospects .

For anyone unfamiliar with the Dow Theory non-confirmation, it works rather simply. The two indices to be considered are the Dow Jones Industrial Average Index and the Dow Jones Transportation Average Index. When both are trending higher and making new significant highs (e.g. all-time highs or cyclical rally highs), it is believed that the stock market's rally is confirmed – that is, when both the industrial and transportation sectors are making new significant highs, it is generally viewed that the economy is on sound footing and that the stock rally has solid underpinnings from two very important sectors. However, if only one of the two moves to new significant highs, it is considered a non-confirmation, since one sector is not participating fully in the rally; and that fact calls into question the validity of the stock market rally. In other words, believers in Dow Theory non-confirmation feel as though a warning is presented when only one of the two makes new highs because the stock market rally does not appear broad-based.