SUTTS, STROSBERG LLP FILES CLASS ACTION AGAINST ARMTEC INFRASTRUCTURE INC.
newswire.ca
TORONTO AND WINDSOR, ON, June 17, 2011 /CNW/ - A class action has been commenced in the Ontario Superior Court of Justice on behalf of all investors who acquired shares of Armtec Infrastructure Inc. ("Armtec") during the period March 30, 2011 to and including June 8, 2011 (the "Class Period"). The plaintiff alleges that the defendants engaged in violations of Ontario's Securities Act and the common law.
The plaintiff has retained Sutts, Strosberg LLP to prosecute the class action.
The plaintiff alleges that at the time Armtec raised capital in the public market, the defendants knew or ought to have known that Armtec had not achieved the level of earnings required in order to pay dividends.
On June 8, 2011, Armtec disclosed that it has suffered a net loss of $13 million during the first quarter of fiscal 2011 and that it suspended payment of its quarterly dividend. After the disclosure, Armtec's share price declined by more than 50 per cent on trading volume of more than four million shares.
Jay Strosberg, a partner of Sutts, Strosberg LLP said, "Through this class action, we hope to determine precisely what the defendants knew about Armtec's financial results when Armtec raised more than $50 million from investors."
Sutts, Strosberg LLP pioneered securities class actions in Ontario. As a result of resolving class actions such as YBM Magnex, Southwestern Resources, Atlas Cold Storage, CV Technologies and NovaGold Resources; Sutts, Strosberg LLP has recovered more than $150 million for its clients in securities class action alone. Please visit the Sutts, Strosberg LLP website www.strosbergco.com and www.arfclassaction.com for more information about the Armtec class action. |
