Key Developments For RHI Entertainment, Inc.
RHI Entertainment, Inc. (RHIE.O) (Consolidated Issue listed on NASDAQ Global Market)
Kendall Law Group Announces Securities Class Action Against RHI Entertainment, Inc.
Kendall Law Group, led by a former federal judge announced that a lawsuit has been filed against RHI Entertainment, Inc. for securities violations concerning their initial public offering on June 19, 2008. The complaint, filed in the Southern District of New York, charges the Company and certain of its Officers and Directors with violations of the federal securities laws concerning Defendants positive statements regarding the financial condition, business and prospects of the Company. The Company's Registration Statement created the materially misleading impression of the business by stating that they had orders for 40 MFT movies and mini-series which had been paid for, were in production and would be delivered in the later part of the year. These statements were false given the declining state of the credit markets and other negative factors that had an impact on the Company's business.
Izard Nobel LLP Announces Class Action Lawsuit Against RHI Entertainment, Inc.
The law firm of Izard Nobel LLP announced that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of those who purchased the common stock of RHI Entertainment, Inc. pursuant and/or traceable to the Company's initial public offering (IPO or the Offering) on or about June 19, 2008. The complaint charges RHI Entertainment and certain of its executives violated federal securities laws. It is alleged that, throughout the Class Period, defendants made positive statements regarding the Company's financial condition, business and prospects. Specifically, the description of the Company's business in the Form S-1/A Registration Statement (the "Registration Statement") filed in connection with the IPO, on or about June 19, 2008, created the materially misleading impression that at the time of the IPO the Company had orders for 40 MFT movies and mini-series which had been paid for, were in production and would be delivered in the later half of the year. The complaint further alleges that these statements were materially false and misleading because defendants failed to disclose that, given the declining state of the credit markets and other negative factors then impacting the Company's business, RHI Entertainment would not be able to complete 40 MFT movies and miniseries in 2008.
Shalov Stone Bonner & Rocco LLP Announces Class Action Against RHI Entertainment, Inc.
Shalov Stone Bonner & Rocco LLP announced that a class action lawsuit has been filed on behalf of all persons who purchased the common stock of RHI Entertainment, Inc. pursuant and/or traceable to the Company's initial public offering on or about June 19, 2008. The lawsuit is pending in the United States District Court for the Southern District of New York against the Company, Robert A. Halmi, the Company's Chief Executive Officer and Chairman of the Board of the Company and William J. Aliber, the Company's Chief Financial Officer. According to the complaint, defendants made false and misleading statements concerning the Company's financial condition, business and prospects. The complaint alleges that defendants negligently prepared the Registration Statement, which consequently contained false and misleading statements of material facts and which failed to include material adverse facts. Specifically, according to the complaint, the Registration Statement stated that the Company expected to develop, produce and distribute 40 MFT movies and mini-series, when in actuality, because of the declining state of the credit markets, as well as other negative factors impacting the Company's business, the Company would not be able to complete the 40 MFT movies and mini-series in 2008. According to the SEC's rules and regulations, the Registration Statement should have disclosed that the Company would not be able to complete the 40 MFT movies and mini-series in 2008.
Abraham, Fruchter & Twersky, LLP Files Class Action Suit Against RHI Entertainment, Inc.
Abraham, Fruchter & Twersky, LLP announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of RHI Entertainment, Inc. pursuant and/or traceable to the Company's initial public offering (the IPO or the Offering) on or about June 19, 2008. The complaint charges the Company and certain of its executives with violations of the Securities Act of 1933 by, among other things, issuing a materially false and misleading Prospectus and Registration Statement (collectively, the Registration Statement). According to the complaint, the Company's executives made materially false and misleading statements in the Registration Statement regarding the Company's financial prospects at the time of the IPO, that based on their business operations, liquidity, and expansion distribution opportunities, the Company had orders for and would be able to release 40 MFT movies and mini-series. The complaint further alleges that defendants failed to disclose that, given the declining state of the credit markets and other negative factors then impacting the Company's business, the Company would not be able to complete 40 MFT movies and miniseries in 2008. This caused the price of the IPO to be artificially inflated.
Coughlin Stoia Geller Rudman & Robbins LLP Files Class Action Suit Against RHI Entertainment, Inc
Coughlin Stoia Geller Rudman & Robbins LLP announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the common stock of RHI Entertainment, Inc. pursuant and/or traceable to the Company's initial public offering (the IPO or the Offering) on or about June 19, 2008. The complaint charges RHI Entertainment and certain of its executives with violations of the Securities Act. RHI develops, produces, and distributes new made-for-television (MFT) movies, mini-series, and other television programming worldwide. The Company also produces new episodic series programming for television. On or about June 13, 2008, RHI filed with the Securities and Exchange Commission (SEC) a Form S-1/A Registration Statement (the Registration Statement) for the IPO. On or about June 19, 2008, the Prospectus (the Prospectus) with respect to the IPO, which forms part of the Registration Statement, became effective and, including the exercise of the over-allotment, more than 13.5 million shares of RHI`s common stock were sold to the public, thereby raising more than $189 million. The complaint alleges that, throughout the Class Period, defendants made numerous positive statements regarding the Company`s financial condition, business and prospects.
