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Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Heckmann Corporation

^{Published on 2010-05-21 13:40:22 - Market Wire}
 

SAN DIEGO--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/heckmann/ ]) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Central District of California on behalf of purchasers of Heckmann Corporation (aHeckmanna) (NYSE:HEK) common stock during the period between May 20, 2008 and May 8, 2009 (the aClass Perioda) and all persons or entities who held Heckmann common stock on September 15, 2008 and were eligible to vote on Heckmanna™s acquisition of China Water and Drinks, Inc. (the aMergera) at the October 30, 2008 special meeting.

"financial misconduct and the diversion of cash deposits by former management of China Water."

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from May 6, 2010. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffa™s counsel, Darren Robbins of Robbins Geller at 800-449-4900 or 619-231-1058, or via e-mail at [ djr@rgrdlaw.com ]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at [ http://www.rgrdlaw.com/cases/heckmann/ ]. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Heckmann and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Heckmann is a holding company created to buy operating businesses that focuses on buying and building companies in the water sector.

The complaint alleges that on May 20, 2008, the Company announced that it had struck a deal to acquire China Water and Drinks, Inc. (aChina Watera), a Nevada corporation engaged in the manufacture and distribution of bottled water products in the Peoplea™s Republic of China. On October 2, 2008, the Company filed a Joint Proxy and Information Statement/Prospectus (the aJoint Proxya), which represented that Heckmann had conducted extensive due diligence on China Water and recommended that Heckmann shareholders vote in favor of the Merger. The defendants solicited votes from stockholders necessary to complete the Merger by means of the Joint Proxy and other public statements. The Companya™s stockholders overwhelmingly 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 afinancial misconduct and the diversion of cash deposits by former management of China Water.a On this news and as revelations in the ensuing months continued to demonstrate the incomplete and misleading information provided to shareholders concerning the Merger and China Water, the Companya™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 and 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.

Plaintiff seeks to recover damages on behalf of all purchasers of Heckmann common stock during the Class Period and/or all persons or entities who held Heckmann common stock as of September 15, 2008 and were eligible to vote on the Merger. The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.

Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ([ http://www.rgrdlaw.com ]) has more information about the firm.