New Class Action Suit Filed Against Royal Group Technologies
31 January 2006 - 5:50AM
PR Newswire (US)
TORONTO, Jan. 30 /PRNewswire-FirstCall/ -- Royal Group Technologies
Limited (Royal Group or the company) (RYG.SV - TSX, RYG - NYSE)
today announced that it has become aware of a putative class action
shareholder lawsuit filed against Royal Group and certain of its
former directors and officers in the United States District Court
for the Southern District of New York on behalf of a class
consisting of all United States citizens and entities that
purchased or otherwise acquired Royal Group's common stock and all
foreign persons or entities that purchased or otherwise acquired
Royal Group's common stock on the New York Stock Exchange. The
putative class period in the complaint is February 24, 2000 through
October 18, 2004. Royal Group understands that the complaint
alleges, among other things, that the defendants failed to disclose
certain related-party transactions in violation of U.S. securities
laws. The factual allegations in the suit are substantively similar
to the allegations in a prior lawsuit in the same Court that the
Court dismissed without prejudice on November 21, 2005 on the
grounds that Canadian courts would provide a more convenient and
appropriate forum. The company has not yet been served with a copy
of the complaint. Royal Group will not comment on these or any
similar lawsuits that may be filed against the company, but will
deal with them through the appropriate legal process. Royal Group
Technologies Royal Group Technologies is a leading producer of
innovative, attractive, durable, and low-maintenance home
improvement and building products, which are primarily utilized in
both the renovation and new construction sectors of the North
American construction industry. Royal Group is the recipient of
several industry awards for product innovation. The company has
manufacturing operations located throughout North America in order
to provide industry-leading service to its extensive customer
network. Additional investment information is available on Royal
Group's web site at http://www.royalgrouptech.com/ under the
"Investor Relations" section. The information in this document
contains certain forward-looking statements with respect to Royal
Group Technologies Limited, its subsidiaries and affiliates. These
statements are often, but not always made through the use of words
or phrases such as "expect", "should continue", "continue",
"believe", "anticipate", "suggest", "estimate", "contemplate",
"target", "plan", "budget", "may", "will", "schedule" and "intend"
or similar formulations. By their nature, these forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management, are
inherently subject to significant, known and unknown, business,
economic, competitive and other risks, uncertainties and other
factors affecting Royal specifically or its industry generally that
could cause actual performance, achievements and financial results
to differ materially from those contemplated by the forward-looking
statements. These risks and uncertainties include the ongoing
shareholder value maximization process and its outcome; the ongoing
internal review and investigations by the Audit Committee of the
Board of Directors and its outcome; fluctuations in the level of
renovation, remodeling and construction activity; changes in
product costs and pricing; an inability to achieve or delays in
achieving savings related to the cost reductions or increases in
revenues related to sales price increases; the sufficiency of our
restructuring activities, including the potential for higher actual
costs to be incurred in connection with restructuring activities
compared to the estimated costs of such actions; the ability to
recruit and retain qualified employees; the level of outstanding
debt and our current debt ratings; Royal's ability to maintain
adequate liquidity and refinance its debt structure by December 31,
2006, the expiry date of its current bank credit facility; the
ability to meet the financial covenants in our credit facilities;
changes in product mix; the growth rate of the markets into which
Royal's products are sold; market acceptance and demand for Royal's
products; changes in availability or prices for raw materials;
pricing pressures resulting from competition; difficulty in
developing and introducing new products; failure to penetrate new
markets effectively; the effect on foreign operations of currency
fluctuations, tariffs, nationalization, exchange controls,
limitations on foreign investment in local business and other
political, economic and regulatory risks; difficulty in preserving
proprietary technology; adverse resolution of any litigation,
investigations, administrative and regulatory matters, intellectual
property disputes, or similar matters; changes in securities or
environmental laws, rules and regulations; currency risk exposure
and other risks described from time to time in publicly filed
disclosure documents and securities commission reports of Royal
Group Technologies Limited and its subsidiaries and affiliates. In
view of these uncertainties we caution readers not to place undue
reliance on these forward-looking statements. Statements made in
this document are made as of January 30, 2006 and Royal disclaims
any intention or obligation to update or revise any statements made
herein, whether as a result of new information, future events or
otherwise. DATASOURCE: Royal Group Technologies Limited CONTACT:
Mark Badger, Vice President of Marketing and Corporate
Communications, Royal Group Technologies Limited, Phone (905)
264-0701
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