Courtesy Market Watch
SAN DIEGO, Mar 14, 2010 (BUSINESS WIRE) -- Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of state law by certain officers and directors at Schweitzer-Mauduit International, Inc. ("Schweitzer " or the "Company") /quotes/comstock/13*!swm/quotes/nls/swm (SWM 45.88, +0.89, +1.98%) . Schweitzer manufactures and sells paper and reconstituted tobacco products to the tobacco industry, as well as specialized paper products for use in other applications. The Company was founded in 1995 and is headquartered in Alpharetta, Georgia.
Robbins Umeda LLP's investigation concerns whether the Company's directors and officers caused the Company to issue materially false and misleading statements. Specifically, the investigation will determine whether these directors and officers misrepresented the strength of Schweitzer's competitive position in the United States and its ability to withstand European competition.
The alleged material misstatements and omissions may have caused Schweitzer's stock to trade at artificially inflated prices, reaching a high of $83.63 per share on January 14, 2010. It appears that inflation in the Company's stock price allowed them to complete a secondary offering of 1.8 million shares of its stock at $60 per share in November 2009.
On February 10, 2010, after the market closed, Schweitzer reported its fourth quarter and 2009 financial results, as well as the filing of a patent infringement action alleging that certain foreign companies infringed on Schweitzer's U.S. patent. Upon this news, Schweitzer's stock fell $23.58 per share to close at $46.65 per share on February 11, 2010, a one day decline of nearly 34%.
A lawsuit alleging violations of the Securities Exchange Act of 1934 has been filed on behalf of shareholders who purchased or otherwise acquired Schweitzer stock between August 5, 2009 and February 10, 2010 against the Company and certain of its officers. Securities class actions like this can potentially cause additional damage to the Company.
If you purchased your Schweitzer stock prior to August 5, 2009, continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Lauren Levi at 800-350-6003 or by e-mail at llevi@robbinsumeda.com.
Robbins Umeda LLP is a California-based law firm, which has significant experience representing investors in shareholder derivative actions, securities fraud class actions, and merger-related shareholder class actions. For more information about the firm, please go to http://www.robbinsumeda.com.
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