LAWSUITS NEWS & LEGAL INFORMATION
Business Fraud
Toronto, Canada: (Oct-16-07) A shareholders lawsuit was brought against Royal Group Technologies Inc., the Canadian maker of building products that was acquired by Georgia Gulf Corp. in 2006, alleging that company directors abused their powers and acted unethically. The suit claimed that a company owned by Chairman Vic De Zen, bought land north of Toronto in 1998 for C$20.9 million and immediately after closing, Royal Group bought the company for C$27.4 million, giving De Zen a C$6.5 million profit that should have gone to the shareholders. De Zen was fired in 2004.
As part of a settlement reached, Royal Group Technologies agreed to pay $9.2 million to resolve the allegations. Sources stated that the settlement still needs to be approved by judges in Ontario and New York. Company officials confirmed that following an October 2004 disclosure that authorities were investigating the company, Royal Group shares fell 13%, harming the shareholders position. [BLOOMBERG: BUSINESS FRAUD]
Published on Oct-17-07
As part of a settlement reached, Royal Group Technologies agreed to pay $9.2 million to resolve the allegations. Sources stated that the settlement still needs to be approved by judges in Ontario and New York. Company officials confirmed that following an October 2004 disclosure that authorities were investigating the company, Royal Group shares fell 13%, harming the shareholders position. [BLOOMBERG: BUSINESS FRAUD]
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