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Hausfeld Defeats Defendants’ Motion to Dismiss in HearUSA, Inc. Securities Litigation Pending in the District of New Jersey
Hausfeld LLP, representing an investment fund and stockholder of HearUSA, Inc. in a lawsuit alleging securities fraud by Siemens Hearing Instruments, Inc., has defeated Siemens’ motion to dismiss the complaint.
The Complaint alleged that Hausfeld’s client and the putative class experienced a substantial loss selling HearUSA, Inc. stock after Siemens Hearing Instruments, Inc. issued statements implying that HearUSA, Inc. was essentially worthless and stating that Siemens may acquire HearUSA for no consideration to stockholders. Soon after issuing these statements, Siemens Hearing Instruments, Inc. purchased HearUSA.
On July 6, 2012, Siemens moved to dismiss the Complaint, arguing that the Complaint failed to identify false statements or omissions and did not allege a strong inference of scienter.
On February 19, 2013, U.S. District Court Judge Susan D. Wigenton denied Defendants’ motion to dismiss the 10(b) claim on behalf of the putative class and Section 18 claim on behalf of Hausfeld’s client, stating that the complaint adequately pled material misstatements and omissions and a strong inference of scienter with respect to Siemens Hearing Instruments, Inc.
Hausfeld LLP is the court appointed lead counsel for the proposed class of sellers of HearUSA stock in this action. The proposed class covers those persons who sold or otherwise disposed of HearUSA common stock between January 18, 2011 and July 31, 2011.
Practice Areas: Securities and Financial Services