Specifically, an announcement said, the investigation concerns whether administrators breached their fiduciary duties and violated the Employee Retirement Income Security Act (ERISA) by investing assets in company stock when it was not a prudent investment.
According to the announcement, a lawsuit seeking class-action status on behalf of those who purchased the common stock of Schweitzer has been filed in the United States District Court for the Northern District of Georgia and charges that defendants issued materially false and misleading statements regarding the company’s business and financial results. It is alleged that during the class period defendants misrepresented the strength of Schweitzer’s competitive position and concealed problems with the company’s most important customer.
The lawsuit claims that as a result, Schweitzer’s stock traded at artificially inflated prices.
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