Jarden might have misrepresented the business prospects of Holmes Group during Jarden's acquisition of Holmes Group, while the CEO and CFO sold personal shares while the Jarden's stock price was artificially inflated.
Insider Selling/Undisclosed Related Party Transactions
Merger Gone Bad
Product or Service
This is a securities fraud class action lawsuit against Jarden Corporation and its CEO and CFO.
Jarden maufactrures consumer products. It grew through an aggressive series of acquisitions. In 2005, Jarden acquired the Holmes Group, a private company that also sold consumer goods.
This class action lawsuit stems from the Holmes Group acquisition. It asserts that the Jarden's CEO knowingly misrepresented the business situation and potential of the Holmes Group, Inc. when that company was acquired by Jarden at the beginning of the Class Period. This caused the stock to rise substantially, triggering the personal benefits to the CEO.
On January 11, 2006 Jarden announced that Holmes' profit margins and product mix were not what the market had been led to expect. On this news, Jarden's stock fell substantially.
Name (Stock Symbol)
Jarden Corporation (JAH)
Jarden Corporation engages in the manufacture, sourcing, marketing, and distribution of consumer products worldwide.
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