Shareholder Class Action Filed Against Heckmann Corporation by the Law Firm of Barroway Topaz Kessler Meltzer & Check, LLP

RADNOR, Pa., May 6 /PRNewswire/ -- The following statement was issued today by the law firm of Barroway Topaz Kessler Meltzer & Check, LLP:

Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Delaware on behalf of all persons or entities (1) who held shares of Heckmann Corporation (NYSE: HEK) ("Heckmann" or the "Company") as of September 15, 2008 and were eligible to vote at the Company's special meeting held on October 30, 2008 with respect to the Company's acquisition of China Water and Drinks, Inc. ("China Water") (the "Merger") and (2) who purchased or otherwise acquired Heckmann securities between October 2, 2008 and May 8, 2009, inclusive (the "Class Period"), excluding any securities of Heckmann acquired in exchange for securities of China Water pursuant to the Merger.  

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Barroway Topaz Kessler Meltzer & Check, LLP (Darren J. Check, Esq. or Seamus Kaskela, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at [email protected].

Heckmann is a holding company originally organized as a special purpose acquisition company for the purpose of acquiring or acquiring control of one or more operating businesses through a merger, capital stock exchange, asset or stock acquisition, exchangeable share transaction or other similar business combination.  On May 20, 2008, the Defendants announced that the Company had entered into an agreement to acquire China Water for an aggregate purchase price of $625 million.  In order to consummate the Merger - which required the vote of the majority of Heckmann's public stockholders - the Defendants issued a Joint Proxy on October 2, 2008 (the "Joint Proxy") which solicited the approval of Heckmann's stockholders of the transaction.  

The Complaint alleges that the Joint Proxy contained material misstatements and omitted material information.  In particular, the Defendants recommended that shareholders approve the transaction because China Water was as an attractive acquisition target that would provide Heckmann stockholders "with an opportunity to merge with, and participate in, a company with significant growth potential."  In support of this recommendation, the Joint Proxy contained detailed reported, pro forma and projected financial data for Heckmann and China Water which was purportedly the product of Heckmann's "extensive due diligence review of China Water and its business and operations."  These statements were materially misleading and omitted material information regarding the value of China Water's assets and its financial condition.  As a result of the material misstatements and omissions in the Joint Proxy, the Merger was overwhelmingly approved by the Company's stockholders.

Investors began learning about the true financial condition of China Water beginning on May 8, 2009 when Heckmann disclosed financial results for the first quarter of 2009 and disclosed that the Company had recorded a net loss for the first quarter of $186.2 million, or $1.69 per share, which included a $184.0 million non-cash goodwill impairment charge associated with the assets of China Water.  Revelations in the ensuing months continued to demonstrate the incomplete and misleading information provided to stockholders in connection with the Merger and the Merger's harmful effect on the Company.  

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm Barroway Topaz Kessler Meltzer & Check, LLP which prosecutes class actions in both state and federal courts throughout the country.  Barroway Topaz Kessler Meltzer & Check, LLP is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.

For more information about Barroway Topaz Kessler Meltzer & Check, or for additional information about participating in this action, please visit www.btkmc.com.

If you are a member of the class described above, you may, not later than July 6, 2010, move the Court to serve as lead plaintiff of the class, if you so choose.  A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.  Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.  

SOURCE Barroway Topaz Kessler Meltzer & Check, LLP

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED