CHICAGO (Legal Newsline) – Two pension funds allege they suffered damages because of a company's fraudulent practices.
St. Lucie County Fire District Firefighters’ Pension Trust Fund and Boynton Beach Firefighters’ Pension Fund filed a complaint in the U.S. District Court for the Northern District of Illinois, Eastern Division against
Stericycle Inc., Merrill Lynch, Fenner & Smith Inc. and others, alleging that they violated the Securities and Exchange Act.
According to the complaint, the plaintiffs allege that they suffered damages for paying more for their improperly inflated stock price. The plaintiffs say the defendants allegedly repeatedly touted and misrepresented the company’s financial health and growth prospects, and concealed the fact that a material portion of Stericycle’s revenue was derived from fraudulent overcharging of its customers.
They say the defendants misled them by not disclosing the true extent of the company’s underlying issues.
The plaintiffs request a trial by jury and seek an award for compensatory damages, attorneys' fees and expert fees, and such other relief as the court may deem just and proper. They are represented by Avi Josefson of Bernstein Litowitz Berger & Grossmann LLP in Chicago and Gerald H. Silk and John Vielandi of Bernstein Litowitz Berger & Grossmann LLP in New York.
U.S. District Court for the Northern District of Illinois, Eastern Division Case number 1:16-cv-07145