Class Action Suits Filed Against Royal Group Technologies
December 15 2004 - 6:47PM
PR Newswire (US)
Class Action Suits Filed Against Royal Group Technologies TORONTO,
Dec. 15 /PRNewswire-FirstCall/ -- Royal Group Technologies Limited
(Royal Group or the company) (RYG.SV-TSX, RYG-NYSE) today announced
that it has become aware that three law firms in the United States
have each announced that it has today filed a class action law suit
alleging violations of the U.S. Securities and Exchange Act of
1934. Royal Group has not been served with copies of any of the
suits and therefore has not reviewed the allegations being made.
Royal Group stated that it will not comment on these or any similar
suits that may be filed against the company, but will deal with
them through the appropriate legal process. "The filing of such
class action suits has become a kind of standard procedure when
companies incur difficulties with a consequent adverse impact on
their share price," noted V. James Sardo, Royal Group's interim
Chief Executive Officer and Chairman of its Special Committee of
Independent Directors. "We do not expect these suits to have any
impact on Royal Group's operations and business plans." Royal Group
Technologies Limited is a manufacturer of innovative, polymer-based
building products, serving the home improvement, consumer and
construction sectors of the market. The Company has extensive
vertical integration, with operations dedicated to provision of
materials, machinery, tooling, real estate, and distribution
services to its plants producing finished products. Royal Group's
manufacturing facilities are primarily located throughout North
America, with international operations in South America, Europe,
and Asia. Additional investment information is available on Royal
Group's web site at http://www.royalgrouptech.com/ under the
"Investor Relations" section. The information in this document
contains certain forward-looking statements with respect to Royal
Group Technologies Limited, its subsidiaries and affiliates. These
statements are often, but not always made through the use of words
or phrases such as "expect", "should continue", "continue",
"believe", "anticipate", "estimate", "contemplate", "target",
"plan", "budget", "may", "will", "schedule" and "intend" or similar
formulations. By their nature, these forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable by management, are inherently subject
to significant, known and unknown, business, economic, competitive
and other risks, uncertainties and other factors affecting Royal
specifically or its industry generally that could cause actual
performance, achievements and financial results to differ
materially from those contemplated by the forward-looking
statements. These risks and uncertainties include the outcome of
the ongoing internal review and investigations by the Special
Committee of the Board of Directors; fluctuations in the level of
renovation, remodeling and construction activity; changes in
product costs and pricing; an inability to achieve or delays in
achieving savings related to the cost reductions or increases in
revenues related to sales price increases; the sufficiency of our
restructuring activities, including the potential for higher actual
costs to be incurred in connection with restructuring activities
compared to the estimated costs of such actions; the ability to
recruit and retain qualified employees; the level of outstanding
debt and our current debt ratings; the ability to meet the
financial covenants in our credit facilities; the ability to
successfully replace our syndicated credit facility; changes in
product mix; the growth rate of the markets into which Royal's
products are sold; market acceptance and demand for Royal's
products; changes in availability or prices for raw materials;
pricing pressures resulting from competition; difficulty in
developing and introducing new products; failure to penetrate new
markets effectively; the effect on foreign operations of currency
fluctuations, tariffs, nationalization, exchange controls,
limitations on foreign investment in local business and other
political, economic and regulatory risks; difficulty in preserving
proprietary technology; adverse resolution of any litigation,
investigations, administrative and regulatory matters, intellectual
property disputes, or similar matters; changes in securities or
environmental laws, rules and regulations; currency risk exposure
and other risks described from time to time in publicly filed
disclosure documents and securities commission reports of Royal
Group Technologies Limited and its subsidiaries and affiliates. In
view of these uncertainties we caution readers not to place undue
reliance on these forward-looking statements. Statements made in
this document are made as of December 15, 2004 and Royal disclaims
any intention or obligation to update or revise any statements made
herein, whether as a result of new information, future events or
otherwise. DATASOURCE: Royal Group Technologies Limited CONTACT:
James Sardo, Chairman of the Special Committee of Independent
Directors, Royal Group Technologies Limited, (905) 264-0701 or
Richard W. Wertheim, Wertheim + Company Inc., (416) 594-1600, (416)
518-8479 (cell)
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