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Eaton Corporation PLC (NYSE: ETN)

Securities Class Action

Overview
  • Date:
  • 7/26/2016
  • Company Name:
  • Eaton Corporation PLC
  • Stock Symbol:
  • ETN
  • Class Period:
  • FROM 11/13/2013 TO 7/28/2014
  • Status:
  • Closed/Complete
  • Court:
  • U.S. District Court: Southern District of New York

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NEW YORK, July 26, 2016 – Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who acquired Eaton Corporation PLC (NYSE: ETN) securities between November 13, 2013 and July 28, 2014 (the “Class Period”).

Eaton is a manufacturer of engineered products marketed to customers in the industrial, agricultural, construction, aerospace, and vehicle markets.  For most of its 100 year history, Eaton primarily was a vehicle component manufacturer.  Since 2008, however, the company has been making strategic shifts away from its vehicle business, while growing its electrical component businesses.

In 2012, the company engaged in a merger with the Irish-headquartered Cooper Industries plc., which reincorporated the company in Ireland.  Following the merger, and during the Class Period, in response to questions from securities analysts about the effect of the merger on Eaton’s ability to spin-off its business, Eaton executives falsely assured investors and the market of the continued feasibility of divesting the company’s automobile-part manufacturing business on a tax-free basis.  This prospect was key to investors’ and analysts’ ability to value the company.  As a result, Eaton and its executives artificially inflated the price of Eaton stock.

On July 29, 2014, Eaton Chief Executive Officer Alexander M. Cutler finally informed investors that, contrary to the company’s prior assurances, Eaton could not feasibly divest its vehicle business until late 2017 due to tax-law restrictions related to the Merger with Cooper.  Defendant Cutler further revealed that the Company had been “well aware” of these restrictions “all along.”  This disclosure caused a material decline in the price of Eaton stock.

If you acquired Eaton securities during the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters please contact Melissa A. Fortunato, Esq. by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out the contact form below. There is no cost or obligation to you.

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