NEW YORK, June 23, 2005 (PRIMEZONE) -- Goodkind Labaton Rudoff & Sucharow LLP has filed a class action lawsuit in the United States District Court for the Eastern District of Virginia, on behalf of shareholders who purchased or otherwise acquired the publicly traded securities of Hilb Rogal & Hobbs Co. ("Hilb Rogal" or the "Company") (NYSE:HRH) between February 14, 2002 and May 26, 2005, inclusive, (the "Class Period"). The lawsuit was filed against Hilb Rogal, Andrew L. Rogal, Martin L. Vaughan III, Timothy J. Korman, Carolyn Jones, Robert W. Blanton Jr. and Robert B. Lockhart ("Defendants").
If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.glrslaw.com/get/?case=HilbRogal
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, Defendants are alleged to have issued a series of false and misleading statements during the Class Period, which failed to disclose that:
(a) the Company was paying or receiving the equivalent of
kickbacks or bribes in connection with placing its clients'
insurance business;
(b) the Company's contingent and/or override commissions were
designed to allow the Company to steer its flow of business
to those insurance carriers which agreed to pay it kickbacks;
(c) the Company's business practices were in direct conflict
of interest with its customers, were fraudulent and illegal,
and could open the Company up to civil and criminal liability,
lost future revenues, tarnished reputation, potential inability
to borrow, and potential loss of customers; and
(d) a substantial portion of the Company's revenues were derived
from the improper commissions, so that the Company's financial
statements were materially inflated at all relevant times.
On May 26, 2005, the Company announced that its Chief Operating Officer, Defendant Robert B. Lockhart, had resigned following a review of the Company's business practices. The internal inquiry, which was commenced in response to numerous states' attorneys general and other legal and regulatory bodies investigations, found that the Company made improper payments out of its Hartford offices in connection with the placement of insurance policies. Shares of Hilb Rogal reacted negatively to the news, falling from $38.20 per share on May 26, 2005 to $33.69 per share on May 27, 2005, on heavy trading volume.
Plaintiffs are represented by the law firm of Goodkind Labaton Rudoff & Sucharow LLP. Goodkind Labaton is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts.
If you bought Hilb Rogal securities between February 14, 2002 and May 26, 2005, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than sixty days from today. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives at or Christopher Keller, Esq. at 800-321-0476.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.