PITTSBURGH- Dec. 22, 2005- LAWFUEL – The Law News Network -Notice is hereby given by the Law Office of Alfred G. Yates Jr., PC that it has commenced a class action lawsuit in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Northwest Airlines Corp. (“Northwest” or the “Company”) (OTC:NWACQ – News) between April 21, 2005 and September 14, 2005 inclusive (the “Class Period”) seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).
If you wish to serve as lead plaintiff, you must move the Court no later than February 21, 2005. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Alfred G. Yates, Jr. at 1-800-391-5164 or via e-mail at [email protected] 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.
The complaint alleges that certain Northwest insiders sold their Northwest securities for proceeds in excess of $30 million while in possession of nonpublic information regarding Northwest’s plans to file for chapter 11 bankruptcy. The complaint alleges, defendants misrepresented that Chapter 11 bankruptcy was “a possibility” and that the Northwest might have “to consider” filing for bankruptcy if certain conditions were not met. The complaint further alleges that filing for Chapter 11 protection was, in fact, a strategy that defendants had adopted at least as early as April 2005 because they viewed bankruptcy reorganization as the only way to dump the crushing burden of Northwest’s pension obligations on the Pension Benefit Guaranty Corp., impose their will upon Northwest’s union to obtain givebacks of at least $1.1 billion, and thereby compete with lower-cost discount carriers such as JetBlue Airways, and so-called “legacy” rivals such as UAL Corp. and US Airways Group Inc., that had already offloaded their pension obligations and otherwise achieved significant savings through bankruptcy reorganization.
The Company, on September 14, 2005, announced that it had filed a voluntary petition for relief under Chapter 11, title 11, United States Code, 11 U.S.C. sections 101, et seq. (the “Bankruptcy Code”). On this news the Company’s shares, which had been trending downward, fell from a closing price of $1.87 on September 14, 2005 to an opening price of $0.86 on September 15, 2005. Plaintiff and other class members who purchased such Northwest securities during the Class Period have suffered significant losses and damages.
The complaint further alleges that, during the months preceding the bankruptcy, insiders sold their Northwest shares to unwitting investors for proceeds in excess of $30 million under highly suspicious circumstances that raise the inference that, at the time of the sales, defendants had material nonpublic information that the Company had already planned to file for bankruptcy and that the filing was imminently expected.
Law Office of Alfred G. Yates Jr., PC, Pittsburgh
Alfred G. Yates, Jr., Esq., 800-391-5164 or 412-391-5164
E-mail: [email protected]