A pair of law firms, Lerach Coughlin Stoia Geller Rudman & Robbins LLP and Brower Piven have commenced class actions in the United States District Court for the Northern District of Texas against Heelys, Inc. The suits were filed on behalf of purchasers of Heelys, Inc. stock issued pursuant or traceable to the “false and misleading Registration Statement filed with the Securities and Exchange Commission” by Heelys in connection with the company's December 2006 IPO.
No class has yet been certified in either action, but the complaint alleges that the Registration Statement used by defendants in connection with the IPO was “misleading in that it represented that Heelys had a viable, well-established business plan and that its tremendous revenue growth and resulting profits were based on sound business and stable sales practices.” Moreover, the Registration Statement failed to disclose the “staggering number of injuries suffered by Heelys' users in the months leading up to the IPO.” The company and certain of its senior executives and directors sold $155 million worth of Heelys stock at $21 per share in the IPO.
