Stockholders sue Collins & Aikman

Two U.S.-based law firms have filed class-action lawsuits on behalf of shareholders against auto parts supplier Collins & Aikman, according to a report published in the Detroit Free Press. The suits accuse the company of misleading investors.
Milberg Weiss Hynes & Lerach, a national law firm which specializes in filing shareholder lawsuits, has filed a suit accusing Collins & Aikman and its various owners and management of "issuing a series of materially false and misleading statements" that artificially drove up the company’s stock, the report said. A similar lawsuit was filed by the law firm of Charles J. Piven, based in Baltimore. Both suits were files in a Michigan U.S. District Court.
A spokesperson for Collins & Aikman said the lawsuits were "without merit."