, which has slid from about $20 a share two years ago to 80 cents at Friday's close, was trading higher early Monday on news of the pending sale.
The complaint alleges that Delta's officers and directors issued materially false and misleading statements and concealed the following: (a) that the Company was not adequately reserving for its dry hole costs and impairments in violation of Generally Accepted Accounting Principles; (b) that Delta's unproductive assets would hinder its ability to find a buyer for itself or its assets, as the value of the Company's assets was less than the value of its aggregate debt; (c) that the Company had far greater exposure to liquidity concerns than it had previously disclosed; and (d) as a result of the aforementioned, shares of Delta stock
traded at artificially inflated prices.
The board of struggling US carrier Delta Air Lines has agreed to the use of an exception to the New York Stock Exchange (NYSE) shareholder approval policy which will allow its employees and creditors to be given Delta stock
On November 10, 2011, Delta stock
collapsed 65%, to $0.
As a result of defendants' false statements, Delta stock
traded at artificially inflated prices during the Class Period, reaching a high of $11.
Castle also noted that the Company had used essentially all of its tax carryforwards to offset the gain on the sales of Delta stock