In re Resideo Technologies, Inc. Sec. Litig., No. 19-02863 (WMW/KMM) (D. Minn.)
On January 7, 2020, E&C filed a securities class action complaint in the District of Minnesota against Resideo and certain of its senior executives asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The complaint alleges that, following the Company’s spin-off from Honeywell International Inc., Defendants falsely portrayed Resideo as a demonstrably well-managed, favorably positioned market leader in the smart home product space with a robust and efficient supply chain and deep bench of talent and expertise. Subsequent disclosures revealed that Resideo had outdated and failing product lines, as well as supply chain, corporate governance and value engineering problems.
Plaintiffs filed a Consolidated Amended Complaint on April 10, 2020 and Defendants moved to dismiss the complaint on July 10, 2020. Oral argument regarding the motion to dismiss was held before the Honorable Wilhelmina M. Wright on December 1, 2020. The Court entered an order denying Defendants’ motion to dismiss on March 30, 2021, finding that the complaint sufficiently alleged claims under the federal securities laws.
On July 27, 2021, the Company entered into a binding agreement in principle with E&C and co-lead counsel to settle the pending securities class action. The proposed settlement calls for a payment of $55 million in resolution of claims asserted against Resideo and all other defendants. Plaintiffs filed preliminary approval papers on August 18, 2021. The Court granted Plaintiffs’ preliminary approval motion on October 21, 2021 and scheduled a final approval hearing for January 27, 2022 at 9:00 a.m. in the District of Minnesota. The hearing will be held video-phonically via Zoom. You are invited to attend the hearing telephonically. Instructions for attending can be found below and on the settlement website maintained by the Claims Administrator: https://www.resideotechnologiessettlement.com.
To view the relevant documents in this matter, please use the following links: