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 Technologies, Inc. (“Resideo” or the “Company”) 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., the 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 Subsequent disclosures revealed that Resideo had outdated and failing product lines, as well as supply chain, corporate governance and value engineering problems.
The plaintiffs filed a Consolidated Amended Complaint (“Complaint”) on April 10, 2020 and the 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 the defendants’ motion on March 30, 2021, finding that the Complaint sufficiently alleged claims under the federal securities laws.
On July 27, 2021, the defendants entered into a binding agreement in principle with Entwistle & Cappucci and its co-counsel to settle the pending securities class action. The settlement calls for a payment of $55 million in resolution of claims asserted against Resideo and all other defendants. The plaintiffs filed a motion to preliminarily approve the settlement on August 18, 2021. The Court granted the motion on October 21, 2021 and scheduled a final approval hearing for January 27, 2022. On April 13, 2022, the Court issued an order approving the settlement, plan of allocation and attorney’s fees and expenses, among other relief.
Class members that submit proofs of claim are eligible to receive payment from the common fund, pro rata, based upon their recognized loss calculated under the plan of allocation.
Additional information concerning the settlement is available at: https://www.ResideoTechnologiesSettlement.com.
To view the relevant documents in this matter, please use the following links:
Consolidated Amended Complaint
Order Denying Motion to Dismiss
Stipulation and Agreement of Settlement
Order Granting Plaintiffs’ Motion for Preliminary Approval of Class Action Settlement
Notice of Pendency and Proposed Settlement of Class Action and Motion for Attorneys’ Fees and Expenses