Now in Legal Rebels:
Posted Sep 13, 2007 01:12 pm CDT
Several lawsuits filed on behalf of investors who bought stock in Heelys Inc. claim the company hid injuries that had been caused by the shoes with wheels.
The Tex Parte blog reports on one of the suits filed in the Northern District of Texas. It claims the company’s registration statement for its December 2006 initial public offering “failed to disclose the staggering number of injuries suffered by Heelys’ users in the months leading up to the IPO.”
Several law firms have issued press releases announcing investor suits against the company. One press release says Heelys’ stock price fell 45 percent after the company downgraded revenue projections on Aug. 8.
A press release on Heelys’ Web site cites a study that found using the shoes is “significantly safer than bicycling, skateboarding, basketball, soccer and even tennis.”