Class-Action Suit Is Filed Against EECO Directors

EECO Inc., the computer parts manufacturer that filed for bankruptcy protection earlier this year, reported Thursday that two of its shareholders have filed a class-action lawsuit against company directors and certain past and present executives.

The lawsuit, filed in federal court, alleges that EECO published false and misleading reports concerning the company’s operating and financial problems between Dec. 21, 1987, and May 2, 1990, EECO said in a statement. According to the statement, the suit alleges that the company’s published reports violated federal securities laws.

The statement did not name the shareholders who filed the suit. EECO officials did not return phone calls. Attorneys for the plaintiffs also could not be reached for comment.

In the statement, EECO Chairman Robert B. Bonney said that the lawsuit “is without merit and that the defendants intend to vigorously contest the suit.” The Santa Ana company was not named as a defendant in the suit.

EECO, a maker of electronic key pads, electromechanical switches and hotel computer systems, filed for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code in May.