Stockholders Sue New Image: Stockholders filed a class-action suit against New Image Industries Inc. and its officers for allegedly making misleading statements to inflate the price of the company’s stock. The federal lawsuit alleges that New Image, which distributes products ranging from cosmetics to architectural-design devices, defrauded investors who purchased stock between Oct. 23, 1989, and Nov. 2, 1990. The suit contends that three officers of the Canoga Park company sold 100,000 shares of stock last March at a premium when they knew that New Image was having financial problems. (Case No. 90-6345. Filed Nov. 27, 1990.)
A summary of Southern California-related business litigation developments during the past week.
From United Press International