Investors Blame Caterpillar Execs For $580M Post-Merger Loss

Law360, New York (March 29, 2013, 6:46 PM EDT) -- A putative class of Caterpillar Inc. investors launched a derivative class action Tuesday alleging the company breached its fiduciary duty with last year's $690 million acquisition of Chinese mining equipment company ERA Mining Machinery Ltd. by failing to disclose accounting errors at a subsidiary of the company.

The shareholders claim a group of Caterpillar executives made false statements about ERA Mining Machinery's profits that cost the company $580 million after it announced earlier this year that an internal investigation had uncovered “deliberate, multi-year coordinated accounting misconduct”...
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