Shareholder Class Action Filed Against Royal Group Technologies, Limited by the Law Firm of Schiffrin & Barroway, LLP

RADNOR, Pa., Feb. 2  /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:

Notice is hereby given that a class action lawsuit was filed against Royal Group Technologies, Ltd. (NYSE:RYG) ("Royal Group" or the "Company") in the United States District Court for the Southern District of New York on behalf of a class consisting of: (i) all United States citizens and entities that purchased or otherwise acquired the common stock of Royal Group on the New York Stock Exchange ("NYSE") or the Toronto Stock Exchange ("TSE"); and (ii) all foreign persons and entities that purchased or otherwise acquired the common stock of Royal Group on the NYSE between February 24, 2000 and October 18, 2004, inclusive (the "Class Period").

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at .

The complaint charges Royal Group and certain of its officers and directors with violations of the Securities Exchange Act of 1934.  Royal Group is a vertically integrated manufacturer of polymer-based home improvement, consumer and construction products.  More specifically, the Defendants failed to disclose the following materially adverse facts to the market: (1) that Individual Defendants abused their control over the Company to engage in a series of undisclosed related-party transactions and self-dealing transactions, which were never disclosed to shareholders; (2) as a result of this abuse of power, the Individual Defendants reaped substantial personal gains from their dealings; (3) that the undisclosed self-dealing and related- party transactions caused the Company to misappropriate millions of dollars; (4) that the Company lacked adequate controls in place to ensure that related- party transactions were disclosed to the Company's shareholders; and (5) that the Company's financial results were not prepared in accordance with Canadian Generally Accepted Accounting Principles ("Canadian GAAP") or reconciled with US Generally Accepted Accounting Principles ("US GAAP").

On February 25, 2004, Royal Group revealed that it was the subject of an investigation by the Ontario Securities Commission (the "OSC") into the flow of goods and services between the Company and a resort owned by De Zen.  In response to this announcement, Royal Group purportedly organized a so-called Special Committee to conduct an "independent" inquiry into the conduct that the OSC was investigating.  The Special Committee quickly concluded that there was no evidence of wrongdoing.

On October 15, 2004, the Company announced that the Company insiders were the subject of the Royal Canadian Mounted Police's ("RCMP") criminal investigation in connection with their engaging in self-dealing transactions with Royal Group.  Then, on October 18, 2004 (after the close of trading), the Company announced that the Company itself, as well as the Company insiders, were being criminally investigated by the RCMP in connection with the defendants' self-dealing transactions.  As a result of the revelations of the substantial self-dealing transactions by Defendants, shares of Royal Group fell $1.12 per share, or 12.49 percent, on October 18, 2004 (the first day of trading after the disclosure of the RCMP's investigation into the Company), to close at $7.85 per share.

Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country.  Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.  For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/.

If you are a member of the class described above, you may, not later than March 28, 2006 move the Court to serve as lead plaintiff of the class, if you so choose.  A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation.  In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class.  Under certain circumstances, one or more class members may together serve as "lead plaintiff."  Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.  You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.

  CONTACT:  Schiffrin & Barroway, LLP
            Darren J. Check, Esq.
            Richard A. Maniskas, Esq.
            280 King of Prussia Road
            Radnor, PA 19087
            1-888-299-7706 (toll-free) or 1-610-667-7706
            Or by e-mail at 

First Call Analyst: 

FCMN Contact: 

DATASOURCE: Schiffrin & Barroway, LLP



CONTACT:  Schiffrin & Barroway, LLP: Darren J. Check, Esq. or Richard A.

Maniskas, Esq., [phone], [phone] or 



Web site:  http://www.sbclasslaw.com/ 

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