Stockholders’ Suit Against Pinkerton’s Dismissed

A federal district court in Los Angeles has dismissed a class-action suit alleging improper insider trading that was filed against Pinkerton’s Inc. and its top officers.

The suit, filed in June by investors Stanley and Ruth Rintel, contended that the Van Nuys security firm and its two top officers issued misleading financial forecasts to inflate the company’s stock price.

But Robert Vitamante, a Pinkerton’s spokesman, said the court found there wasn’t enough evidence to support the allegations. It was unclear whether the Rintels planned to appeal the ruling. They could not be reached for comment.

In the consolidated class-action complaint, the Rintels contended that Pinkerton’s CEO Thomas W. Wathen and President Albert J. Berger sold more than 48,000 shares of stock before a June 18 announcement that earnings would be significantly below previous projections. Pinkerton’s stock price has been as high as $36 in the past year, but it fell $5.75 to $16 on the day Wathen made the earnings projection in June. Recently, the company’s stock has traded in the $17 to $18 per-share range.