Honeywell Is Sued Over Bond Sale
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Eight investment funds in the Los Angeles-based Capital Group family have sued Honeywell International Inc., saying fraudulent financial projections in a 1997 bond sale cost them more than $130 million.
Investors purchased the bonds issued by Florida-based Breed Technologies Inc. based on “false and misleading” statements from AlliedSignal Inc., the lawsuit claims. AlliedSignal acquired Honeywell Inc. in 1999 and changed its name to Honeywell International Inc. Breed filed for bankruptcy in 1999, reorganizing as Key Safety Systems.
Breed, a maker of automotive air bags, issued the bonds to finance the 1997 acquisition of AlliedSignal’s Safety Restraints System, according to the suit.
The lawsuit was filed Tuesday in Los Angeles County Superior Court by six investment funds managed by Capital Research & Management Co. and two funds managed by Capital Guardian Trust Co. Both companies are units of Capital Group.
Spokesman Robert Ferris said Honeywell lawyers believed the suit duplicated a similar complaint filed and dismissed in federal court in New York.
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