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Case ID: 3337 | Stocks | 04/20/2004
Several class actions have been filed against fast food giant McDonald's Corporation (NYSE:MCD) and certain of its officers and directors by stockholders who purchased the company's common stock between December 14, 2001, and January 22, 2003. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
The action alleges that the defendants misrepresented the state of McDonald's business and future prospects by failing to disclose that hundreds of its restaurants were underperforming and that it had incurred hundreds of millions of dollars in unrecorded asset impairment and other charges. The defendants' scheme began to unravel in September 2002 when the company reported that "comparable sales" (i.e., year-over-year sales comparisons for restaurants that had been open for more than thirteen months) had continued to decline, especially in U.S. and European markets, making it impossible for it to meet its 2002 earnings guidance. On January 23, 2003, the defendants announced that McDonald's had incurred losses of more than $810 million related primarily to the closure of over 700 underperforming restaurants and the write-off of hundreds of millions of dollars of previously capitalized technology costs. Prior to the disclosure of these adverse facts, McDonald's completed fixed-rate debt offerings of at least $900 million at highly favorable interest rates. In addition, the individual defendants, as well as other McDonald's insiders, allegedly sold over 939,000 shares of McDonald's common shares, at or near market highs, generating proceeds of more than $26 million. If you purchased securities issued by McDonald's during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by June 4, 2004. 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 your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve as you in this action, or you may choose to do nothing, and remain in the class as a silent member. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest A class action has been filed against OfficeMax, Inc. (NYSE:OMX), certain of its officers and directors by stockholders who purchased the company's common stock between January 22, 2004 and January 11, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. Adding to the firestorm of litigation surrounding the recall of the pain drug Vioxx, several securities class actions have now been filed against pharmaceutical giant Merck & Co. (NYSE: MRK) and certain of its officers and directors by stockholders who purchased the company’s common stock between October 30, 2003 and September 30, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company’s securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. According to a press release dated April 11, 2008, the class action is brought against Oppenheimer Holdings Inc., Oppenheimer & Co. Inc, Oppenheimer Asset Management and Freedom Investments Inc. (collectively, "Oppenheimer"), in connection with the sale of auction rate securities, auction rate preferred stock, auction market preferred stock, variable rate preferred securities, money market preferred securities, periodic auction rate securities and auction rate bonds (collectively, "Auction Rate Securities").
Several class actions have been filed against Lehman Brothers, Inc., the U.S. Bank Trust National Association, RBC Dain Rauscher, and Banc Of America Securities, LLC, on behalf of all persons who invested in Corporate Backed Trust Certificates, Verizon New York Debenture-Backed Series 2004-1, between January 5 and May 11, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially assigning the value of the certificates. The stockholders seek to recover compensatory damages for the loss of value of their certificates. The market timing scandal is affecting some of the largest mutual funds in the market. Several class actions have been filed against mutual fund manager Massachusetts Financial Services Company, its parent, Sun Life Financial, Inc. (NYSE:SLF) and certain of its officers and directors by all purchasers of shares of the MFS Mutual Funds during the period between December 15, 1998 and December 8, 2003. The actions claim that the defendants violated federal securities laws by allowing market timing sales by certain persons and entities. A class action has been filed against BearingPoint, Inc. (NYSE:BE), certain of its officers and directors by stockholders who purchased the company's common stock between August 14, 2003 and April 20, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. |
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