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Case ID: 4711 | Stocks | 03/20/2006
A class action has been filed against Coca-Cola Enterprises, Inc. (CCE), certain of its officers and directors by stockholders who purchased the company's common stock between October 15, 2003 and July 28, 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 February 16, 2006, the Complaint alleges that the Defendants violated Sections 10(b), 20(a) and 20A of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 10b-5 promulgated thereunder, by failing to disclose to the investing public that CCE had a longstanding and systemic practice of channel stuffing -- forcing extra product onto its customers to boost revenue. CCE's reported financial results and future earnings prospects were materially misleading without disclosure about CCE's channel stuffing practices and how those practices affected CCE's financial condition. The complaint also alleges that CCE's channel stuffing resulted in the improper recognition of revenue in violation of GAAP. While defendants were misrepresenting CCE's financial condition, and CCE's stock price climbed through the Class Period, the individual defendants engaged in substantial insider trading. For example, Defendant Johnston sold over $172 million worth of his CCE stock, representing 19.52% of his holdings or 6,481,082 shares. Defendant Mannelly sold approximately 372,396 shares of his CCE common stock, with proceeds totaling approximately $9,353,964, and Defendant Van Houten sold approximately 225,953 shares of CCE common stock, for proceeds totaling approximately $6,123,757. Other individual defendants sold substantial amounts of CCE stock as well. The complaint further alleges that on or around July 29, 2004, CCE made a partial corrective disclosure regarding CCE's true financial condition and diminished future earnings prospects. Reacting to CCE's disclosures, and the individual defendants' insider trading activities, investors hammered CCE's stock price on record trading volumes. Thus, by the close of business on July 29, CCE's stock price fell by approximately 25% or $5 per share, erasing nearly $3.1 billion of CCE's then $12.5 billion market capitalization. If you bought Coca-Cola Enterprises, Inc. securities between October 15, 2003 and July 28, 2004, inclusive, and would like to obtain information about the Coca-Cola Enterprises, Inc. lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney. 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 Several class actions have been filed against technology company Lattice Semiconductor Corporation (Nasdaq:LSCC), and certain of its officers and directors by stockholders who purchased the company's common stock between April 22, 2003, and April 19, 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 inflating the price of the company's securities. On March 11, 2008, a motion to appoint certain individual as lead plaintiff and to appoint Abraham Fruchter & Twersky LLP as lead counsel was filed. As a result, on March 14, 2007, the Court granted motion to name a certain individual as Lead Plaintiff and appointing Abraham Fruchter & Twersky LLP as Lead Counsel. An Amended Class Action Complaint For Violation Of Federal Securities Law was filed on March 24, 2008. On April 3, 2008, an order denying the motion for undertaking and directing amendment of the caption was denied as moot. The defendant filed motion to dismiss the Amended Complaint on April 25, 2008, which is currently pending before the court.
A class action has been filed against Leadis Technology, Inc. (NasdaqNM:LDIS), certain of its officers and directors by stockholders who purchased the company's common stock between June 16, 2004 and October 22, 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. A class action has been filed against Great Wolf Resorts Inc. (WOLF), certain of its officers and directors by stockholders who purchased the company's common stock between December 14, 2004 and July 28, 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. Two class action cases have been filed in San Diego Superior Court against strip mall developer Price Legacy Corporation (Nasdaq: PLRE) and certain of its officers and directors by stockholders. The actions claim that the defendants breached their fiduciary duty to stockholders in a recent merger with PL Retail LLC. Specifically, the stockholders claim that PL Retail did not pay fair value when it acquired Price Legacy and that Price legacy should have held out for a better price. On March 31, 2008, several motions were filed by different groups and individuals to be appointed as lead plaintiffs, lead counsels as well as to consolidate cases. A response to the above mentioned motion was filed on April 17, 2008 by SLM Venture. Just as quickly, a memorandum of law in opposition of consolidating cases, to appoint lead plaintiffs and counsels was filed by Sheet Metal Workers Pension Fund Trust at the same time. |
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