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Case ID: 5027 | Automotive | 07/16/2008
On March 11, 2008, a motion to appoint certain individuals as lead plaintiffs, lead counsels and for consolidation of all related cases was filed. Just as quickly, a proposed order in regards to appointing lead plaintiffs, lead counsesl and for consolidation of all related cases was entered on March 7, 2008. As a result, an order granting motion to appoint lead plaintiffs and lead counsels was filed by Judge Charles R. Breyer on April 25, 2008.
According to a press release dated January 16, 2008, ShoreTel, certain of its officers and directors, and the Company's underwriters are charged with including, or allowing the inclusion of, materially false and misleading statements in the Registration Statement and Prospectus issued in connection with the IPO, in violation of the Securities Act of 1933. Specifically, the Complaint alleges that following ShoreTel's July 3, 2007 IPO -- which raised gross proceeds of at least $86.3075 million -- investors learned the truth about the Company on January 7, 2008 -- including that the problems which existed at the time of the IPO would result in extremely disappointing results for the third quarter of fiscal 2008 (the period ended December 31, 2007), including much lower than expected revenues and higher than expected costs and expenses. At that time, defendants first belatedly revealed that sales to new customers were substantially lower than expected, and that sales to existing customers was not sufficient to offset these declines. In addition, by this time, it became obvious to investors that the Company did not maintain adequate internal controls, and that a proper due diligence investigation into the Company, by the Underwriters, was not properly carried out prior to the Offering. On this news, on January 7, 2008, over 6.0 million shares of ShoreTel traded -- over 20 times average daily trading volume -- and Company shares plummeted -- falling over 50% to close at $6.02 per share.
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 Automotive Cases of Interest Jackson County Circuit Judge Marco Roldan approved a $33 million dollar settlement, which endeds four years of contentious litigation with Mitsubishi Motors North America Inc., DaimlerChrysler Corp. and DaimlerChrysler Motors Co. LLC of Delaware.
The lawsuits alleged that the the car manufacturers knew that 17-inch rims on four of their models tended to bend under normal driving conditions, causing tire deflation, flats and blowouts. The suits charged that the defendants failed to disclose that information to consumers. Sometimes, class actions provide the only means of curbing companies' fraudulent behavior in the arena of consumer services. The parties have reached a tentative $7.35 million settlement in a class action against Sears, Roebuck and Company on behalf of all persons throughout the United States who purchased the Sears AccuBalance tire balancing service between May 1, 1989, and June 30, 1994. Proof of claims forms must be postmarked no later than November 1, 2003, to be considered valid.
A national class action has been filed in South Carolina against the Kubota Tractor Company. The action is brought on behalf of all U.S. residents or entities (except those residing in Louisiana) who have purchased a Kubota M-8200 or M-9000 tractor within 3 years of February 3, 2004. The action alleges that these tractors contain defective clutch discs and seeks the rescission of the sales of the defective tractors, or in the alternative, the repair and replacement of the clutch discs at no charge to the class members. The action is brought under the Uniform Commercial Code, which is recognized in all states except Louisiana and the laws of negligence. Camden, New Jersey Foulke Management Corporation, which operates a number of car dealerships, has engaged in a series of bait-and-switch sales practices. The practices were so widespread and frequent that a couple filed a class action lawsuit against Foulke. A U.S. district judge recently certified a national class-action lawsuit brought by a Detroit businessman against Illinois-based Caterpillar Inc. over diesel engines the company makes for large yachts. If you are thinking about leasing a vehicle, or don't know if you should lease, please look into the pros and cons very carefully before making your decision. A Florida class action has been filed against auto financing company BMW Financial Services NA, LLC, on behalf of vehicle lessees who allege that the company charged them "taxes" that were actually just hidden fees to cover wear and tear, and excess mileage on the vehicles, in violation of Florida consumer protection laws and the federal Consumer Leasing Act. |
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