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Case ID: 5055 | Stocks | 07/17/2008
The judge ordered all similar cases to be consolidated on June 4, 2008. Lead Plaintiffs, Chicago Laborers' Group and their choice of lead counsel were approved on June 20, 2008.
On April 30, 2008, a motion to consolidate cases was filed. Just as quickly, several motions to approve and appoint lead plaintiffs and lead counsels were filed by different groups and individuals on May 09, 2008. At the same time, a first motion to consolidate cases and to appoint lead plaintiffs and counsels was filed by FRPT Investor Group on May 09, 2008. The judge granted consolidation on June 10, 2008 but has allowed 90 days for motions to appoint lead plaintiffs and lead counsel. According to a press release dated March 10, 2008, the complaint charges Force Protection and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Force Protection and its subsidiaries engage in the manufacture of ballistic and blast protected vehicles. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business, financial results and prospects. Specifically, defendants continually boasted Force Protection’s dominance in the Mine Resistant Ambush Protected (“MRAP”) market was due to its superior product design and rapid delivery rates. However, in a report dated June 27, 2007, the Inspector General of the Department of Defense questioned both of these claims and criticized the awarding of contracts to Force Protection on a sole source basis and without competitive bidding. Then, on February 29, 2008, after the market closed, Force Protection announced it would have to delay the release of its 2007 Form 10-K and restate its Form 10-Q for the period ended September 30, 2007. On this news, Force Protection’s stock collapsed to close at $3.58 per share on March 3, 2008, a one-day decline of 13% and an 88% decline from the Class Period high of $30.27 per share, prior to when Force Protection’s problems began to be revealed. According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) as a result of the Company’s ongoing problems in meeting contractual delivery deadlines, the Company would have trouble competing in the MRAP market; (b) in audit reports, the Defense Contract Audit Agency had been critical of the Company’s finances and financial accounting system, which threatened the Company’s eligibility to compete for government contracts; (c) the Company’s accounting department suffered from material weaknesses and deficiencies and lacked the necessary staff and resources to perform its required functions; (d) contrary to the representations contained in the Company’s SEC filings, the Company’s internal controls were inadequate and easily manipulated; (e) the Company lacked effective internal controls in its financial reporting process, required to enable it to properly analyze and/or estimate Force Protection’s future financial and operational performance; and (f) defendants had caused the Company to falsely report at least its third quarter 2007 financial results.
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 Kahn Gauthier Swick, LLC ("KGS") announces that shareholders of Shuffle Master, Inc. ("Shuffle Master" or the "Company") (Nasdaq:SHFL) who purchased shares of the Company between December 22, 2006 and March 12, 2007 (the "Class Period"), have 59 days, or until August 3, 2007, to move for appointment as Lead Plaintiff in a securities fraud class action lawsuit currently pending in the United States District Court for the District of Nevada. No class has yet been certified in this action.
Mergers often strengthen a corporation, but sometimes hurt stockholders and the public. The class has been certified in an action filed against the Minnesota Corn Processors (MCP) Board of Directors on behalf of all individuals holding MCP Class A shares prior to September 5, 2002, and the who had the right to vote in connection with the 2002 $400 million merger between MCP and Archer Daniels Midland (ADM). The action alleges that the Board hid the fact that they were profiting from the merger illegally while shareholders would only make a fraction of what their shares were worth in the transaction. McKesson Corporation, a drug distributor embroiled in an accounting-fraud case since 1999, announced on January 12, 2005 that it has agreed to pay $960 million to settle a class-action shareholder lawsuit. The lawsuit was filed in April 1999, shortly after the company disclosed that its software subsidiary, HBOC, had prematurely booked $40 million in revenue, forcing an earnings restatement. On the day of the disclosure, McKesson's shares plummeted 47%, losing $8.6 billion in value. The settlement will not become final until it has been reviewed and approved by the court at a fairness hearing. No hearing has been scheduled at this time. The parties have reached a proposed $5 million settlement in a class action against First Union National Bank on behalf of investors in Cyprus Funds, a company that ran a multimillion-dollar securities investment scheme. First Union was accused of aiding and abetting the fraud.
A class action has been filed against Direct General Corporation (NasdaqNM:DRCT), a financial services holding company company and certain of its officers and directors by stockholders who purchased the company's common stock between August 11, 2003 and January 26, 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. A class action has been filed against AuthentiDate Holding Corp. (NasdaqNM:ADAT), certain of its officers and directors by stockholders who purchased the company's common stock between September 29, 2003 and May 27, 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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