Columbus Personal Injury Lawyer - Class Action

Class Action Suit Filed Against Radio Shack

Scott Smith — Thu, 22 Mar 2007 12:29:35 GMT

Radio Shack shareholders filed a securities class action lawsuit because the company issued misleading statements that inflated stock prices. The lawsuit charges Radio Shack Company leaders with falsifying, manipulating and overstating financial results to conceal the true negative conditions of Radio Shack's business. The company stock prices rose from $20.00 per share before the start of the period in question to a high of $35.41 on February 19, 2004. As of March 16, 2007 Radio Shack's shares closed at $26.04.

The lawsuit claims Radio Shack executives implemented artificial inflation accounting principles and then sold more than 500,000 shares of their own stock at an average price of $31.00 per share for proceeds that netted the executives $17 million.

As expected, Radio Shack had no comment.

Originally posted at InjuryBoard by Scott Smith

Class Action Against Arthur Andersen Settles for $73 Million

Scott Smith — Thu, 15 Mar 2007 15:17:05 GMT

Enron Corporation shareholders have settled a class action lawsuit against Arthur Andersen, LLP for $72.5 million as approved by Judge Melinda Harmon of the United States District Court for the Southern District of Texas.

In a related matter, Arthur Andersen was found guilty of criminal charges based upon facts common to the class action. The class action settlement coupled with the six week criminal trial and ten days of jury deliberations resulting in Andersen's conviction for obstructing justice after destroying Enron documents while on notice of the federal investigation sealed the fate of the once large accounting firm.

Andersen now faces up to five years probation plus a $500,000.00 fine on the criminal matter. District Attorney Andrea Weissman said the case sends a signal, "When you expect the police, don't destroy evidence". For Andersen the police was the Securities and Exchange Commission. However the prosecution is not finished with Arthur Andersen. Jurors, when questioned after the verdict, agreed that Nancy Temple was the "corrupt persuader". Temple was the Andersen attorney who sent an October 12 email that reminded executives the firm had a policy to destroy documents.

The criminal verdict will likely be a fatal blow for the 89 year old accounting firm which is now operating as a shadow of its once mighty self. The firm has laid off over 7,000 employees, sold most of its practices in the United States and has lost more than 650 of it's 2,300 public audit clients this year. Nevertheless, Andersen intends to file an appeal once sentencing has concluded on October 11, 2007.

Originally posted at InjuryBoard by Scott Smith

Holocaust Settlement Approved in Class Action

Scott Smith — Mon, 12 Mar 2007 15:40:38 GMT

U.S. District Judge George B. Daniels approved a settlement involving Holocaust victims and their relatives that has lasted approximately ten years. The settlement was entered into with Italian insurance company Assicuraazioni Generali whereby the insurance company would accept new claims until March 31, 2007 after noting it had paid $135 million to settle claims to date. Nonetheless, the settlement does not end for many victims who have claimed reparations for Holocaust atrocities.

Originally posted at InjuryBoard by Scott Smith

Wal-Mart Discrimination Class Action Suit Continues

Scott Smith — Tue, 27 Feb 2007 12:20:51 GMT

A class action against Wal-Mart for major gender discrimination continued in the Northern District of California's courtroom with Judge Martin Jenkins that affects approximately 2 million female employees.

Judge Jenkins ruled for the first time in three years the Plaintiffs would be permitted to take the depositions of former Wal-Mart Executive Thomas Coughlan, III who was second in command at Wal-Mart and Vice Chairman of the Board until he left the company in 2005. Inasmuch as Mr. Coughlan apparently was in failing health, it became necessary to preserve his testimony and conduct his deposition, the Plaintiff lawyers argued. Consequently, the Order from Judge Jenkins signals progress in pursuing the litigation against Wal-Mart and appears to end Wal-Mart's attempt to thwart Plaintiffs' right to discover the basis for the discrimination.

Originally posted at InjuryBoard by Scott Smith