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Class Action Filed Against Former, Current A&P Execs
Legal Network |
2011/09/19 15:54
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A class action has been filed in the U.S. District Court for the District of New Jersey on behalf of purchasers of the securities of the Great Atlantic & Pacific Tea Co. Inc. (A&P) for the period between July 23, 2009, and Dec. 10, 2010. The complaint, filed Sept. 9 by Robbins Geller Rudman & Dowd LLP, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, Philadelphia and Atlanta, claims that some former and current A&P executives violated the Securities Exchange Act of 1934. A&P itself wasn’t named as a defendant in the action because it filed for bankruptcy protection in December 2010.
Those named in the action are former Executive Chairman and CEO Christian Haub, former CEO and President Eric Claus, former CFO and Treasurer Brenda Galgano, Vice Chairman and Chief Strategy Officer Andreas Guldin, former CEO and President Ron Marshall, and current CEO and President Sam Martin.
The complaint alleges that during the period mentioned above, the defendants failed to disclose material adverse facts about the company’s true financial condition, business and prospects. Specifically, the class action alleges that the executives failed to reveal that A&P was facing increased low-cost competition from retailers such as Walmart and Target, which negatively affected its business and financial condition; that the Pathmark acquisition was a “complete disaster” for the company, as Pathmark’s operations were in far worse condition than had been represented to investors; that A&P wasn’t operating according to internal expectations and couldn’t achieve the guidance endorsed by the defendants; and that, as a result of these factors, the defendants lacked a reasonable basis for their positive statements about the company, its operations and prospects.
The class action seeks to recover damages on behalf of all purchasers of A&P securities during the period noted above. Those who are member of this class can view a copy of the complaint or join the class action online at www.rgrdlaw.com/cases/aandp |
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Ga. court upholds Open Meetings fines
Legal Network |
2011/09/14 15:55
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Georgia's top court is requiring the city of Statesboro to pay the legal costs of residents who sued it for violating the state's Open Meetings Act.
The unanimous opinion released Monday upholds a Bulloch County judge's ruling that requires the city pay $4,250 in legal fees after it found the Statesboro mayor and city council met outside the Statesboro City Hall chambers to discuss the city's 2011 budget.
A group of residents sued the city, mayor and five council members and sought an injunction barring any more "secret" meetings, and the city appealed after a judge ruled against it in September 2010.
The opinion written by Justice Harold Melton says "the Open Records Act explicitly authorizes the assessment of attorney fees." |
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Wal-Mart Uses Class Action Against Netflix
Legal Network |
2011/09/09 07:35
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Wal-Mart is using its failed class action lawsuit with Netflix to attract new users to its video streaming service, Vudu.
A federal court in California agreed late last week to allow Wal-Mart to pay $27.5 million to 40 million Netflix subscribers. The kicker? They can make the payment in the form of gift cards for Walmart.com. As a result, this also gives Wal-Mart access to Netflix's customer database.
The class action suit came in response to a dinner meeting in 2005, where the CEOs of Netflix and Wal-Mart allegedly agreed to share the DVD market. According to consumer advocates, under the pact, Wal-Mart agreed not to rent DVDs if Netflix promised not to sell them. Class action suits were filed against both companies in 2009, claiming that this agreement violated antitrust laws.
While Wal-Mart decided to settle the case, Netflix is still fighting the allegations, claiming the suit "has no merit."
Wal-Mart's settlement, which still has to be finalized in February 2012, comes as the discount giant is in the process of aggressively promoting its Vudu service, which it acquired in February 2010. At the same time, Netflix is in dire need of an image cleanup, following several unfriendly consumer moves, including a recent price hike and the falling out of its Liberty Starz deal. |
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Court upholds conviction in Iowa coach's death
Legal Network |
2011/09/07 07:34
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An appeals court has upheld the first-degree murder conviction of a mentally ill man who shot his former football coach in the school's weight room.
Mark Becker had argued that he was legally insane when he shot Aplington-Parkersburg High School Coach Ed Thomas in June 2009. A jury found Becker guilty and rejected his insanity defense.
Doctors testified at the trial that Becker is a paranoid schizophrenic but they disagreed over whether he knew right from wrong when he shot Thomas.
Becker's lawyers argued that jurors were given incorrect instructions about the legal definition of insanity.
The Iowa Court of Appeals on Thursday agreed one instruction was incorrect but said jurors were given another instruction that correctly defined insanity. Taken together, the court says jurors were properly instructed. |
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