Lawsuit Overview
Settlement Overview
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October 12, 2012 - The court ordered the authorization of the distribution of the net settlement fund.
November 2, 2009 – The court approved the settlement and the plan of allocation. The award of attorneys’ fees and expenses is also granted, but not for the amount requested.
July 17, 2009 - The court preliminarily approved the settlement.
June 26, 2009 - Parties filed a stipulation of settlement.
July 18, 2008 - The court denied defendants' motions to dismiss
March 28, 2008 - Defendants filed motions to dismiss.
February 28, 2008 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased Children’s Place Retail Stores Inc (The) (NASDAQ: PLCE) common shares between March 9, 2006 and August 23, 2007. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between March 9, 2006 and August 23, 2007.
December 17, 2007 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.
November 20, 2007 - Lead plaintiff motion was filed.
October 9, 2007 - Another investor filed a complaint.
September 21, 2007 - An investor in shares of Children’s Place Retail Stores Inc (The) (NASDAQ: PLCE) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Children’s Place Retail Stores Inc (The) in connection with certain allegedly false and misleading statements made between August 3, 2006 and August 23, 2007.
The complaint charges Children’s Place Retail Stores Inc (The) and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Children’s Place Retail Stores Inc (The), through its subsidiaries, operates as a specialty retailer of merchandise for children from newborn to ten years of age. Children’s Place Retail Stores Inc (The) designs, contracts to manufacture, and sells apparel and accessories, and other children’s-oriented merchandise under Children’s Place Retail Stores Inc (The) and Disney Store brand names.
According to the complaint, between August 3, 2006 and August 23, 2007, defendants issued materially false and misleading statements that misrepresented and failed to disclose: (i) that Children’s Place Retail Stores Inc (The) was experiencing difficulties meeting certain deadlines for the remodeling and maintenance of its Disney stores and Disney was not satisfied with Children’s Place Retail Stores Inc (The)’s performance under their agreement; (ii) that, as a result of Children’s Place Retail Stores Inc (The)’s performance issues, Children’s Place Retail Stores Inc (The)’s exclusive ability to contract, manufacture, source, offer and sell merchandise featuring Disney-branded characters, past, present and future was at risk of being materially altered and/or lost completely; and (iii) as a result of the foregoing, Defendants lacked a reasonable basis for their positive statements about Children’s Place Retail Stores Inc (The), its prospects and revenue growth.
On August 23, 2007, Children’s Place Retail Stores Inc (The) announced, among other things, its preliminary fiscal 2007 second quarter financial results, Children’s Place Retail Stores Inc (The)’s revised earnings guidance and an update regarding its license agreement with the Walt Disney Company. Specifically, Children’s Place Retail Stores Inc (The) revealed that it will no longer have an exclusive license agreement with Disney and that certain executives violated Children’s Place Retail Stores Inc (The) policies and procedures with regard to Children’s Place Retail Stores Inc (The)’s stock option granting process. In response to this announcement, shares of Children’s Place Retail Stores Inc (The)’s common stock fell $5.59 per share, or 17%, to close at $27.43 per share, on heavy trading volume.