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You must submit the settlement "Proof" form attached below, in order to participate in this settlement. There is a strict deadline of December 2, 2017 by which all claims must be submitted. The instructions for submitting are included in the "Proof" and the "Notice" files attached below for your download. DO NOT SEND THE FORMS TO THE SHAREHOLDERS FOUNDATION, INC.
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To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Lawsuit Overview
Settlement Overview
You must register to view and download the Settlement Notice and Settlement Proof.
July 11, 2017 - The court preliminarily approved the settlement.
May 31, 2017 - A stipulation of settlement was filed by the parties.
July 5, 2016 - The court granted in part and denied in part defendants' motion to dismiss.
August 14, 2015 - An amended complaint was filed.
May 22, 2015 - The case was transferred to the U.S. District Court for the Southern District of New York.
March 2, 2015 - An investor in shares of Corporate Resource Services Inc (NASDAQ: CRRS) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Corporate Resource Services Inc in connection with certain allegedly false and misleading statements made between July 1, 2014 and February 6, 2015.
According to the complaint the plaintiff alleges on behalf of purchasers of Corporate Resource Services Inc (NASDAQ: CRRS) common shares between July 1, 2014 and February 6, 2015, that the defendants violated Federal Securities Laws.
More specifically, the plaintiff claims that Corporate Resource Services Inc issued allegedly materially false and misleading statements to investors by failing to disclose that its co-employer, Tri-State Employment Services, Inc., had a material unpaid federal payroll tax liability, which would adversely impact the Company and the Company was not in compliance with the Account Purchase Agreements with Wells Fargo as of November 30, 2014 and that when the truth was revealed to investors, the price of Corporate Resource Services Inc common stock dropped, damaging investors.
Corporate Resource Services Inc reported that its Total Revenue increased from $538.94 million for the 12 months period that ended on Sept. 30, 2011 to $819.67 million for the 12 months period that ended on January 3, 2014 and that its respective Net Income increased from $0.11 million to $278 million. Shares of Corporate Resource Services Inc (NASDAQ: CRRS) traded as high as $5.00 per share in September 2013.
However, since then NASDAQ: CRRS shares lost significant value. Through partial disclosures beginning in early February 2015, Corporate Resource Services Inc revealed that Corporate Resource Services Inc was in noncompliance with a funding agreement it has with Wells Fargo, that Corporate Resource Services Inc’s financial statements for 2014 could no longer be relied upon, that several members of Corporate Resource Services Inc’s audit committee resigned, and that an internal investigation required by the former audit committee members would not be funded.
NASDAQ: CRRS shares declined to as low as $0.05 per share on February 23, 2015.