LAWSUITS NEWS & LEGAL INFORMATION
False Assessments
Miami, FL: (May-19-08) A stockholder derivative lawsuit was brought against Concord Camera Corp., naming certain of the company's past and present directors and officers as defendants. The suit claimed that the Concord defendants breached their fiduciary duties to the company, thus impacting the earnings of the stockholders.
The suit was brought by a company stockholder, who stated that between Aug. 14, 2003 and May 10, 2004, the defendants breached their fiduciary duties and damaged the company by disseminating materially false and misleading information. The misleading documentation pertained to the valuation of Concord's inventory, its estimates for sales returns and allowances, the reliability of its deferred tax assets and the company's financial results and prospects. As a result of the misrepresentation, the company was severely damaged.
As part of a settlement reached in the case, which was pending in the United States District Court for the Southern District of Florida, the defendants agreed to a payment of $100,000 for the shareholder plaintiff's attorney fees and costs. Sources stated that the settlement agreement does not require either the company or the individual defendants to make any other payments. In addition, the parties have considered corrections that have been instituted by the company which address and remediate some of the internal control problems at Concord as alleged in the lawsuit. [CNN MONEY: CONCORD CAMERA GRANTED PRELIMINARY APPROVAL FOR SETTLEMENT OF SHAREHOLDER DERIVATIVE LITIGATION]
Published on May-22-08
The suit was brought by a company stockholder, who stated that between Aug. 14, 2003 and May 10, 2004, the defendants breached their fiduciary duties and damaged the company by disseminating materially false and misleading information. The misleading documentation pertained to the valuation of Concord's inventory, its estimates for sales returns and allowances, the reliability of its deferred tax assets and the company's financial results and prospects. As a result of the misrepresentation, the company was severely damaged.
As part of a settlement reached in the case, which was pending in the United States District Court for the Southern District of Florida, the defendants agreed to a payment of $100,000 for the shareholder plaintiff's attorney fees and costs. Sources stated that the settlement agreement does not require either the company or the individual defendants to make any other payments. In addition, the parties have considered corrections that have been instituted by the company which address and remediate some of the internal control problems at Concord as alleged in the lawsuit. [
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