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Class Action Filed Against Former, Current AP Execs
Legal News |
2011/09/19 08:54
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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 amp; Pacific Tea Co. Inc. (Aamp;P) for the period between July 23, 2009, and Dec. 10, 2010. The complaint, filed Sept. 9 by Robbins Geller Rudman amp; 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 Aamp;P executives violated the Securities Exchange Act of 1934. Aamp;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 Aamp;P was facing increased low-cost competition from retailers such as Walmart and Target, whichnbsp; 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 Aamp;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 Aamp;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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Court sets aside class-action suit by Costco women
U.S. Court News |
2011/09/17 08:53
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Citing the U.S. Supreme Court's recent Walmart ruling, a federal appeals court set aside - but did not dismiss - a class-action suit by more than 700 women who accused discount retailer Costco of using an old-boys' network to bypass them for promotions.
A federal judge in San Francisco ruled in 2007 that the women had presented enough evidence of a common culture at Costco to proceed with a single nationwide suit against the company, rather than file individual claims.
The Ninth U.S. Circuit Court of Appeals overturned that decision Friday, relying in part on the Supreme Court's ruling in June dismissing a class action against Walmart by as many as 1.5 million female employees. The high court said the women had failed to show a company-wide policy that allegedly led to gender-based disparities in pay and promotions.
Likewise, the appeals court said, the Costco plaintiffs have not yet shown that they have enough in common to justify a class action.
The court said opposing expert witnesses disagreed about a central issue - whether the company promoted women less often than men in all regions or only a few - and said U.S. District Judge Marilyn Hall Patel should have resolved the dispute before letting the case proceed. |
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Appeals court upholds sentence in Ponzi scheme
U.S. Court News |
2011/09/16 08:54
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A federal appeals court has upheld the 30-year prison sentence for a man convicted of operating what prosecutors called the largest Ponzi scheme in Louisiana's history.
In a 15-page opinion issued Friday, the 5th U.S. Circuit Court of Appeals affirmed the sentence for Matthew Pizzolato, of Tickfaw.
Pizzolato also was ordered to make over $15 million in restitution to the 165 victims he defrauded. He had offices in Baton Rouge, Covington, Hammond and Lake Charles and advertised investment services under several company names, including Gulf Region Guaranty Inc.
Prosecutors said he promised high rates of return and claimed investors' money was protected against losses, but made risky investments they didn't authorize, gave away millions to friends and family and spent much of the money on luxury items for himself. |
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Pa high court to meet in historic chamber
Legal Line News |
2011/09/15 08:54
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Pennsylvania's highest court plans to convene in a historic chamber in Philadelphia for the first time in more than two centuries.
Tuesday's oral arguments session in the Supreme Court Chamber in Old City Hall will be the first time the justices have used the room since 1802.
The session also will be the first to be videotaped under a court policy announced last month. The Pennsylvania Cable Network plans to record the event and air it Tuesday evening.
Cases to be heard include one involving the state's use of an $800 million surplus from a fund that helps doctors pay medical malpractice premiums to balance the state budget in 2009.
The court is using the historic courtroom as part of a commemoration of Constitution Week, which runs through Saturday. |
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