Advanced Marketing Services, Inc. - Securities Class Action

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Copyright (c) 2001
Stanford Law School

Advanced Marketing Services, Inc. Conclusion: On May 25, 2007, a Motion was made for Disbursement of Funds Notice of Motion and Motion for Order Authorizing Distribution of Settlement. On July 26, 2007, an Order was entered granting the Motion for Disbursement of Funds.

As summarized by the lead counsel’s website, on July 31, 2006, U.S. District Court Judge Roger T. Benitez granted preliminary approval of the parties’ settlement and plan of allocation. On October 16, 2006, the Court entered the Order of Final Judgment and Dismissal of the Action with Prejudice and granted final approval of the Settlement, the Plan of Allocation of Settlement Proceeds and the Request for Attorneys’ Fees and Reimbursement of Expenses.

According to a press release dated May 20, 2006, Advanced Marketing Services said it agreed to settle a class-action shareholder lawsuit for $6 million, subject to court approval. The lawsuit filed in federal court in San Diego against the book publishing wholesaler and distributor stems from a fraud and accounting scandal that surfaced in 2003. Ongoing investigations by the Justice Department and the Securities and Exchange Commission found fraudulent accounting practices that resulted in overstatement of Advanced Marketing's pre-tax earnings. Three former company executives also have pleaded guilty to criminal charges related to a scheme not to tell retail clients of credit due them for advertising and promotion services. The shareholder lawsuit alleged that San Diego-based Advanced Marketing indulged in fraudulent accounting practices and that key executives made false statements about the company's earnings from 1999 through 2003. In March, Advanced Marketing revised downward its earnings from 2000 to 2004. In a filing with the SEC, Advanced Marketing said it will receive $10.5 million from settling its claims against several insurance companies. The money will be used to pay the shareholder lawsuit settlement and some legal costs, according to the filing. The insurance carriers denied coverage for some issues involved in the Advanced Marketing scandal, according to the filing.

The complaint alleges that defendants violated the Securities Exchange Act of 1934. The complaint alleges during the Class Period, defendants are alleged to have issued or caused to be issued a series of false and misleading statements to the marketplace resulting in Advanced Marketing's stock price trading at artificially inflated levels.

Specifically, the complaint alleges that the Company's stock traded as high as $25.00 before it announced that it would restate its previously filed financial statements for each of the fiscal years in the five-year period ending March 31, 2003. The false and misleading statements Defendants are alleged to have issued, or caused to be issued to the marketplace, concern the Company's net income, advertising revenue and related costs. Advanced Marketing has announced that the amount of net income that was erroneously stated and will have to be reversed might be more than 10 percent of all net income reported during the affected period.

INDUSTRY CLASSIFICATION:
SIC Code: 5190
Sector: Services
Industry: Printing & Publishing

COMPANY/ISSUER NAME:	Advanced Marketing Services, Inc.
COMPANY/ISSUER TICKER:	MKT
COMPANY WEBSITE:	http://www.advmkt.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Eastside Investors, LLP., et al. v. Advanced Marketing Services, Inc., et al.

COURT: S.D. California	DOCKET NUMBER: 04-CV-00121
JUDGE NAME: Hon. Jeffrey T. Miller
DATE FILED: 1/16/2004	SOURCE: Business Wires
CLASS PERIOD START: 1/16/1999	CLASS PERIOD END: 1/13/2004
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Bernstein Litowitz Berger & Grossmann LLP (San Diego, CA) 12544 High Bluff Drive, Suite 150, San Diego, CA, 92130 (voice) 858.793.0070, (fax) 858.793.0323, blbg@blbglaw.com Brian Felgoise 230 South Broad Street, Suite 404 , Philadelphia, PA, 19102 (voice) 215.735.6810, (fax) 215/735.5185., Brodsky & Smith, LLC (Pennysylvania) 11 Bala Avenue, Suite 39, Bala Cynwyd, PA, 19004 (voice) 610.668.7987, (fax) 610.660.0450, esmith@Brodsky-Smith.com Cauley Geller Bowman Coates & Rudman, LLP (New York) 200 Broadhollow, Suite 406, Melville, NY, 11747 (voice) 631.367.7100, (fax) 631.367.1173, Charles Lilley & Associates 707 Seventeenth Street #2900, Denver, CO, 80202 (voice) 303.293.9800, (fax) , Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC) 1100 New York Avenue, N.W., Suite 500, West Tower, Washington, DC, 20005 (voice) 202.408.4600, (fax) 202.408.4699, lawinfo@cmht.com Federman & Sherwood 120 North Robinson, Suite 2720, Oklahoma City, OK, 73102 (voice) 405-235-1560, (fax) , wfederman@aol.com Law Offices of Charles J. Piven, P.A. World Trade Center-Baltimore,401 East Pratt Suite 2525, Baltimore, MD, 21202 (voice) 410.332.0030, (fax) , pivenlaw@erols.com Paskowitz & Associates 60 East 42nd Street, 46th Floor, New York, NY, 10165 (voice) 212.685.0969, (fax) 212.685.2306, classattorney@aol.com Stull, Stull & Brody (Los Angeles) 10940 Wilshire Boulevard - Suite 2300, Los Angeles, CA, 90024 (voice) 310.209.2468, (fax) , The Brualdi Law Firm 29 Broadway - Suite 1515, New York, NY, 10006 (voice) 877.495.1187, (fax) 212.952.0608, _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 11

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violation of Federal Securities Laws - Jury Trial Demanded
Type: Complaint		Date on the document: 01/16/2004
Order Granting The Policemen And Firemen Retirement System Of The City Of Detroit's Motion For Appointment As Lead Plaintiff And Motion For Approval Of Lead Counsel
Type: Order		Date on the document: 05/04/2004
U.S. District Court Civil Docket
Type: Docket		Date on the document: 06/08/2004
Notice Of: (1) Pendency Of Class Action, (2) Hearing On Proposed Settlement, And (3) Attorneys’ Fee Petition And Right To Share In Net Settlement Fund
Type: Notice		Date on the document: 07/31/2006
Proof of Claim and Release
Type: Other		Date on the document: 07/31/2006
Final Judgment And Order Of Dismissal Of The Litigation With Prejudice
Type: Order		Date on the document: 10/16/2006
Order Approving Plan Of Allocation Of Settlement Proceeds
Type: Order		Date on the document: 10/16/2006
Order Awarding Attorneys' Feesand Reimbursement Of Expenses
Type: Order		Date on the document: 10/16/2006
U.S. District Court Civil Docket
Type: Docket		Date on the document: 11/13/2006
Notice Of Motion And Motion For Order Authorizing Distribution Of Settlement Fund
Type: Motion		Date on the document: 5/25/2007
Order Authorizing Distribution Of Settlement Fund
Type: Order		Date on the document: 7/26/2007

OTHER DOCUMENTS
Class Action Complaint
Case Name and/or Number: Bowen
Type: Complaint		Date on the document: 01/22/2004

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