Reddy Ice Holdings, Inc. - Securities Class Action

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Stanford Law School

Reddy Ice Holdings, Inc. Summary: According to a press release dated August 8, 2008, the complaint charges Reddy Ice and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Reddy Ice is the largest manufacturer and distributor of packaged ice in the United States.

Specifically, the complaint alleges that during the Class Period, defendants issued a series of materially false and misleading statements concerning the Company’s financial performance and prospects. According to the complaint, from at least 2002 to the present, defendants engaged in a continuing agreement, understanding and conspiracy in restraint of trade to artificially raise, fix, maintain or stabilize prices for packaged ice in the United States in violation of §1 of the Sherman Act, 15 U.S.C. §1. Moreover, defendants divided up the packaged ice market so that they would not compete with other packaged ice makers, such as Arctic Glacier International, Inc. and Home City Ice Co. Specifically, the complaint alleges that Reddy Ice failed to disclose that (a) the Company was recognizing significant amounts of revenues derived from illegal activities in violation of the U.S. antitrust laws; and (b) as a result, the Company’s financial statements were not a fair presentation of Reddy Ice’s results and were presented in violation of U.S. Generally Accepted Accounting Principles and U.S. Securities and Exchange Commission rules.

On March 6, 2008, after the markets closed, Reddy Ice issued a press release announcing that “federal officials executed a search warrant at the Company’s corporate office in Dallas on March 5, 2008.” Upon this news, on the next trading day, shares of the Company’s stock fell $7.73 per share, or 33%, to close at $15.38 per share, on heavy trading volume.

On July 17, 2009, District Judge Paul D. Borman signed the Order granting the motion to consolidate several actions. On July 27, 2009, Judge Borman granted the motion to appoint interim lead plaintiff and lead counsel. On August 6, 2009, an Order was entered modifying the previous Order appointing lead plaintiff and lead counsel. Lawrence Diamond and Southeastern Pennsylvania Transportation Authority’s are appointed interim lead plaintiffs and Schiffrin Barroway Topaz & Kessler, LLP is interim lead counsel and Zausmer, Kaufman, August, Caldwell & Taylor, P.C. is interim liaison counsel for the class.

On November 2, 2009, the plaintiffs filed a Consolidated Class Action Complaint which named an additional individual as defendant. On December 17, 2009, the defendants responded by filing several motions to dismiss the Consolidated Class Action Complaint. On May 11, 2010, the defendants filed a redacted motion to dismiss.

On December 6, 2010, the Court entered the Opinion and Order signed by Judge Paul D. Borman on the defendants’ pending motions to dismiss. According to the Order, the Court denies Defendants Reddy Ice, Brick, Janusek and Weaver’s motions to dismiss and grants Defendant Booth’s motion to dismiss. The Court further grants Defendants Reddy Ice, Janusek and Brick’s motion to supplement their pending motion to dismiss.

On October 14, 2011, the plaintiffs filed a motion to certify the class.

INDUSTRY CLASSIFICATION:
SIC Code: 2090
Sector: Consumer Non-Cyclical
Industry: Food Processing

COMPANY/ISSUER NAME:	Reddy Ice Holdings, Inc.
COMPANY/ISSUER TICKER:	FRZ
COMPANY WEBSITE:	http://www.reddyice.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

John Chamberlain, et al. v. Reddy Ice Holdings, Inc., et al.

COURT: E.D. Michigan	DOCKET NUMBER: 08-CV-13451
JUDGE NAME: Hon. David M. Lawson
DATE FILED: 08/08/2008	SOURCE:
CLASS PERIOD START: 08/10/2005	CLASS PERIOD END: 03/06/2008
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Coughlin Stoia Geller Rudman & Robbins LLP (Melville) 58 South Service Road, Suite 200, Melville, NY, 11747 (voice) 631.367.7100, (fax) 631.367.1173, info@csgrr.com/ Dyer & Berens LLP (former) 682 Grant Street, Denver, CO, 80203-3507 (voice) 303.861.1764, (fax) 303.861.1764, contact@dyerberens.com Holzer Holzer & Fistel, LLC (former Atlanta) 1117 Perimeter Center West, Suite E-107, Atlanta, GA, 30338 (voice) 770.392.0090, (fax) 770.392.0090, VanOverbeke Michaud & Timmony, P.C. 79 Alfred Street, Detroit, MI, 48201 (voice) 313.578.1200, (fax) 313.578.1200, _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 4

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violation of the Federal Securities Laws - Jury Trial Demanded
Type: Complaint		Date on the document: 08/08/2008
Order Consolidating Actions
Type: Order of Consolidation		Date on the document: 07/17/2009
Order Appointing Interim Lead Plaintiff And Interim Lead Counsel
Type: Order Appointing LP/LC		Date on the document: 07/27/2009

REFERENCE COMPLAINT

John Chamberlain, et al. v. Reddy Ice Holdings, Inc., et al.

COURT: E.D. Michigan	DOCKET NUMBER: 08-CV-13451
JUDGE NAME:
DATE FILED: 11/02/2009	SOURCE:
CLASS PERIOD START: 08/10/2005	CLASS PERIOD END: 09/15/2008
TYPE OF COMPLAINT: Consolidated Complaint
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Schiffrin Barroway Topaz & Kessler, LLP (Radnor) 280 King of Prussia Road, Radnor, PA, 19087 (voice) 610.667.7706, (fax) 610.667.7056, info@sbtklaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
Consolidated Class Action Complaint
Type: Complaint		Date on the document: 11/02/2009
Opinion And Order (1) Denying Defendants Reddy Ice Holdings, Inc. William P. Brick And Steven J. Janusek's Motions To Dismiss (Dkt. No.78); (2) Denying Defendant Jimmy C. Weaver's Motion To Dismiss (Dkt. No. 41); (3) Granting Defendant Raymond D. Booth's Motion To Dismiss (Dkt. No. 39); And (4) Granting Defendants' Motion To Supplement (Dkt. No. 82)
Type: Order		Date on the document: 12/06/2010
Order Requiring Submission Of Documents To The Court For In Camera Review In Advance Of The Court-Ordered Hearing On The Unopposed Motion To Withdraw And Substitute Counsel
Type: Order		Date on the document: 07/12/2011
U.S. District Court Civil Docket
Type: Docket		Date on the document: 10/14/2011

OTHER DOCUMENTS

Case Name and/or Number:
Type:		Date on the document:

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