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Case Status:    SETTLED
On or around 06/29/1998 (Date of order of final judgment)

Filing Date: July 02, 1996

According to the docket, on June 29, 1998, a settlement conference was held before U.S. District Judge D. B. Smith. That day, the Court entered the Order and Final Judgment approving the settlement and awarding fees and expenses. The case is closed.

Earlier, on October 25, 1996, Italian Oven, Inc., filed a Suggestion of Bankruptcy.
On November 20, 2997, the Court entered the Certified Copy of the Order dated 10/24/97 from Bankruptcy Judge Fitzgerald. By that Order, the automatic stay imposed upon the suit was lifted for the limited purpose of allowing Judge Smith to consider and approve a settlement proposal.

According to the complaint, on November 21, 1995, the Company participated in an initial public offering of 2,700,000 shares of its common stock at a price of $8.00 per share. Defendants Wheat First Butcher Singer and Wheat, First Securities, Inc. were lead underwriters of the offering. According to plaintiffs, the offering prospectus portrayed the Company as a rapidly expanding restaurant chain with a profitable strategy. This strategy included plans to open 372 additional restaurants in the United States and Canada, half of those within the next five years. Plaintiffs dismiss language warning that there could be no assurance of the success of the Company's projections as a boilerplate disclaimer. On the contrary, plaintiffs assert that the Company was already aware of specific circumstances which would prevent such expansion. These circumstances included: (i) a severe liquidity crisis being experienced by Sizzler, the Company's wholly owned subsidiary and partner; (ii) difficulties experienced by other developers in obtaining requisite financing and termination of some development agreements; and (iii) the Company's own liquidity crisis, exacerbated by personal loans uncollectible from its CEO and pressure from its creditor bank, PNC Bank. Plaintiffs claim that the prospectus revealed none of these circumstances. In addition, plaintiffs claim that the public offering was necessitated by the refusal of PNC Bank to extend additional credit, that previous private placements of Company common stock were fraudulent, and that the prospectus revealed neither of these facts.

COMPANY INFORMATION:

Sector: Services
Industry: Restaurants
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: OVEN
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: W.D. Pennsylvania
DOCKET #: 96-CV-1248
JUDGE: Hon. D. Brooks Smith
DATE FILED: 07/02/1996
CLASS PERIOD START: 11/21/1995
CLASS PERIOD END: 06/24/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Alfred G. Yates, Jr. Law Firm
    429 Forbes Avenue, 519 Allegheny Building, Alfred G. Yates, Jr. Law Firm, PA 15219
    412.391.5164 ·
  2. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  3. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
No Document Title Filing Date