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Case Status:    SETTLED
On or around 06/09/1999 (Date of order of final judgment)

Filing Date: July 25, 1997

According to the firm's 10-K filing dated 3/26/1999, the Company and certain of its current and former officers and directors entered into an agreement to settle a class action lawsuit brought against them in the United States District Court for the District of Colorado and in state court in Jefferson County of Colorado. The settlement was later approved, and on 06/04/1999, the District Court entered the final Judgment and Order of Dismissal with Prejudice of all claims brought against the Company and certain of its current and former officers and directors.

The March of 1999's settlement did not include the claims pending in the lawsuit against the underwriters in the Company's public offerings of common stock in August 1996 and November 1996. However, on 11/03/2000, the Court entered a Judgment and Order of Dismissal with Prejudice of all claims brought against the underwriters and against the Company's independent public accountants.

The original complaint alleges, among other things, that the Company and the other defendants violated Sections 11, 12(2) and 15 of the Securities Act of 1933, as amended, and Section 10(b) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 thereunder. More specifically, the complaint alleges that Company and certain of its officers and directors violated the federal securities laws by issuing false and misleading statements and omitting material facts regarding the company's financial results throughout the Class Period. The Complaint alleges that defendants artificially inflated Einstein's earnings and inflated the value of its stock by: -- concealing the huge losses suffered by and the poor financial health of its Financed Area Developers ("FADs"), 11 separate entities that owned the bulk of the bagel stores and were financed by Einstein; -- failing to consolidate the FADs' financial results with those of Einstein, as the company was required to do under Generally Accepted Accounting Principles ("GAAP"); -- listing the loans it provided to the FADs as an asset on Einstein's balance sheet despite grave uncertainty regarding the FADs' ability to repay the loans, failing to establish a loss reserve for these loans, and failing to disclose the financial results of the individual FADs; -- failing to provide material facts concerning related party transactions, and instead providing only skeletal, and aggregated, financial information on the FADs; The Complaint further alleges that, as a result of the defendants' violations, the market price of Einstein stock during the Class Period was as high as $36.40, and tumbled to $11.25 by the end of the Class Period.

COMPANY INFORMATION:

Sector: Services
Industry: Restaurants
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ENBX
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: D. Colorado
DOCKET #: 97-CV-1614
JUDGE: Magistrate Judge O. Edward Schlatter
DATE FILED: 07/25/1997
CLASS PERIOD START: 08/02/1996
CLASS PERIOD END: 07/15/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Dyer & Shuman, LLP
    801 East 17th Avenue, Dyer & Shuman, LLP, CO 80218-1417
    303.861.3003 800.711.6483 · info@dyershuman.com
  2. F. James Donnelly, PC
    6076 South Chester Way, F. James Donnelly, PC, CO 80111
    720.493.9814 ·
  3. Hagens Berman & Mitchell
    2425 East Camelback Road; Suite 620, Hagens Berman & Mitchell, AZ 85016
    602.840.5900. 602.840.3012 · info@hagens-berman.com
No Document Title Filing Date
COURT: D. Colorado
DOCKET #: 97-CV-1614
JUDGE: Magistrate Judge O. Edward Schlatter
DATE FILED: 12/08/1997
CLASS PERIOD START: 08/02/1996
CLASS PERIOD END: 10/29/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abbey Gardy & Squiteri LLP (San Francisco)
    595 Market Street, Suite 2500, Abbey Gardy & Squiteri LLP (San Francisco), CA 94105
    415.538.3725 ·
  2. Bader, Villanueva & Feder, P.C.
    1660 Wynkoop Street, Suite 1100, Bader, Villanueva & Feder, P.C., CO 80202
    303.534.1700 ·
  3. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  4. Bernard M. Gross
    1500 Walnut Street, Suite 600, Bernard M. Gross, PA 19102
    215.561.3600 215.561.3000 · bmgross@BernardMGross.com
  5. Cohen Milstein Hausfeld & Toll PLLC (Seattle WA)
    701 Fifth Avenue, Suite 6860, Cohen Milstein Hausfeld & Toll PLLC (Seattle WA), WA 98014
    206.521.0080 206.521.0166 · lawinfo@cmht.com
  6. Hagens Berman, LLP
    1301 Fifth Avenue Suite 2900, Hagens Berman, LLP, WA 98101
    206.623.7292 · info@hagens-berman.com
  7. Kaufman Malchman Kirby & Squire, LLP
    919 Third Ave 11th Flr, Kaufman Malchman Kirby & Squire, LLP, NY 10022
    212.371.6600 ·
  8. 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
  9. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date