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Case Status:    SETTLED
On or around 10/30/1998 (Date of order of final judgment)

Filing Date: October 18, 1996

According to the docket posted, on October 30, 1998, the Court entered the Order and Judgment approving the settlement. Plaintiff's counsel are awarded $1,050,000, which constitutes 30% of the Gross Settlement Fund, as attorney's fees, and $73,710.57 in reimbursement of expenses, which shall be paid to Plaintiffs' Co-Lead Counsel from the Settlement Fund with interest. The case is closed.

By the Notice Of Pendency Of Class Action, a Settlement Fund consisting of $3,500,000 in cash, plus interest has been established. A Settlement Hearing will be held before the Honorable George A. O'Toole in the United States Courthouse, Post Office And Courthouse Building, 90 Devonshire Street, Boston, Massachusetts 02109, at 2 p.m., on April 27, 1998 (the "Settlement Hearing") to determine whether a proposed settlement (the "Settlement") of the above-captioned litigation (the "Litigation") as set forth in the Stipulation of Settlement dated December 19, 1997 (the "Stipulation"), is fair, reasonable and adequate and to consider the application of counsel for the Plaintiffs and the Class for attorneys' fees and reimbursement of expenses. The Court, by Preliminary Order In Connection With Settlement Proceedings, dated February 3, 1998, has certified aplaintiff class consisting of: "all persons and entities who purchased or otherwise acquired DAKA common stock during the timeperiod from October 30, 1995 through September 9, 1996, inclusive (the "Class Period")".

The complaint charges DAKA and the chairman of the board and chief executive officer of the company, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and related state law, by, among other things, misrepresenting and/or omitting material information concerning the "same store" sales results and future business prospects of Fuddruckers Inc. ("Fuddruckers"), during the class period. Among other things, the complaint alleges as follows. Prior to and throughout the class period, DAKA portrayed itself as a rapidly expanding company which was experiencing rising sales and profitability, while at the same time significantly expanding its restaurant and foodservice operations. Defendants, however, knew or recklessly disregarded that DAKA was experiencing serious problems and trends with respect to its Fuddruckers business that undermined the attainment of its growth plans. While defendants successfully used poor winter weather to explain the negative "same store" sales results at their Fuddruckers operations in the second and third quarters of fiscal 1996, by the beginning of the class period, defendants knew or recklessly disregarded that there were other serious problems and trends causing Fuddruckers' "same store" sales to decline and that such problems and trends were sustained, material and of a nature that would continue to negatively impact Fuddruckers' "same store" sales results going forward.


Sector: Services
Industry: Restaurants
Headquarters: United States


Ticker Symbol: DKAI
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. Massachusetts
DOCKET #: 96-CV-12109
JUDGE: Hon. George A. O'Toole, Jr.
DATE FILED: 10/18/1996
CLASS PERIOD END: 09/09/1996
  1. Alfred G. Yates, Jr.
    429 Forbes Avenue, Alfred G. Yates, Jr. , PA 15219
    412.391.5164 ·
  2. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  3. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 ·
  4. Shapiro Haber & Urmy LLP (Boston)
    75 State Street, Shapiro Haber & Urmy LLP (Boston), MA 02109
    617.439.3939 617.439.0134 ·
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