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Case Status:    SETTLED
On or around 09/23/1998 (Date of order of final judgment)

Filing Date: April 17, 1997

According to the firm's 10-Q filing dated 11/16/1998, three class actions were filed against the Company and certain of its officers in the United States District Court for the Northern District
of California: Harrow v. YES! Entertainment Corporation et al., filed on
April 17, 1997; Takats v. YES! Entertainment Corporation et al., filed on
June 11, 1997; and Siegel v. YES! Entertainment Corporation et al., filed
on June 27, 1997. On August 6, 1997, the three federal actions were
consolidated for pretrial proceedings and captioned In re YES!
Entertainment Corp. Securities Litigation, Civil Action No. C-97-1388 MHP.
On December 4, 1997, the action was referred to the Honorable Charles
Breyer of the Northern District of California. On August 18, 1997, all
defendants filed a motion to dismiss the consolidated action. In response,
on November 8, 1997, plaintiffs filed a first amended consolidated
compliant for violation of the Securities Exchange Act of 1934. Defendants
filed a motion to dismiss the consolidated complaint on January 5, 1998.
One May 15, 1998, the Court granted defendants' motion to dismiss without
prejudice. Plaintiffs filed a second amended complaint on July 9, 1998.
The Federal class actions were based upon claims under federal securities
laws which impose liability on persons who make false or misleading
statements in connection with the purchase or sales of securities.
The Company maintained, and continues to maintain, that the allegations
contained in each of the class actions lawsuits were without merit.
Nonetheless, the Company concluded that further conduct of the class action
lawsuits would be protracted and expensive, and that it would be desirable
and beneficial to the Company to settle the lawsuits. Accordingly, on July
8, 1998, the Company entered into an agreement that settles all the class
action securities lawsuits. The settlement calls for
payment to the plaintiff class of $2.25 million, which is being funded
under the Company's insurance policies. Judge Breyer preliminarily approved
the settlement on July 10, 1998, and the settlement funds were placed in
escrow on August 3, 1998.
On September 18,
1998, the Court entered a Final Judgment and Order of Dismissal which
approved the settlement of all the class action securities lawsuits and
dismissed with prejudiced the Federal class actions.

The original complaint seeks to remedy violations of federal securities laws committed by Yes!, its Chief Executive Officer and its Chief Financial Officer which violations involved misrepresentations regarding Yes!'s operations and sales as well as the status and success of several of its newly introduced products, including V-Link, a 900 Mhz mobile telephone system targeted at teenage consumers which defendants asserted would be the Company's flagship product for
the 1996 holiday selling season. Throughout 1996, Yes! claimed that by the end of 1996 Yes! would "sell hundreds of thousands" of units of V-Link and that V-Link sales combined with sales of Yes!'s other products would ensure 1996 revenues and net income of $100 million and $7.5 million, respectively.
Despite defendants' claims that large retailers such as Toys R Us and WalMart were Yes!'s biggest supporters, the truth was that in order to get major retailers to accept shipments of V-Link in time for the 1996 holiday season Yes! opted to flout FCC regulations and ship V-Link to retailers while
concealing the fact that Yes! was required to receive final marketing approval
from the FCC prior to shipment.

COMPANY INFORMATION:

Sector: Consumer Cyclical
Industry: Recreational Products
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: YESS
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: N.D. California
DOCKET #: 97-CV-1388
JUDGE: Hon. Charles R. Breyer
DATE FILED: 04/17/1997
CLASS PERIOD START: 03/29/1996
CLASS PERIOD END: 12/12/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Lawrence G. Soicher
    342 Madison Avenue, 18th Floor , Lawrence G. Soicher, NY 10173
    212/883.8000 ·
  2. 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
COURT: N.D. California
DOCKET #: 97-CV-1388
JUDGE: Hon. Charles R. Breyer
DATE FILED: 08/06/1997
CLASS PERIOD START: 03/29/1996
CLASS PERIOD END: 12/12/1996
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. Berman DeValerio Pease & Tabacco PC
    One Liberty Square, Berman DeValerio Pease & Tabacco PC, MA 02109
    617.542.8300 ·
  3. Finkelstein & Krinsk LLP
    501 West Broadway, Suit 1250, Finkelstein & Krinsk LLP, CA 92101
    877.493.5366 619.238.5425 ·
  4. James V. Bashian
    500 Fifth Ave Ste 2800, James V. Bashian, NY 10110
    ·
  5. Kaufman Malchman Kirby & Squire, LLP
    919 Third Ave 11th Flr, Kaufman Malchman Kirby & Squire, LLP, NY 10022
    212.371.6600 ·
  6. Kenneth A. Elan (former NY)
    217 Broadway Suite 404, Kenneth A. Elan (former NY), NY 10007
    212.619.0260 ·
  7. Lawrence G. Soicher
    342 Madison Avenue, 18th Floor , Lawrence G. Soicher, NY 10173
    212/883.8000 ·
  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. Rabin & Peckel LLP
    275 Madison Avenue, 34th Floor, Rabin & Peckel LLP, NY 10016
    212.682.1818 212.682.1892 · email@rabinlaw.com
  10. Richard D. Kranich
    531 Main Street, Suite 407, Richard D. Kranich, NY 10044-0107
    212.608.8965 ·
No Document Title Filing Date
No Document Title Filing Date