Case Page

 

Case Status:    DISMISSED    
On or around 12/28/1998 (Date of order of final judgment)

Filing Date: January 12, 1998

As reported by the Company's SEC Form 10-Q for the quarterly period ended April 4, 1999, the case against the Rainforest Cafe was dismissed without prejudice on December 21, 1998. Plaintiffs filed an appeal of the judgement of dismissal
on January 29, 1999 and then filed a motion to voluntarily dismiss the appeal on
March 16, 1999. The appeal was dismissed on April 21, 1999.

According to the docket 98-CV-0074, on June 4, 1998, the Court entered the Order for Consolidation and Appointment of Lead Plaintiffs and Counsel. All related actions were consolidated into Civil File No. 98-74, entitled In Re Rainforest Cafe, Inc. Securities Litigation. The lead plaintiffs are Emanuel Massing, James Hiss, Jack Florio, Shirley Benjamin, James Zimmerman and Thomas Obinger, and the Court approved the the selection of Wolf Haldenstein Adler Freeman & Herz LLP as Lead Counsel and Heins, Mills and Olsen, P.L.C. as Liaison Counsel. On July 31, 1998, the plaintiffs filed a First Consolidated Amended Complaint, and on August 31, 1998, the defendants responded by filing a motion to dismiss the First Consolidated Amended Complaint.

The original complaint charges Rainforest and certain officers and directors of the Company during the relevant time period with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 for misrepresenting material information concerning Rainforest's financial condition, including negative sales trends in certain of the Company's restaurants, during the Class Period. Because of the issuance of a series of false and misleading statements and omissions concerning Rainforest's business and true financial condition, Rainforest common stock was artificially inflated during the Class Period.

On Jan 6, 1998 the Company announced that its three longest standing restaurants, that comprise its comparable store sales base, had experienced an 11% decline in sales in its 1997 fourth quarter in comparison to the same quarter in 1996. The Company additionally, announced that several other Company restaurants had also suffered declining sales in the fourth quarter. On the release of these negative results the Company's shares fell $12-3/8 to $18-3/8 or 40%.

The Complaint alleges that the Company's sophisticated Management Information Systems, including its point of sale system (the "POS" System) and its Unit- level system, provided management with daily information from each store, including inventory, revenue and sales information. The Complaint alleges that defendants therefore had immediate knowledge of the ompany's negative sales trends and failed to disclose this information to the investing public. The Complaint further alleges that defendants availed themselves of this inside knowledge of the Company's increasingly negative sales trends in the fourth quarter to sell the vast majority of their stock beginning on Oct. 23, 1997 (i.e. 25 days into the fourth quarter). The Complaint alleges that defendants sold 107,400 Rainforest shares for proceeds of over $3,640,000 at prices as high as $35.38 per share (i.e. nearly double its Jan. 6, 1998 price of $18-3/8). The Company's Chief Financial Officer sold 90% of his Rainforest stock holdings between Oct. 23 and Oct. 28, 1997 i.e. only three days after the Company announced, through its CEO, defendant Lyle Berman, that it was "pleased with the continued strong performance of all existing Rainforest Cafe units ... "

COMPANY INFORMATION:

Sector: Services
Industry: Restaurants
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: RAIN
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. Minnesota
DOCKET #: 98-CV-0053
JUDGE: Hon. Richard H. Kyle
DATE FILED: 01/12/1998
CLASS PERIOD START: 08/05/1997
CLASS PERIOD END: 01/06/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
  2. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date
COURT: D. Minnesota
DOCKET #: 98-CV-0074
JUDGE: Hon. Richard H. Kyle
DATE FILED: 07/31/1998
CLASS PERIOD START: 10/20/1997
CLASS PERIOD END: 01/06/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrack, Rodos & Bacine (San Diego - former)
    402 West Broadway , Barrack, Rodos & Bacine (San Diego - former), CA 92101
    619.230.0800 619.230.1874 · info@barrack.com
  2. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  3. Chestnut & Cambronne, P.A.
    222 South Ninth Street, 3700 Piper Jaffray Tower, Chestnut & Cambronne, P.A., MN 55402
    612.339.7300 612.336.2940 · info@chestnutcambronne.com
  4. Goldstein Lite & DePalma LLC
    Two Gateway Center, 12th Floor, Goldstein Lite & DePalma LLC, NJ 07102
    ·
  5. Heins Mills & Olson PLC
    3550 IDS Center, 80 South Eighth Street, Heins Mills & Olson PLC, MN 55402
    612.338.4605 612.338.4692 · info@heinsmills.com
  6. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  7. 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
  8. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date