According to the Court's docket sheet, on 09/29/2000 the court granted the motion to dismiss the amended class action complaint, which dismissed with prejudice all claims against individual defendants and Montgomery Securities were. The court also dismissed without prejudice, as to Just for Feet, Inc, the right of plaintiff to petition to reinstate to pursue any claim embraced herein not adjudicated or discharged by the Bankruptcy Court. The plaintiff appealed to Circuit Court's decision, and the Court of Appeal finally dismissed it by granting the other party's motion to dismiss this appeal with prejudice.
The original complaint charges Just For Feet, certain officers and directors of the
Company, and certain underwriters of the Secondary Offering with violations of
Sections 11, 12(a)(2) and 15 of the Securities Act of 1933, and related state
laws, by, among other things, disseminating a materially false and misleading
Registration Statement and Prospectus relating to the Secondary Offering.
Among other things, the complaint alleges that the Company's reported financial
results included in the Registration Statement and Prospectus were materially
overstated by its use of dubious and inappropriate accounting practices
associated with reporting pre-opening store costs. These inappropriate
accounting practices had the effect of masking the Company's lack of
profitability at the time of the Secondary Offering. Because of the issuance
of a series of materially false and misleading statements concerning Just For
Feet's business and defendants' concealment of matters regarding the
deteriorating business of the Company, plaintiff and the other members of the
Class suffered damages.