According to the docket, on February 11, 2002, the plaintiff filed a Stipulation of Settlement and on April 5, 2002, the Court entered the Order preliminarily approving the settlement and providing for notice. On June 13, 2002, the Court entered the Order awarding plaintiff’s counsel’s fees and reimbursement of expenses in the amount of $271,944.64 and also awarding $2,700.00 and $3,000.00 to lead plaintiffs, Vincent Pino and Herbert Stone. The Plan of Allocation of settlement proceeds was also approved. The Court further entered the Final Judgment and Order of Dismissal with Prejudice by U.S. District Judge Melinda Harmon and the case was closed.
The original complaint charges Landry's and certain of its officers and directors and its underwriters with violations of the federal securities laws. The complaint alleges that beginning in mid-12/97, defendants began making false and misleading statements about the tremendous success of Landry's new Joe's Crab Shack restaurants, the continued success of its Crab House restaurants and the
success of its very rapid expansion program, which would add 48-49 new
restaurants in 98 and 99, stressing its ability to manage its rapid growth, due
to its state-of-the-art, sophisticated financial and operational controls and
its ability to attract and retain experienced managers for its restaurants.
According to the complaint, these favorable factors would result in 98 revenues of about $440 million, 98 and 99 EPS of $1.28-$1.31 and $1.62-$.165, respectively, and 25%-30% EPS growth for Landry's during 98-02, even with flat "same store" sales. These representations and forecasts artificially inflated Landry's stock to a high of $29-7/8 on 3/13/98.