Case Page

 

Case Status:    DISMISSED    
On or around 01/06/2000 (Court's order of dismissal)

Filing Date: May 26, 1999

The complaint charges First Alliance and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that the directors and officers of First Alliance and its subsidiaries pursued a fraudulent scheme and course of business that operated as a fraud or deceit on purchasers of First Alliance stock during the Class Period. Defendants' scheme was designed to and did enable First Alliance's controlling shareholders Brian Chisick and Sarah Chisick to sell nearly 5.088 million shares in a secondary stock offering for proceeds exceeding $90.2 million. These stock sales were successfully accomplished in significant part because of the reported apparent growth in First Alliance's earnings per share ("EPS"), and defendants' statements about First Alliance achieving significant net income and EPS growth in 1998 and 1999, resulting in its stock price trading at a significantly higher price/earnings ratio than was the case with First
Alliance's competitors. However, just months after the secondary offering,
First Alliance was forced to reveal that it would report lower than expected
results in the second quarter of 1998, in part due to the fact that it would no
longer rely upon the improper assumptions it had previously used to calculate
its earnings. As a result, First Alliance's stock price declined from its Class
Period high of $24-1/8 per share in October 1997 to as low as $3-$4 per share.

On December 14, 1999, the Court entered a Notice regarding the intra-district transfer of the case from the Southern Division to the Western Division and reassigning the case to U.S. District Judge Florence-Marie Cooper under new case number CV 99-13084-FMC(AJWx).

On January 4, 2000, the plaintiff filed a Notice to dismiss the action without prejudice. On January 6, 2000, the Court entered the Order by U.S. District Judge Florence-Marie Cooper dismissing the action without prejudice, in its entirety, pursuant to FRCP 41(a)(1)(i), and the case was terminated.

COMPANY INFORMATION:

Sector: Financial
Industry: Consumer Financial Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: FACO
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: C.D. California
DOCKET #: 99-CV-727
JUDGE: Hon. Gary L. Taylor
DATE FILED: 05/26/1999
CLASS PERIOD START: 04/24/1997
CLASS PERIOD END: 05/27/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohen Milstein Hausfeld & Toll PLLC (Seattle WA)
    701 Fifth Avenue, Suite 6860, Cohen Milstein Hausfeld & Toll PLLC (Seattle WA), WA 98014
    206.521.0080 206.521.0166 · lawinfo@cmht.com
  2. MacMillan & Lucas

    ·
  3. 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
  4. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 · IRRep@wolfpopper.com
No Document Title Filing Date
COURT: C.D. California
DOCKET #: 99-CV-13084
JUDGE: Hon. Gary L. Taylor
DATE FILED: 12/14/1999
CLASS PERIOD START: 04/24/1997
CLASS PERIOD END: 05/27/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohen Milstein Hausfeld & Toll PLLC (Seattle WA)
    701 Fifth Avenue, Suite 6860, Cohen Milstein Hausfeld & Toll PLLC (Seattle WA), WA 98014
    206.521.0080 206.521.0166 · lawinfo@cmht.com
  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
  3. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 · IRRep@wolfpopper.com
No Document Title Filing Date
No Document Title Filing Date