According to the Lead Counsel’s case page, the terms of the proposed settlement, as outlined more fully in the Stipulation and Agreement of Settlement, create a settlement fund in the amount of $6,050,000 for the benefit of the class. A Settlement Fairness Hearing to determine, among other things, whether the proposed Settlement is fair, reasonable and adequate was held January 30, 2007, and Judge Thomas P. Griesa signed an Order and Final Judgment that same day granting final approval of the Settlement.
As summarized by the Company’s FORM 10-K for the fiscal year ended January 28, 2006, A&F is aware of 20 actions that have been filed against A&F and certain of its current and former officers and directors on behalf of a purported, but as yet uncertified, class of shareholders who purchased A&F’s Class A Common Stock between October 8, 1999 and October 13, 1999. These 20 actions have been filed in the United States District Courts for the Southern District of New York and the Southern District of Ohio, Eastern Division, alleging violations of the federal securities laws and seeking unspecified damages. On April 12, 2000, the Judicial Panel on Multidistrict Litigation issued a Transfer Order transferring the 20 pending actions to the Southern District of New York for consolidated pretrial proceedings under the caption In re Abercrombie & Fitch Securities Litigation. On November 16, 2000, the Court signed an Order appointing the Hicks Group, a group of seven unrelated investors in A&F’s Common Stock, as lead plaintiff, and appointing lead counsel in the consolidated action. On December 14, 2000, plaintiffs filed a Consolidated Amended Class Action Complaint (the “Amended Complaint”) in which they did not name as defendants Lazard Freres & Co. and Todd Slater, who had formerly been named as defendants in certain of the 20 complaints. On February 14, 2001, A&F and the other defendants filed motions to dismiss the Amended Complaint. On November 14, 2003, the motions to dismiss the Amended Complaint were denied as to all defendants except Michelle Donnan-Martin. On December 2, 2003, A&F and the other defendants moved for reconsideration or reargument of the November 14, 2003 order denying the motions to dismiss. On February 23, 2004, the motions for reconsideration or reargument were denied. On April 1, 2004, plaintiffs filed a motion for class certification. On April 8, 2005, A&F and the other defendants filed their opposition to plaintiffs’ motion for class certification. The Court has yet to rule on the plaintiffs’ motion for class certification. The parties are currently conducting merits discovery.
Several purported shareholder class action lawsuits have been filed against Abercrombie & Fitch Co. in the US District Courts of New York and Ohio. The first complaint was filed in the U.S.D.C. for the Southern District of Ohio, Docket # 2:99-cv-1093. The complaint alleges that Abercrombie & Fitch Co. and its highest officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The Complaint alleges that the Abercrombie & Fitch defendants issued materially false and misleading statements while selectively disclosing only to defendant Slater, a securities analyst at Lazard Freres & Co., that A&F expected only 12% growth in same-store revenues, far lower growth than what had been communicated to other securities analysts. As a result of this selective disclosure, Lazard's top clients were able to sell significant holdings in A&F's stock prior to the October 13, 1999 public disclosure of A&F's true financial condition. After revelation of A&F's true financial condition and its selective disclosure of the poorer results to Lazard's analyst, A&F's stock price plummeted from its Class Period high above $39 per share to below $24 per share.
On April 13, 2009, a Notice of Appeal was filed with the United States Court of Appeals for the Sixth Circuit to appeal the Final Judgment entered on March 13, 2009.