Case Page

 

Case Status:    SETTLED
On or around 01/29/1999 (Date of order of final judgment)

Filing Date: January 19, 1996

According to the complaint, the case involves a classic cooked book scheme in which Defendants, among other wrongful acts, knowingly disseminated materially false financial statements reporting "record" and accelerating sales and earnings per share.

Specifically, the complaint alleges that the financial and other misrepresentations disseminated by Defendants during the Class Period created the illusion that ABSI was enjoying unrestrained growth in sales and earnings when, in reality, the growth was attributable in material part to sales improperly recorded as recording revenue, contrary to the Company's own criteria for recording revenue only when goods have been shipped and title passed to the buyer. As a result, Plaintiff and other unsuspecting members of the investing public paid inflated prices as high as $13.00 per share for ABSI shares during the Class Period. Beginning on January 10, 1996, ABSI began to reveal the Company's true financial condition and prospects, and the other adverse information described herein, disclosed that it will restate its financial results for the past three years and that its operating cash flow is not sufficient to support its current obligations. In response, the trading price of ABSI shares plunged from a price of $6.75 per share on January 10, 1996 to a closing price of $3.00 per share on January 13, 1996, a 55% decline, resulting in damages to the Class well in excess of ten million dollars.

According to the docket, on October 19, 1998, a Stipulation and Settlement Agreement was filed and on January 29, 1999, the Court entered the Final Judgment and Order certifying the class and approving the settlement. The plantiffs’ counsel was awarded attorneys’ fees in the amount of $205,961.93 and reimbursement of expenses of $6,562.64, paid from the settlement fund. Each named plaintiff in this case and the North Carolina case received $5500.00. The case was dismissed.

COMPANY INFORMATION:

Sector: Basic Materials
Industry: Metal Mining
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ABSI
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: N.D. Ohio
DOCKET #: 96-CV-109
JUDGE: Hon. Solomon Oliver, Jr.
DATE FILED: 01/19/1996
CLASS PERIOD START: 03/17/1993
CLASS PERIOD END: 01/10/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Strauss & Troy
    The Federal Reserve Building, 150 East Fourth Street, Strauss & Troy, OH 45202-4018
    513.621.2120 513.241.8250 · wlwoods@strauss-troy.com
  2. Weisman, Goldberg & Weisman Co., L.P.
    101 Prospect Ave, West; 1600 Midland Building, Weisman, Goldberg & Weisman Co., L.P., OH 44115
    216.781.1111 216.781.6747 ·
  3. White, Getgey & Meyer
    1700 Central Trust Tower One, West Fourth Street , White, Getgey & Meyer, OH 45202
    513.241.3685. ·
No Document Title Filing Date