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Case Status:    DISMISSED    
On or around 04/10/1997 (Date of order of final judgment)

Filing Date: July 16, 1996

On April 10, 1997, the Court dismissed the class action suit, writing that the "plaintiffs have not alleged that there was any intentional wrongdoing by defendants" and that Ernst had properly disclosed their business risks.

According to the complaint, the Class Period commences with Ernst's initial public offering ("IPO") of common stock which raised approximately $41.5 million from investors. The IPO was possible only as a result of defendants' misrepresentations and omissions of fact concerning the financial performance and condition of Ernst. These misrepresentations and omissions operated to artificially inflate the price of Ernst's common stock at the initial offering and throughout the Class Period. The IPO offering material presented a rosy picture of a company well positioned in an industry which was experiencing dramatic growth.

As reported in the Company’s FORM 10-Q For the Quarterly Period Ended July 27, 1996, on July 12, 1996, Ernst Home Center, Inc. (the "Company") filed a voluntary petition for relief under Chapter 11 of title 11 of the United States Code in the United States Bankruptcy Court for the District of Delaware. Two former Directors, one former officer and one current officer, who is a Director, of the Company are named as defendants in a class action complaint alleging among other things, misrepresentation and omissions of fact in connection with the Company's initial public offering of common stock. The complaint was filed in the United States District Court for the Western District of Washington at Seattle. The Company is not named as a defendant in this complaint.

COMPANY INFORMATION:

Sector: Services
Industry: Retail (Home Improvement)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ERNS
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: W.D. Washington
DOCKET #: 96-CV-1096
JUDGE: Hon. Carolyn R. Dimmick
DATE FILED: 07/16/1996
CLASS PERIOD START: 09/27/1994
CLASS PERIOD END: 01/26/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Hagens Berman & Mitchell
    2425 East Camelback Road; Suite 620, Hagens Berman & Mitchell, AZ 85016
    602.840.5900. 602.840.3012 · info@hagens-berman.com
  2. Hagens Berman, LLP
    1301 Fifth Avenue Suite 2900, Hagens Berman, LLP, WA 98101
    206.623.7292 · info@hagens-berman.com
No Document Title Filing Date
COURT: W.D. Washington
DOCKET #: 96-CV-1096
JUDGE: Hon. Carolyn R. Dimmick
DATE FILED: 01/07/1997
CLASS PERIOD START: 09/27/1994
CLASS PERIOD END: 01/26/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Hagens Berman Sobol Shapiro LLP (Seattle)
    1301 Fifth Avenue, Suite 2900, Hagens Berman Sobol Shapiro LLP (Seattle), WA 98101
    206-623-7292 206-623-0594 · info@hagens-berman.com
  2. Lovell Mitchell & Barth (Bellevue)
    11542 N.E. 21st Street, Ste A , Lovell Mitchell & Barth (Bellevue), WA 98004
    425-452-9800 ·
No Document Title Filing Date