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Case Status:    SETTLED
On or around 04/08/2003 (Date of order of final judgment)

Filing Date: April 07, 1997

According to the docket posted, on March 31, 2003, the Court issued a Final Order and Judgment signed by U.S. District Judge John F. Keenan. According to the Order, the Court certified the class, approved the settlement and the plan of allocation, and dismissed the action with prejudice. The Final Order and Judgment was entered on April 8, 2003. The case is closed.

In a Business Wire article dated September 23, 2002, Scholastic Corporation announced that it has agreed in principle to settle the shareholder class action entitled In re Scholastic Corporation Securities Litigation. Scholastic will record a non-recurring pre-tax charge of $1.9 million in the quarter ended August 31, 2002 to reflect the 25% of the $7.5 million settlement that will not be paid by the Company's insurers. On an after-tax basis, the charge is equal to approximately $1.2 million or $0.03 per share.

As reported by the Company’s FORM 10-K for the fiscal year ended May 31, 2002, on January 26, 2000, an order was entered granting the Company's motion to dismiss plaintiffs' Second Amended Consolidated Complaint without leave to further amend the complaint. Previously, on December 14, 1998, an order was entered granting the Company's motion to dismiss plaintiffs' First Amended Consolidated Complaint, with leave to amend the complaint. On June 1, 2001, the Court of Appeals for the Second Circuit reversed the dismissal of the Second Amended Consolidated Complaint and remanded the case for further proceedings. On December 10, 2001, the Supreme Court of the United States denied the Company's petition for a Writ of Certiorari to review the Second Circuit's decision.

Earlier, according to the same SEC filing, three purported class action complaints were filed in the United States District for the Southern District of New York against the Company and certain officers seeking, among other remedies, damages resulting from defendants' alleged violations of federal securities laws. The complaints were consolidated. The Consolidated Amended Class Action Complaint (the "Complaint") was served and filed on August 13, 1997. The Complaint was styled as a class action, In re Scholastic Corporation Securities Litigation, 97 Civ.II 2447 (JFK), on behalf of all persons who purchased Company common stock from December 10, 1996 through February 20, 1997. The Complaint alleged, among other things, violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, resulting from purportedly materially false and misleading statements to the investing public concerning the financial condition of the Company. Specifically, the Complaint alleged misstatements and omissions by the Company pertaining to adverse sales and returns of its popular Goosebumps book series prior to the Company's interim earnings announcement on February 20, 1997.

The original complaint alleges that Scholastic and its Vice President for Finance and Investor Relations concealed a material decline in Goosebump book sales and a material increase in returns of Goosebump books. Plaintiffs further allege that during this period, this Vice President sold 80 percent of his holdings of Scholastic stock and Scholastic sold $125 million of notes.

COMPANY INFORMATION:

Sector: Services
Industry: Printing & Publishing
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SCHL
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: S.D. New York
DOCKET #: 97-CV-2447
JUDGE: Hon. John F. Keenan
DATE FILED: 04/07/1997
CLASS PERIOD START: 12/10/1996
CLASS PERIOD END: 02/20/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. Bernstein Litowitz Berger & Grossmann LLP (former San Diego)
    12544 High Bluff Drive, Suite 150, Bernstein Litowitz Berger & Grossmann LLP (former San Diego), CA 92130
    858.793.0070 858.793.0323 · blbg@blbglaw.com
  3. Bernstein Litowitz Berger & Grossmann LLP (Westfield, NJ)
    220 St. Paul Street, Bernstein Litowitz Berger & Grossmann LLP (Westfield, NJ), NJ 07090
    908.928.1700 908.301.9008 · blbg@blbglaw.com
  4. Entwistle & Cappucci LLP
    299 Park Avenue, 14th Floor, Entwistle & Cappucci LLP, NY 10171
    212.894.7200 212.894.7272 · info@entwistle-law.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 97-CV-2447
JUDGE: Hon. John F. Keenan
DATE FILED: 03/08/1999
CLASS PERIOD START: 12/10/1996
CLASS PERIOD END: 02/20/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (Former New York)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (Former New York), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
  2. Entwistle & Cappucci LLP
    299 Park Avenue, 14th Floor, Entwistle & Cappucci LLP, NY 10171
    212.894.7200 212.894.7272 · info@entwistle-law.com
  3. Law Offices of Bernard M. Gross (Philadelphia) (former)
    1515 Locust Street, 2nd Floor, Law Offices of Bernard M. Gross (Philadelphia) (former), PA 19102
    215-561-3600 215-561-3000 · bmgross@bernardmgross.com
No Document Title Filing Date