According to the Company’s Form 10-K for the fiscal year ended January 3, 2004, on June 13, 2001, the U.S. District Court dismissed the case with prejudice and the plaintiffs filed an appeal of that dismissal. On October 8, 2003 the U.S. Court of Appeals for the 6th Circuit affirmed the judgment of the District Court. On December 30, 2003 the 6th Circuit Court denied the plaintiffs’ petition for rehearing. The plaintiffs had until January 29, 2004 to file a petition for review by the United States Supreme Court. No such petition was filed and the Company considers this case closed.
The original Complaint charges Champion and its Chief Executive Officer with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of Champion's inventory problems drove Champion's stock price to a Class Period high of $21.0625 per share and low of $13.50 per share, inflicting enormous damages on investors.