Case Page

 

Case Status:    SETTLED
On or around 04/08/2004 (Date of order of final judgment)

Filing Date: August 11, 1998

Prior to Lead Plaintiffs filing their responses to the D&O Defendants' Motion for Summary Judgment and the Court's ruling on the SmarTalk Partners Defendants' Motion for Summary Judgment, the parties agreed to settle the litigation. Pursuant to the terms of the proposed settlement, which the Court preliminarily approved on July 31, 2003, a Settlement Fund consisting of $11,100,000 cash has been established for the benefit of the Class. On April 7, 2004, the Court entered the Final Order and Judgment signed by Judge Edmund A. Sargus, Jr. approving the settlement.

Earlier, Plaintiffs and PwC agreed to settle the case against PwC. Pursuant to the terms of the proposed partial settlement, a Settlement Fund consisting of $15,000,000 cash has been established for the benefit of the Class. By Order of the Court dated November 14, 2001, the proposed partial settlement with PwC was preliminarily approved. The Court issued an Order on May 10, 2002 granting final approval of this partial settlement with PwC.

On February 22, 1999, Plaintiffs filed a Consolidated and Amended Complaint. The Amended Complaint does not name SmarTalk as a defendant due to the Company filing for Bankruptcy protection on January 22, 1999. On December 17, 1999 the Individual Defendants and PwC filed motions to dismiss Plaintiffs' Amended Complaint. On November 1, 2000 the Court issued an Order denying all of Defendants' motions to dismiss the Amended Complaint except for PwC's. The case continued against all of the Individual Defendants. On May 22, 2001 Plaintiffs filed a Notice of Appeal with the United States Court of Appeals for the Sixth Circuit to appeal the District Court's dismissal of the claims against PwC.

The case was first filed in the U.S. District Court for the Eastern District of New York. On September 28, 1998, the Court entered the Order transferring the case to the U.S. District Court for the Southern District of Ohio.

The original complaint alleges that defendants, while amassing over $50 million in proceeds from insider sales of the SmarTalk stock, concealed from the investing public the fact that they had been committing gross violations of the federal securities laws, including misleading the public by claiming that SmarTalk was expanding its business opportunities through favorable acquisitions and distribution agreements with other companies and that the Company was generating "record" financial results. The complaint alleges that SmarTalk failed to disclose to the investing public that: a) they artificially recognized the sales figures announced during the Class Period; b) they were recognizing revenues prematurely and improperly in violation of GAAP; c) SmarTalk's distributors were not selling prepaid cards at the levels represented; d) SmarTalk's management was encountering severe difficulties in integrating the companies acquired; and e) defendants were not controlling costs. On August 10, 1998, SmarTalk announced that it was postponing the release of its quarterly results due to SmarTalk's auditors questioning SmarTalk's accounting methods. This news caused SmarTalk shares to drop over 60 percent on extraordinary volume.

COMPANY INFORMATION:

Sector: Services
Industry: Communications Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SMTK
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. Ohio
DOCKET #: 98-CV-05163
JUDGE: Hon. Reena Raggi
DATE FILED: 08/11/1998
CLASS PERIOD START: 08/14/1997
CLASS PERIOD END: 08/10/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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
  2. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  3. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  4. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  5. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
No Document Title Filing Date
COURT: S.D. Ohio
DOCKET #: 98-CV-00814
JUDGE: Hon. Reena Raggi
DATE FILED: 02/22/1999
CLASS PERIOD START: 08/13/1997
CLASS PERIOD END: 01/07/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (New York, NY)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (New York, NY), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
  2. Klafter & Olsen LLP (Washington)
    1250 Connecticut Ave., N.W. Suite 200, Klafter & Olsen LLP (Washington), DC 20036
    202.261.3553 202.261.3533 · info@klafterolsen.com
  3. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    401 B Street, Suite 1700, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    206.749.5544 206.749.9978 · info@lerachlaw.com
  4. Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA)
    100 Pine Street - Suite 2600, Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA), CA 94111
    415.288.4545 415.288.4534 ·
  5. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  6. Olsen Law Firm
    2121 K Street, N.W. Suite 800, Olsen Law Firm, DC 20037
    703.351.5199 ·
No Document Title Filing Date
No Document Title Filing Date