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Case Status:    SETTLED
On or around 08/09/2002 (Date of order of final judgment)

Filing Date: April 22, 1998

According to the Company’s FORM 10-Q for the period ended September 30, 2002, in May 2001, the shareholder case was settled as to Arthur Andersen and in connection with such settlement Arthur Andersen agreed to pay $110.0 million. In August 2002, the case was settled as to defendants Dunlap, Kersh, Gluck, Uzzi and Fannin. Under the settlement agreements, judgments totaling $220.0 million were entered against these individuals. However only defendants Dunlap and Kersh will be required to fund the judgments, in the amount of $15.0 million and $0.3 million, respectively, while an additional $15.5 million is to be paid from a portion of the proceeds of settlements among the individual defendants and insurance carriers.

As summarized by the same SEC filing, commencing in April 1998, lawsuits were filed on behalf of purchasers of Sunbeam Corporation's common stock against Sunbeam Corporation and some of its present and former directors and former officers, as well as Arthur Andersen LLP ("Arthur Andersen"), Sunbeam Corporation's independent accountants for the period covered by the lawsuits, alleging violations of the federal and state securities laws. The plaintiffs sought an unspecified award of money damages. Commencing October 1998, lawsuits were filed in the U.S. District Court for the Southern District of Florida on behalf of certain purchasers of the Debentures against Sunbeam Corporation, certain of Sunbeam Corporation's former officers and directors and Arthur Andersen, alleging, among other things, violations of federal and state securities laws. The plaintiffs in the debentures actions sought, among other things, either unspecified monetary damages or rescission of their purchase of the Debentures. These lawsuits were consolidated in the U.S. District Court for the Southern District of Florida. As a result of Sunbeam Corporation's Filing, these cases were automatically stayed under the Bankruptcy Code as against Sunbeam Corporation. Under the Sunbeam Corporation Plan, if it is confirmed and becomes effective, the claims of the plaintiffs against Sunbeam Corporation will be discharged and such claimants may potentially share in the $1.0 million provided for unsecured creditors of Sunbeam Corporation (other than holders of Debentures) under the Sunbeam Corporate Plan.

The original complaint alleges that Sunbeam and its CEO violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 by misrepresenting information about business operations, sales and sales trends. The complaint further alleges that the defendants artificially inflated the price of the common stock so that the company could complete millions of dollars of debt financing needed to complete mergers with First Alert Inc., Signature Brands USA Corp., and Coleman Company. The complaint also states that following the tender offers for First Alert and Signature Brands, defendant announced that sale deficiencies and merger costs would reduce earnings below revised estimates issued only two weeks before this announcement; due to this announcement, the company's stock took a significant drop.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: SOC
Company Market: New York SE
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. Florida
DOCKET #: 98-CV-8258
JUDGE: Hon. Donald M. Middlebrooks
DATE FILED: 04/22/1998
CLASS PERIOD START: 10/22/1997
CLASS PERIOD END: 04/03/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abbey Gardy & Squiteri LLP (San Francisco)
    595 Market Street, Suite 2500, Abbey Gardy & Squiteri LLP (San Francisco), CA 94105
    415.538.3725 ·
  2. Burt & Pucillo LLP
    515 North Flagler Drive, Northbridge Centre, Suite 1701, Burt & Pucillo LLP, FL 33401
    800.349.4612 ·
  3. Goodkind Labaton Rudoff & Sucharow LLP
    100 Park Avenue, Goodkind Labaton Rudoff & Sucharow LLP, NY 10017
    212.907.0700 212.818.0477 · info@glrslaw.com
  4. Milberg Weiss Bershad Hynes & Lerach LLP (Boca Raton)
    The Plaza, Suite 900, 5355 Town Center Road, Milberg Weiss Bershad Hynes & Lerach LLP (Boca Raton), FL 33486
    561.361.5000 ·
No Document Title Filing Date
COURT: S.D. Florida
DOCKET #: 98-CV-8258
JUDGE: Hon. Donald M. Middlebrooks
DATE FILED: 06/30/2000
CLASS PERIOD START: 04/23/1997
CLASS PERIOD END: 06/30/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrack, Rodos & Bacine (Main office, Philadelphia)
    Two Commerce Square, 2001 Market Street, Suite 3300 , Barrack, Rodos & Bacine (Main office, Philadelphia), PA 19103
    215.963.0600 215.963.0838 · info@barrack.com
  2. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  3. Burt & Pucillo LLP
    515 North Flagler Drive, Northbridge Centre, Suite 1701, Burt & Pucillo LLP, FL 33401
    800.349.4612 ·
  4. Goodkind Labaton Rudoff & Sucharow LLP
    100 Park Avenue, Goodkind Labaton Rudoff & Sucharow LLP, NY 10017
    212.907.0700 212.818.0477 · info@glrslaw.com
  5. Milberg Weiss Bershad Hynes & Lerach LLP (Boca Raton)
    The Plaza, Suite 900, 5355 Town Center Road, Milberg Weiss Bershad Hynes & Lerach LLP (Boca Raton), FL 33486
    561.361.5000 ·
  6. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 · IRRep@wolfpopper.com
No Document Title Filing Date
No Document Title Filing Date