Case Page

 

Case Status:    SETTLED
On or around 12/03/2001 (Date of order of final judgment)

Filing Date: January 23, 1997

According to the latest docket, the parties entered into settlement agreement on July 16, 2001. The settlement was in the amount of $4,500,000 in cash. On November 30, 2001, the court issued the Final Judgment and Order approving the settlement and granting the motion for attorney fees in the amount of $1,125,000.00 and reimbursement of expenses in the amount of $832,028.82. The case is now closed.

On March 31, 1997, the defendants filed a motion to dismiss the complaint. On June 13, 1997, the plaintiffs filed an Amended Class Action Complaint. On July 11, 1997, the defendants filed a motion to dismiss the Amended Complaint. On July 22, 1997, the Court issued the Order granting the motion for appointment of the Biagas Plaintiffs as Lead Plaintiffs and granting the motion for approval of Lead Counsel. On July 30, 1998, the Magistrate Stephen T. Brown issued the Report and Recommendation that the defendants’ March 31, 1997 motion to dismiss be denied. On September 15, 1999, Judge K. M. Moore issued the Order denying the defendants’ motion to dismiss the Amended Complaint. The defendants filed a motion for reconsideration of that order, which was later denied on October 20, 1999. On October 15, 1999, the plaintiffs filed a motion to certify the class which was granted on February 16, 2001. On March 22, 2001, the defendants filed a motion for summary judgment which was later denied as motion due the pending settlement.

The original complaint alleges that "defendants disseminated numerous announcements concerning the purported financial success and rapidly expanding sales of the Company. Defendants also made numerous positive pronouncements concerning the Company's distribution systems, marketing efforts and product offerings." The complaint alleges that these statements were materially false and misleading because plaintiffs failed to disclose "a series of problems relating to its rapidly expanding inventories, deteriorating sales, and limited product offerings, as well as problems in its distribution facilities and marketing efforts." The complaint also alleges that while these misrepresentations inflated the price of the Company's stock, insiders sold over $5 million of their holdings. The Company also allegedly $100 million of convertible debentures to private investors during the class period. The complaint alleges that the Company's stock price was as high as $32.50 per share during the class period and that it declined to below $7.00 after corrective disclosures were made. Based on these allegations, the complaint asserts violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

COMPANY INFORMATION:

Sector: Services
Industry: Retail (Specialty)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: RAYS
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. Florida
DOCKET #: 97-CV-0191
JUDGE: Hon. K. Michael Moore
DATE FILED: 01/23/1997
CLASS PERIOD START: 03/21/1996
CLASS PERIOD END: 10/10/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Burt & Pucillo LLP
    515 North Flagler Drive, Northbridge Centre, Suite 1701, Burt & Pucillo LLP, FL 33401
    800.349.4612 ·
  2. 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
  3. Robert C. Susser
    6 East 43rd Street, Robert C. Susser, NY 10017-4609
    212.808.0298 · classaction@mail.com
  4. Schiffrin, Craig & Barroway
    3 Bala Plaza, East, Suite 400, Schiffrin, Craig & Barroway, PA 19004
    610-667-7706 ·
  5. 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
  6. 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. Florida
DOCKET #: 97-CV-0191
JUDGE: Hon. K. Michael Moore
DATE FILED: 06/13/1997
CLASS PERIOD START: 03/21/1996
CLASS PERIOD END: 10/10/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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 ·
  2. 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
No Document Title Filing Date