Case Page

 

Case Status:    SETTLED
On or around 11/08/2002 (Date of order of final judgment)

Filing Date: April 07, 1999

According to Protection One, Inc.’s Form 10-K for the fiscal year ended December 31, 2002, on August 20, 2002, the parties filed a Stipulation of Settlement which provides for, among other things, no finding of wrongdoing on the part of any of the defendants, or any other finding that the claims alleged had merit, and a $7.5 million payment to the plaintiffs, which was fully funded by the Company's existing insurance. On November 4, 2002, the District Court approved the settlement and entered an Order and Final Judgment. The court certified a class for settlement purposes consisting of all persons and entities who purchased or otherwise acquired the common stock of the Company during the time period beginning and including February 10, 1998 through February 2, 2001. The Order and Final Judgment provides for, among other things, dismissal with prejudice and release of all Class members' claims against the Company, Monitoring, and the present and former officers and directors of the Company.

The class action suit charges defendants POI and certain officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as Securities and Exchange Commission ("SEC") Rule 10b-5 promulgated thereunder, by originating a series of materially misleading statements and omissions concerning the Company's business prospects. Specifically, the complaint alleges that during the Class Period, defendants knowingly or recklessly understated the Company's expenses, and overstated the Company's operating income and net income. On April 1, 1999, the defendants announced that, due to an SEC inquiry, the Company would restate its financial results for 1997 and 1998, thereby reducing net income for 1998 by $13 million, causing the Company to report a net loss of $2.6 million for the year. Worse still, POI's April 1, 1999 press release indicated that the SEC is still conducting an inquiry concerning the Company's amortization of certain costs associated with the acquisition of subscribers. The market reacted with shock to this news, and POI's share price fell 36% on April 1, 1999.

Other defendants named in the complaint are Western Resources, its subsidiary Westar Industries, Inc. that owned 87 percent of its subsidiary Protection One, Inc.

COMPANY INFORMATION:

Sector: Services
Industry: Security Systems & Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: POI
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: C.D. California
DOCKET #: 99-CV-03755
JUDGE: Hon. Dickran Tevrizian
DATE FILED: 04/07/1999
CLASS PERIOD START: 04/23/1998
CLASS PERIOD END: 04/01/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Finkelstein, Thompson & Loughran
    1050 30th Street, NW, Finkelstein, Thompson & Loughran, DC 20007
    202.337.8000 202.337.8090 · contact@ftllaw.com
  2. 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: C.D. California
DOCKET #: 99-CV-03755
JUDGE: Hon. Dickran Tevrizian
DATE FILED: 10/15/1999
CLASS PERIOD START: 04/23/1998
CLASS PERIOD END: 04/01/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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
No Document Title Filing Date