Case Page

 

Case Status:    DISMISSED    
On or around 10/25/2002 (Other)

Filing Date: February 19, 2002

As disclosed by the Company’s FORM 10-Q for the quarterly period ended September 30, 2002, on June 7, 2002, the plaintiffs filed a consolidated amended complaint. On July 18, 2002, the Company and is officers and former officers filed a motion to dismiss the amended complaint in its entirety. The Company's former auditors also filed a motion to dismiss the amended complaint. On October 23, 2002, the federal district court granted the Company's motion to dismiss the complaint in its entirety for failing to allege facts sufficient to state a claim. The court also granted the motion of the Company's former auditors.

The original Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between April 21, 1999 and February 12, 2002, thereby artificially inflating the price of Hub Group securities. Throughout the Class Period, as alleged in the complaint, defendants issued statements regarding Hub Group's quarterly and annual financial performance and filed reports confirming such performance with the United States Securities and Exchange Commission (``SEC''). The complaint alleges that these statements were materially false and misleading because, among other things, (i) the Company's 65% owned subsidiary, Hub Group Distribution Services, which represented a material portion of the Company's revenues, was improperly recognizing revenues in violation of the Company's accounting policies and GAAP. As a result, the Company's operating results were materially misrepresented and overstated; (ii) the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) based on the foregoing, defendants' statements concerning the prospects of Hub Group were lacking in a reasonable basis at all times. On February 12, 2002, after the close of the market, Hub Group shocked the market when it announced that it had discovered certain accounting irregularities at its 65% owned subsidiary, Hub Group Distribution Services. As a result of this discovery, the Company estimates that it had overstated its earnings on an after-tax, post minority interest basis by between approximately $3 million to $4 million since 1999. The Company further stated that its investigation is ongoing and once it has been completed, the Company will restate its financial results for the appropriate periods. In response to these disclosures, the price of Hub Group common stock dropped from $10.52 per share to $8.03 per share, a one-day loss of more than 31% on volume of more than 153,700 shares traded - more than ten times the average trading volume.

COMPANY INFORMATION:

Sector: Transportation
Industry: Misc. Transportation
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: HUBG
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: N.D. Illinois
DOCKET #: 02-CV-1188
JUDGE: Hon. Robert W. Gettleman
DATE FILED: 02/19/2002
CLASS PERIOD START: 04/21/1999
CLASS PERIOD END: 02/12/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Leo W. Desmond
    2161 Palm Beach Lakes Boulevard, Suite 204, Leo W. Desmond, FL 33409
    561.712.8000 561.712.8000 · stocklaw@bellsouth.net
  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. Miller Faucher Cafferty & Wexler, LLP
    101 North Main Street - Suite 570, Miller Faucher Cafferty & Wexler, LLP, MI 48104
    734.769.2144 ·
No Document Title Filing Date
COURT: N.D. Illinois
DOCKET #: 02-CV-1188
JUDGE: Hon. Robert W. Gettleman
DATE FILED: 06/07/2002
CLASS PERIOD START: 04/21/1999
CLASS PERIOD END: 02/12/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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 ·
  2. Miller Faucher and Cafferty LLP
    30 North LaSalle Street, Miller Faucher and Cafferty LLP, IL 60602
    312.782.4880 ·
No Document Title Filing Date