Case Page

 

Case Status:    DISMISSED    
On or around 09/09/2004 (Other)

Filing Date: June 03, 2002

According to the Company’s FORM 10-Q For Quarter Ended June 19, 2004, after briefing and oral argument, the Third Circuit, in an Opinion dated July 9, 2004, affirmed the District Court's dismissal of the Complaint.

As summarized by the same SEC filing, on June 5, 2002, a purported securities class action Complaint was filed in the United States District Court for the District of New Jersey against the Company and certain of the Company’s officers and directors in an action captioned Brody v. The Great Atlantic & Pacific Tea Co., Inc., No. 02 CV 2674 (FSH). The Brody lawsuit and four subsequently-filed related lawsuits were consolidated into a single lawsuit captioned In re The Great Atlantic & Pacific Tea Company, Inc. Securities Litigation, No. 02 CV 2674 (FSH) (the "Class Action Lawsuit"). On December 2, 2002, plaintiffs filed their Consolidated Amended Class Action Complaint (the "Complaint"), which alleged claims under Sections 10(b) (and Rule 10b-5 promulgated thereunder) and 20(a) of the Securities Exchange Act of 1934 arising out of the Company's July 5, 2002 filing of restated financial statements for fiscal 1999, fiscal 2000 and the first three quarters of fiscal 2001. The Complaint in the Class Action Lawsuit sought unspecified money damages, costs and expenses. On January 17, 2003, defendants filed a motion seeking to dismiss the Complaint. In an Opinion & Order entered September 18, 2003, the District Court dismissed plaintiffs' Complaint without prejudice. After declining to file a Second Amended Complaint, plaintiffs appealed the District Court's dismissal of their Complaint to the United States Court of Appeals for the Third Circuit.

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 November
15, 2001 and May 28, 2002, thereby artificially inflating the price of Great
Atlantic securities. Throughout the Class Period, as alleged in the complaint,
defendants issued statements regarding Great Atlantic'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 was employing improper accounting practices regarding
the recognition of vendor allowances and the accounting of inventory in certain
of its regions for fiscal year 2001 in violation of Generally Accepted
Accounting Principles. As a result, the Company's operating results were
materially misrepresented and overstated; and (ii) based on the foregoing,
defendants' statements concerning the prospects of Great Atlantic were lacking
in a reasonable basis at all times. On May 28, 2002, the last day of the Class Period, the Company announced that
it would delay the filing of its annual report with the SEC while it conducted
an accounting review which will most likely result in a charge to earnings. The
accounting review will focus on the appropriate timing for the recognition of
vendor allowances and the accounting of inventory in certain of the Company's
regions for fiscal year 2001. Great Atlantic further noted that a substantial
portion of any charge the Company will take will reverse credits which were
recognized prematurely as reductions of cost of merchandise sold, and that
portion will therefore be recognized in periods subsequent to fiscal 2001 as
reductions of cost of merchandise sold. Following this disclosure, Great
Atlantic stock fell $4.03 per share, or approximately 16%, to close on May 28,
2002 at $21.070 per share.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: GAP
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: D. New Jersey
DOCKET #: 02-CV-2674
JUDGE: Hon. Faith S. Hochberg
DATE FILED: 06/03/2002
CLASS PERIOD START: 11/15/2001
CLASS PERIOD END: 05/28/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Cauley Geller Bowman Coates & Rudman LLP (Little Rock, AR)
    P.O. Box 25438, Cauley Geller Bowman Coates & Rudman LLP (Little Rock, AR), AR 72221-5438
    501.312.8500 501.312.8505 ·
  3. 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 ·
  4. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  5. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date
COURT: D. New Jersey
DOCKET #: 02-CV-2674
JUDGE: Hon. Faith S. Hochberg
DATE FILED: 12/02/2002
CLASS PERIOD START: 05/19/1999
CLASS PERIOD END: 07/05/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley Geller Bowman & Coates (Boca Raton, FL)
    2255 Glades Road Suite 421A, Cauley Geller Bowman & Coates (Boca Raton, FL), FL 33431
    561.750.3000 ·
  2. Kantrowitz, Goldhamer & Graifman
    747 Chestnut Ridge Road, Kantrowitz, Goldhamer & Graifman, NY 10977
    845.356.2570. 845.356.4335 ·
  3. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.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
No Document Title Filing Date