Case Page

 

Case Status:    SETTLED
On or around 10/02/2003 (Date of order of final judgment)

Filing Date: December 06, 2002

According to the docket dated October 4, 2003, the court gave final approval for the settlement on October 4, 2003.

According to the Proposed Settlement dated July 30, 2003, the parties agreed to settle the case with the defendants paying $5,375,000 in cash.

On February 26, 2003, the Court entered the Order granting the motion to appointed lead plaintiff and for approval of lead plaintiff's selection of lead counsel and liaison counsel. Vijay Sherma was appointed lead plaintiff and the law firm of Schiffrin & Barroway, LLP was approved as lead and the law firm of Weisman Goldbert & Weisman Co., LPA was approved as liaison counsel. On June 25, 2003, an Amended Complaint was filed, and on July 15, 2003 a Stipulation of Settlement was filed.

The original Complaint charges that during the Class Period, Cole National Corporation and certain of its officers and directors issued and/or failed to correct false and misleading financial statements and press releases concerning the Company's publicly reported revenues and earnings directed to the investing public. Specifically, (i) that the Company's revenues from optical warranties and net income for 1998, 1999, 2000, 2001 and for the two quarters of 2002 have been seriously overstated; (ii) because of these problems, the value of the Company's balance sheet and income statement were materially overstated at all relevant times; and (iii) despite Cole National's representations to the contrary, the Company's Class Period financial statements did not comply with GAAP, causing Cole National to investigate and consider restating its financial statements.

On November 26, 2002, the Company shocked the market and revealed that (i) the Company would conduct a re-audit of the financial statements for fiscal years 1998, 1999, 2000, 2001 and 2002 previously audited by Arthur Andersen LLP; (ii) re-audits would likely result in the restatement of the Company's financial statements; (iii) the Company was advised to recognize the revenues earned on the sale of the optical warranties at the time of sale; and (iv) as a result of these adjustments, material changes are likely in the timing of the recognition of the revenue and operating profits associated with these sales, in current and prior balance sheets relating to deferred revenue and shareholders' equity.

Further, the Company reported that the filing of its Form 10-Q for the third quarter of 2002 will be delayed and most likely the required restatements will be available at the time of the filing of its Form 10-K for its fiscal year ending February 1, 2003. The Company also stated that the investors should not rely on its previous financial statements.

In response to the news that Cole National's previously-reported financial results may not in fact be what they seemed (an accurate financial summary of the Company's operations), the Company's shares fell $1.25 or approximately 10% per share to close at $11.09 on November 26, 2002.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: CNJ
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: N.D. Ohio
DOCKET #: 02-CV-2397
JUDGE: Hon. John R. Adams
DATE FILED: 12/06/2002
CLASS PERIOD START: 03/23/1999
CLASS PERIOD END: 11/26/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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 ·
  2. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  3. Strauss & Troy
    The Federal Reserve Building, 150 East Fourth Street, Strauss & Troy, OH 45202-4018
    513.621.2120 513.241.8250 · wlwoods@strauss-troy.com
  4. Weisman, Goldberg & Weisman Co., L.P.
    101 Prospect Ave, West; 1600 Midland Building, Weisman, Goldberg & Weisman Co., L.P., OH 44115
    216.781.1111 216.781.6747 ·
No Document Title Filing Date
COURT: N.D. Ohio
DOCKET #: 02-CV-2397
JUDGE: Hon. John R. Adams
DATE FILED: 06/25/2003
CLASS PERIOD START: 01/31/1998
CLASS PERIOD END: 05/16/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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 ·
  2. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  3. Strauss & Troy
    The Federal Reserve Building, 150 East Fourth Street, Strauss & Troy, OH 45202-4018
    513.621.2120 513.241.8250 · wlwoods@strauss-troy.com
No Document Title Filing Date