Founded in 1939, Sara Lee Corporation produces and distributes baked goods, fresh and processed meats, coffee, and other consumer goods.

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 August 1, 2002 and April 24, 2003, thereby artificially inflating the price of Sara Lee securities. The Complaint alleges that Defendants issued a series of materially false and misleading statements concerning the Company's operations and prospects. In particular, the Complaint alleges that the statements were materially false and misleading because they failed to disclose: (a) that, despite the Company Reshaping program, the Company was still burdened with numerous poorly performing businesses and would have to reevaluate its various businesses. Accordingly, Sara Lee did not have "the right mix of businesses" in that several material businesses were "not growing" or were "in significant decline"; (b) that the Company's underperforming businesses were causing the Company to experience declining results and, as a result, the Company would not be growing at the rates represented to the market; (c) due to a lack of proper internal or financial controls, Sara Lee failed to identify or recognize those businesses or brands among its portfolio of companies that would need to be "run dramatically differently in the future"; and (d) based on the foregoing, Sara Lee lacked any reasonable basis upon which to project it (i) would experience "double-digit operating income increase" for fiscal 2003 among its "five lines of business" or (ii) have diluted EPS for fiscal 2003 in the range of $1.54 to $1.60. On April 24, 2003, Sara Lee shocked the public when it issued a press release announcing its financial results for the third quarter, the period ending March 31, 2003. The Company announced that it was reducing earnings for fiscal 2003 to $1.50 to $1.52 per share, significantly below consensus expectations of $1.59. In response to this announcement, the price of Sara Lee common stock dropped by 10%. During the Class Period, Sara Lee insiders sold more than $23 million of their personally held Sara Lee common stock to the unsuspecting public.

On September 29, 2003, the Court entered the Order granting the motion for co-lead Plaintiffs and approving their choice of class Counsel. On October 31, 2003, the Court entered the Order consolidating all actions. On January 20, 2004, the Plaintiffs filed a Consolidated Amended Class Action Complaint, and the Defendants responded by filing a motion to dismiss on March 5, 2004. On December 21, 2004, the Judge Charles R. Norgle Sr. denied the Defendants’ motion to dismiss. Discovery was then commenced. On October 19, 2005, the Defendants filed a motion for judgment on the pleadings.

On July 10, 2006, the Judge Charles R. Norgle Sr. granted the Defendants’ motion for judgment on the pleadings. On July 12, 2006, the Court entered the Opinion and Judgment. The Plaintiffs have filed a motion for relief from the final judgment and for leave to amend the consolidated amended Complaint.