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Case Status:    DISMISSED    
On or around 04/12/2005 (Date of order of final judgment)

Filing Date: November 20, 2003

According to a press release dated May 9, 2005, plaintiffs suing Best Buy Co. Inc. in a class securities fraud litigation failed to meet the heightened pleading requirements of the Private Securities Litigation Reform Act, the U.S. District Court for the District of Minnesota held April 12, dismissing the plaintiffs' allegations that the company made false and misleading statements about an acquisition (In re Best Buy Inc. Securities Litigation, D. Minn., Civ. NO. 03-6193 ADM/AJB, 4/12/05). The court agreed with the defendants that the plaintiffs' claims were "conclusory allegations not grounded in specific facts," and did not meet the particularity requirements for pleading a claim under Section 10(b) of the 1934 Securities Exchange Act and Rule 10b-5. The court also refused the plaintiffs' request for leave to amend.

The action charges that defendants violated federal securities laws by issuing a series of materially false and misleading statements to the market throughout the Class Period which statements had the effect of artificially inflating the market price of the Company's securities.

The 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 January 9, 2002 and August 7, 2002, thereby artificially inflating the price of Best Buy common stock. The Complaint alleges that these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (a) that Best Buy Co.'s mall-based Sam Goody stores (acquired as part of its acquisition of Musicland) were performing worse than Best Buy's expectations, requiring that Best Buy shrink the sizes of such Sam Goody stores and close some Sam Goody stores altogether; (b) that Best Buy's "remerchandising" of the Sam Goody stores was failing badly, materially depressing Best Buy's operations and earnings; (c) based on the foregoing, the Musicland acquisition was a failure as the Company was saddled with a money- losing chain of stores; (d) that Best Buy was experiencing growing competition from mass discounters such as Wal-Mart, which was devoting more advertising to electronics to increase consumer awareness of its presence in the category and materially impacting Best Buy's profit margins; (e) that Best Buy's strategy of capital expenditures to enhance the high-tech look of their stores and raising the service level was not yielding expected increases in revenues; and (f) that, as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and their earnings projections.

The complaint further alleges that on August 8, 2002 Best Buy issued a press release announcing that it was lowering its earnings outlook for its second fiscal quarter to a range of 17 to 21 cents per diluted share, compared with prior guidance of 30 to 32 cents per diluted share. In response to this announcement, the price of Best Buy common stock declined sharply, falling from $30.80 per share on August 7, 2002 to $19.55 per share on August 8, 2002, or a one-day decline of more than 36%. During the Class Period, prior to the disclosure of the true facts about the Company, Best Buy insiders sold more than $35 million of their personally-held Best Buy common stock to the unsuspecting market and the Company completed a debt offering raising hundreds of millions of dollars.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: BBY
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. Minnesota
DOCKET #: 03-CV-06193
JUDGE: Hon. Ann D. Montgomery
DATE FILED: 11/20/2003
CLASS PERIOD START: 01/09/2002
CLASS PERIOD END: 08/07/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  2. Goodkind Labaton Rudoff & Sucharow LLP
    100 Park Avenue, Goodkind Labaton Rudoff & Sucharow LLP, NY 10017
    212.907.0700 212.818.0477 · info@glrslaw.com
  3. 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
  4. Murray, Frank & Sailer LLP (Milwaukee)
    3181 South 27th Street, Murray, Frank & Sailer LLP (Milwaukee), WI 53215
    866.264.3995 414.482.8001 · info@murrayfrank.com
  5. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  6. 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
  7. Wechsler Harwood, LLP.
    488 Madison Avenue 8th Floor, Wechsler Harwood, LLP., NY 10022
    212.935.7400 212.753.3630 · info@whesq.com
  8. 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. Minnesota
DOCKET #: 03-CV-06193
JUDGE: Hon. Ann D. Montgomery
DATE FILED: 08/19/2004
CLASS PERIOD START: 01/09/2002
CLASS PERIOD END: 08/07/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Braun Law Group, P.C. (Former)
    12400 Wilshire Blvd., Suite 920, Braun Law Group, P.C. (Former), CA 90025
    888.658.7100 · info@braunlawgroup.com
  2. Cauley Bowman Carney & Williams, PLLC (Little Rock)
    11001 Executive Center Drive, Suite 200, Cauley Bowman Carney & Williams, PLLC (Little Rock), AR 72211
    501.312.8500 888.551.9944 · info@cauleybowman.com
  3. Geller Rudman, PLLC.
    197 South Federal Highway, Suite 200, Geller Rudman, PLLC., FL 33432
    561.750.3000 888.262.3131 · info@geller-rudman.com
  4. Head, Seifert & Vander Weide
    333 South Seventh Street, Suite 1140, Head, Seifert & Vander Weide, MN 55402
    612-339-1601 ·
  5. Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco)
    100 Pine Street, Suite 2600, Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco), CA 94111
    415.288.4545 415.288.4534 · info@lerachlaw.com
  6. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
  7. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  8. Reinhardt, Wendorf & Blanchfield Attorneys at Law
    E-1000 First National Bank Building, 332 Minnesota Street, Reinhardt, Wendorf & Blanchfield Attorneys at Law, MN 55101
    800.465.1592 651.297.6543 · info@ralawfirm.com
  9. 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
  10. 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