Case Page

 

Case Status:    SETTLED
On or around 02/24/2004 (Other)

Filing Date: February 12, 2001

According to the docket, on July 31, 2003, the Court entered the Order by U.S. District Judge Lawrence L. Piersol preliminarily approving the Settlement. On February 25, 2004, the Court entered the Memorandum, Opinion and Order granting the motion for final approval of the settlement and plan of allocation of the settlement proceeds, and granting in part and denying in part the motion for attorney fees. The Court further entered that day the Judgment signed by Judge Piersol.

By the Notice of Pendency and Settlement, the parties reached an agreement-in-principle to settle the action. The proposed Settlement creates a fund of $8,000,000. Depending on the number of eligible shares purchased by Settlement Class Members who elect to participate in the Settlement and when those shares were purchased and sold, the estimated average recovery per share will be approximately $0.30 before deduction of Court-approved fees and expenses.

If the Settlement is approved by the Court, counsel for the Representative Plaintiffs will apply to the Court for attorneys' fees of 30% of the Settlement Fund. Counsel also plan to seek reimbursement of out-of-pocket expenses from the Settlement proceeds. If the amount requested by counsel is approved by the Court, the average cost per share would be $0.10.

The original Complaint alleges, among other things, that IBP and certain of its top officers issued false and misleading public statements about IBP's earnings and revenue during the Class Period in its public filings with the Securities and Exchange Commission ("SEC") and press releases. Plaintiff alleges that on January 25, 2001, IBP belatedly disclosed that the SEC had sent IBP's lawyers a comment letter on December 29, 2000, citing 45 apparent instances of improper accounting in financial reports filed by the Company, including the accounting at its DFG Foods Subsidiary ("DFG"). As a result, in a press release on January 26, 2001, IBP announced that it would take a pre-tax charge of at least $47 million against year 2000 earnings to compensate for the accounting errors involving DFG, and that it may need to further adjust its financial results to reflect impairment of goodwill or other long-lived assets associated with DFG. The public dissemination of materially misleading financial information caused IBP's common stock to be artificially inflated throughout the Class Period. The market price of IBP stock dropped almost $4.00, or about 15%, following the Company's belated disclosure of the accounting irregularities.

COMPANY INFORMATION:

Sector: Consumer Non-Cyclical
Industry: Food Processing
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: IBP
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. South Dakota
DOCKET #: 01-CV-04031
JUDGE: Hon. Lawrence L. Piersol
DATE FILED: 02/12/2001
CLASS PERIOD START: 02/07/2000
CLASS PERIOD END: 01/25/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Law Firm of Harvey Greenfield (New York)
    60 East 42nd Street, Suite 2001, Law Firm of Harvey Greenfield (New York), NY 10165
    212.949.5500 212.949.0049 · hgreenf@banet.net
  2. Morris and Morris LLC (Former Address)
    1105 North Market Street, Suite 1600, Morris and Morris LLC (Former Address), DE 19801
    800.296.0410 · firm@morrisandmorrislaw.com
No Document Title Filing Date
COURT: D. South Dakota
DOCKET #: 01-CV-04031
JUDGE: Hon. Lawrence L. Piersol
DATE FILED: 09/07/2001
CLASS PERIOD START: 02/07/2000
CLASS PERIOD END: 01/25/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
  2. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
No Document Title Filing Date
No Document Title Filing Date