According to a press release dated August 15, 2007, on July 10, 2007, the Third U.S. Circuit Court of Appeals affirmed a district court's dismissal of a securities fraud class action against a company and its officers, finding that the plaintiffs failed to allege scienter with particularity as required by the Private Securities Litigation Reform Act (PSLRA).
On May 1, 2006, the plaintiff filed a Notice of Appeal in the Third Circuit Court of Appeals.
In a press release dated April 4, 2006, Stonepath Group, a global logistics services organization, announced that the United States District Court for the Eastern District of Pennsylvania has granted Stonepath's motion to dismiss the second consolidated amended class action complaint with regard to In re Stonepath Group, Inc. Securities Litigation. The order granting the motion to dismiss does not provide the plaintiff with the opportunity to file an amended complaint and enters judgment in favor of the defendants. If the plaintiffs choose to proceed, they could appeal the district court's ruling to the United States Court of Appeal for the Third Circuit.
On November 15, 2005, the plaintiffs filed a Second Amended Consolidated Class Action Complaint agains the defendants
In a press release dated November 1, 2005, Stonepath Group (AMEX: STG), a global logistics services organization, today announced the dismissal of the consolidated class action complaint In re Stonepath Group, Inc. Securities Litigation. The complaint alleged claims for securities fraud under the Securities Exchange Act of 1934. It was filed earlier this year in the United States District Court for the Eastern District of Pennsylvania after the consolidation of eight separate actions that were filed last fall shortly after Stonepath announced that it would restate its financial statements for prior periods. The order dismissing the complaint provides the plaintiff with the opportunity to file an amended complaint.
The original complaint charges Stonepath Group, Inc., and certain of its officers and directors with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented that the Company understated its accrued purchased transportation liability and related costs of purchased transportation rendering the Company's Class Period financial statements materially false and misleading because they understated the Company's liabilities and expenses, and overstated the Company's net income and earnings before income, taxes, depreciation, and amortization ('EBITDA'). As a result of the above, the Company's reported financial results were in violation of GAAP. On September 20, 2004, the Company reported that it intended to restate its fiscal year 2003 and first and second quarter of 2004 financial statements. As a result of this news, the price of StonePath stock closed at $0.86 per share (on heavy trading volume of 4,830,200 shares), a 46% decrease from its close on September 19, 2004.