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Case Status:    SETTLED
On or around 11/18/2011 (Date of order of final judgment)

Filing Date: April 05, 2005

The original complaint charges Collins & Aikman and certain of its current and former officers with violations of the Securities Exchange Act of 1934. More specifically, the complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company improperly accounted for certain supplier rebates; (2) that the Company's financial statements required net adjustments of approximately $10 - $12 million; (3) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (5) that as a consequence of the foregoing, the Company's net income and financial results were materially overstated at all relevant times.

The complaint further alleges that on or around March 17, 2005, Collins & Aikman announced that after the review of vendor rebates covered an aggregate of approximately $88 million of vendor transactions in fiscal years 2002 through 2004, the company's management believes that net adjustments of approximately $10 - $12 million are required primarily occurring during fiscal 2004. News of this shocked the market. Shares of Collins & Aikman fell $0.39 per share or 23.93 percent, on March 17, 2005, to close at $1.24 per share.

On May 17, 2005, Collins & Aikman filed voluntary petitions to reorganize under Chapter 11 of the U.S. Bankruptcy Code and is no longer named as a defendant. On June 8, 2005, plaintiff Joseph Bruno, the plaintiff in the first filed complaint, filed a Notice of Voluntary Dismissal. Similar cases that were also filed in the U.S. District Court for the Eastern District of Michigan were also voluntarily dismissed. Additional complaints were filed against certain officers and/or directors of Collins & Aikman Corporation in the U.S. District Court for the Southern District of New York.

As summarized by the lead counsel’s website, on June 6, 2005, motions were made to consolidate the various cases and appoint lead plaintiff and lead counsel. On December 1, 2005, the court consolidated the cases. A consolidated complaint was filed on January 13, 2006. On March 2, 2006, defendants filed a motion to transfer the case to the Eastern District of Michigan. Plaintiff filed an opposition on March 17, 2006. Defendants' filed their motions to dismiss on March 18, 2006. Plaintiff filed an opposition on April 21, 2006, and defendants replied on May 5, 2006. On July 10, 2006, Judge Mukasey of the Southern District of New York officially appointed Wolf Haldenstein lead counsel. On July 12, 2006, he granted defendants' motion for transfer and ordered the clerk to the transfer the case to the Eastern District of Michigan. Because of the transfer, Judge Mukasey declined to rule on defendants' pending motions to dismiss.

On October 19, 2006, on of the individual defendants was voluntarily dismissed with prejudice. On January 11, 2007, defendants’ pending motion to dismiss were denied as moot. On May 4, 2007, a Second Amended Consolidated Class Action Complaint was filed and the defendants responded by filing several motions to dismiss the Second Amended Consolidated Class Action Complaint on July 31, 2007. On August 6, 2007, the Court entered the Order granting the motion to dismiss the Second Consolidated Class Action Complaint as to one of the individual defendants. On March 19, 2008, U.S. District Arthur J. Tarnow denied two of defendants’ motions to dismiss and granted in part and denied in part one of the defendant’s motion to dismiss. The parties have since been engaged in settlement conferences and discovery.

On February 17, 2010, a motion for preliminary approval of settlement was filed. According to the Stipulation and Agreement of Settlement, the proposed settlement is in the amount of $12,262,500. On February 24, 2010, the settlement was preliminarily approved. The Settlement Fairness Hearing is scheduled to be held before the Court on June 7, 2010.

On June 7, 2010, the settlement fairness hearing was held and the settlement was approved by District Judge Gerald E. Rosen. The case is now dismissed with prejudice.

On April 14, 2011, the Court issued a Settlement Distribution Order awarding the payment of fees and expenses to the claims administrator and awarding additional attorney's expenses.

COMPANY INFORMATION:

Sector: Consumer Cyclical
Industry: Auto & Truck Parts
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CKC
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: E.D. Michigan
DOCKET #: 05-CV-71325
JUDGE: Hon. Marianne O. Battani
DATE FILED: 04/05/2005
CLASS PERIOD START: 05/06/2004
CLASS PERIOD END: 03/17/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Baron & Budd, P.C. (Dallas)
    3102 Oak Lawn Avenue, Suite 1100, Baron & Budd, P.C. (Dallas), TX 75219
    800-946-9646 · info@baronbudd.com
  2. Berman DeValerio Pease Tabacco Burt & Pucillo (MA)
    One Liberty Square, Berman DeValerio Pease Tabacco Burt & Pucillo (MA), MA 2109
    617.542.8300 617.230.0903 · info@bermanesq.com
  3. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
  4. Law Offices of Brian M. Felgoise, P.C.
    Esquire at 261 Old York Road, Suite 423, Law Offices of Brian M. Felgoise, P.C., PA 19046
    215.886.1900 · securitiesfraud@comcast.net
  5. 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
  6. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    200 Broadhollow, Suite 406, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@lerachlaw.com
  7. Murray, Frank & Sailer LLP
    275 Madison Ave 34th Flr, Murray, Frank & Sailer LLP, NY 10016
    212.682.1818 212.682.1892 · email@murrayfrank.com
  8. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  9. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  10. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
  11. 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
  12. 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: E.D. Michigan
DOCKET #: 06-CV-13555
JUDGE: Hon. Marianne O. Battani
DATE FILED: 05/04/2007
CLASS PERIOD START: 08/06/2002
CLASS PERIOD END: 05/17/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Gainey & McKenna, LLP (former)
    485 Fifth Avenue, 3rd Floor, Gainey & McKenna, LLP (former), NY 10017
    212.983.1300 212.983-0383 · tjmckenna@gaineyandmckenna.com
  2. Miller Law LLC
    115 S. LaSalle Street, Suite 2910, Miller Law LLC, IL 60603
    312.676.2665 · info@MillerLawLLC.com
  3. 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
No Document Title Filing Date