Case Page

 

Case Status:    SETTLED
On or around 08/09/2007 (Ongoing date of last review)

Filing Date: May 20, 2005

On November 15, 2007, the settlement hearing was held and the settlement was approved. That day, the Court entered the Judgment and the case is now closed.

According to a press release dated August 8, 2007, Corn Products International Inc. said Wednesday it has agreed to pay $6.6 million to settle claims that it made false statements regarding its 2005 financial forecast. The agreement, which was preliminarily approved by the U.S. District Court for the Northern District of Illinois in June, settles a consolidated class action lawsuit in which shareholders accused the corn refiner of violating federal securities laws. Any purchasers of Corn Products securities between Jan. 25, 2005 and April 4, 2005 are eligible to claim a piece of the settlement, which will also cover attorneys' fees. A hearing is scheduled in the Illinois federal court in November to finalize the agreement.

On June 14, 2006, the Court entered the Memorandum Opinion and Order signed by U.S. District Judge James B. Zagel denying the defendants’ motion to dismiss the Consolidated Class Action Amended Complaint. On October 11, 2006, the plaintiffs filed a motion to certify the class.

As disclosed by the Company’s FORM 10-K for the fiscal year ended December 31, 2005, between May and June of 2005, the Company, Samuel Scott and Cheryl Beebe were named as defendants in five purported securities class action suits filed in the United States District Court for the Northern District of Illinois. The complaints alleged violations of certain federal securities laws and sought unspecified damages on behalf of a purported class of purchasers of the Company’s common stock between January 25, 2005 and April 4, 2005. In August 2005, all of these class actions were consolidated in the matter of Monty Blatt v. Corn Products International, Inc. (N.D. Ill. 05 C 3033). In November 2005, plaintiffs filed a consolidated amended complaint containing essentially the same legal claims. Cheryl Beebe was not named as a defendant in the consolidated amended complaint.

The original complaint charges Corn Products and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Corn Products manufactures and sells starches, liquid sweeteners and other ingredients to food and industrial customers in over 60 industries around the world.

Specifically, the Complaint alleges that, during the Class Period, defendants issued materially false and misleading statements concerning the Company's future prospects. Specifically, the complaint alleges that these statements were materially false and misleading because, at the time that these statements were made, defendants knew, but failed to disclose and/or misrepresented: (i) that the Company was experiencing manufacturing problems at certain of its facilities that were causing its expenses to rise dramatically above internally forecasted levels. These problems caused certain of the Company's processing facilities to close and/or slowdown production thereby raising expenses; (ii) that the Company had contracted for corn in Canada in the late Fall of 2004 at prices higher than present prevailing prices, thereby forcing the Company to purchase corn at above-market prices and further eroding the Company's profit margins. In other words, the Company's hedging strategy related to its Canadian corn purchases was then negatively impacting its financial results and would continue to do so for the next year; and (iii) given the foregoing, Defendants lacked a reasonable basis for their positive statements concerning the Company and its earnings and prospects.

The complaint further alleges that on or around April 5, 2005, before the market opened, Corn Products issued a press release announcing that it expected first quarter earnings to decline by 35 to 40 percent from the first quarter of 2004, due primarily to the timing of corn purchases, increased expenses, and manufacturing expense problems. In response to this announcement, the price of Corn Products common stock declined precipitously, falling from $25.86 per share to $20.98 per share, on extremely heavy trading volume.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: CPO
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: N.D. Illinois
DOCKET #: 05-CV-03033
JUDGE: Hon. James B. Zagel
DATE FILED: 05/20/2005
CLASS PERIOD START: 01/25/2005
CLASS PERIOD END: 04/04/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Ademi & O'Reilly, LLP
    3620 East Layton Ave., Ademi & O'Reilly, LLP, WI 53110
    866-264-3995 414-482-8001 · inquiry@ademilaw.com
  2. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  3. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC), DC 20005
    202.408.4600 202.408.4699 · lawinfo@cmht.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. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.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. 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
No Document Title Filing Date
COURT: N.D. Illinois
DOCKET #: 05-CV-03033
JUDGE: Hon. James B. Zagel
DATE FILED: 11/28/2005
CLASS PERIOD START: 01/25/2005
CLASS PERIOD END: 04/04/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Ademi & O'Reilly, LLP
    3620 East Layton Ave., Ademi & O'Reilly, LLP, WI 53110
    866-264-3995 414-482-8001 · inquiry@ademilaw.com
  2. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC), DC 20005
    202.408.4600 202.408.4699 · lawinfo@cmht.com
  3. 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
  4. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  5. Miller Faucher and Cafferty LLP
    30 North LaSalle Street, Miller Faucher and Cafferty LLP, IL 60602
    312.782.4880 ·
  6. Robert D. Allison & Associates
    122 S. Michigan Avenue Ste 1850 , Robert D. Allison & Associates, IL 60603
    ·
  7. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  8. 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
  9. Weiss & Lurie (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Lurie (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
No Document Title Filing Date
No Document Title Filing Date