Helen of Troy, Ltd. produces consumer brand-name housewares, health and home, and beauty products.

The original Complaint alleges Defendants, Helen of Troy, its Chief Executive Officer, and its Chief Financial Officer violated sections 10(b) and 20(a) of the Exchange Act, and Rule 10b-5, by issuing a series of material misrepresentations to the market during the Class Period.

The Complaint alleges that Defendants engaged in a scheme to defraud shareholders through the issuance of positive earnings guidance intended to artificially inflate Company stock for which their was no legitimate support. Guidance for 2006 was announced as part of the fiscal third quarter of 2005 results, the inflation of which mislead the investing public. Immediately following this increase in the stock price to its class period high, Defendant Rubin sold almost 400,000 shares at its peak price of $33.00 per share- netting proceeds of almost $13 million on the improper guidance. On October 11, 2005, the Company substantially lowered its unattainable guidance for 2006 and reported a year over year decline in revenues during its second quarter. On this news, the stock lost 21%, falling to $15.55 per share on a volume of 4.4 million shares - more than 15 times its daily average.

As summarized by the Company’s FORM 10-Q for the quarterly period ended August 31, 2006, class action lawsuits have been filed and consolidated into one action against the Company, Company’s Chairman of the Board, President and Chief Executive Officer, and the Company’s Chief Financial Officer, on behalf of purchasers of publicly traded securities of the Company. On May 15, 2006 the Company filed a motion to dismiss the aforementioned lawsuit citing numerous deficiencies with the claims asserted in the lawsuit. On June 29, 2006, the Plaintiffs filed with the court their opposition to the Company’s motion to dismiss. On July 17, 2006 the Company filed a reply rebutting the Plaintiffs’ June 29th opposition.

On May 24, 2007 the judge denied Defendants' motion to dismiss the Complaint.

The parties entered into a Stipulation of Settlement on January 15, 2008. The Court granted preliminary approval of the Settlement on January 28.

On June 19, 2008, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

On April 2, 2009, the Court issued an Order approving distribution of the Settlement funds.