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Case Status:    SETTLED
On or around 09/21/2010 (Date of order of distribution of settlement)

Filing Date: February 10, 2006

The judge granted preliminary approval of the settlement on November 20, 2008. A fairness hearing is set for March 12, 2009 where members of the class will be able to voice their objections to the settlement prior to a final ruling.

Discovery continued over the course of a year until parties filed a Stipulation of Settlement on November 12, 2008. As part of the agreement to drop claims against the company and its officers, the defendants will establish a settlement fund of $20 million, to be paid within 10 days of preliminary approval. Plaintiffs' attorneys intend to apply for fees of 30% and reimbursement of expenses of $285,000. According to Voyager Learning Company's Annual Report submitted on September 17, 2008, the settlement will largely be funded by insurers.

According to an article November 13, 2007, Judge Avern Cohn of the Eastern District of Michigan last week denied ProQuest and its executives' motions to dismiss the case, ruling that the company's shareholders had provided sufficient evidence to let the case proceed. The suit, which consolidated four shareholder cases, accused the publishing company of failing to have adequate accounting controls which led to earnings restatements and stock price plunges.

On May 2, 2006, the Court entered the Stipulation and Order U.S. District Judge Avern Cohn granting the motion to consolidate the related actions and to appoint lead plaintiffs and to approve lead plaintiffs’ choice of co-lead counsel. On July 17, 2006, the plaintiffs filed a Consolidated Class Action Complaint. The defendants responded by filing motions to dismiss the Consolidated Class Action Complaint.

The original Complaint alleges defendants violated federal securities laws by issuing a series of materially false statements regarding ProQuest's financial condition. Specifically, defendants concealed the following facts: (i) the Company lacked requisite internal controls, and, as a result, the Company's projections and reported results were based upon defective assumptions and/or manipulated facts; and (ii) the Company's financial statements were materially misstated due to its failure to properly defer income and royalty payments and its improper capitalization of royalty expenses, thereby overstating its revenue and income from at least 1999 to 2005.

The complaint further alleges that on or around February 9, 2006, prior to the market opening, ProQuest announced that it had discovered material irregularities in its accounting and would have to restate certain of its previously issued financial statements. As a result of the irregularities, the Company's deferred income and accrued royalty accounts were materially understated in previously issued financial statements and its prepaid royalty account was materially overstated. On this news, ProQuest's stock fell almost 18% from the previous day's close to close at $24.19 per share. During the Class Period, ProQuest traded as high as $37.89 per share on April 12, 2005.

The lawsuit was filed on behalf of all persons who purchased or acquired the common stock of ProQuest Company during the Class Period, and including those who acquired ProQuest through its acquisition of Voyager Expanded Learning.

COMPANY INFORMATION:

Sector: Services
Industry: Printing & Publishing
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: PQE
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 #: 06-CV-10619
JUDGE: Hon. Avern Cohn
DATE FILED: 02/10/2006
CLASS PERIOD START: 01/09/2003
CLASS PERIOD END: 02/08/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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
  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. Dyer & Shuman, LLP
    801 E. 17th Avenue, Dyer & Shuman, LLP , CO 80218-1417
    303.861.3003 800.711.6483 · info@dyershuman.com
  4. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
  5. Kahn Gauthier Swick, LLC (New Orleans)
    650 Poydras St. Suite 2150, Kahn Gauthier Swick, LLC (New Orleans), LA 70130
    504.455.1400 · lewis.kahn@kglg.com
  6. 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
  7. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  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. Smith & Smith LLP
    3070 Bristol Pike, Suite 112, Smith & Smith LLP, PA 19020
    215.638.4847 215.638.4867 ·
No Document Title Filing Date
COURT: E.D. Michigan
DOCKET #: 06-CV-10619
JUDGE: Hon. Avern Cohn
DATE FILED: 07/17/2006
CLASS PERIOD START: 02/20/2001
CLASS PERIOD END: 04/27/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Kaplan Fox & Kilsheimer, LLP (former New York, NY)
    805 Third Avenue, 22nd Floor, Kaplan Fox & Kilsheimer, LLP (former New York, NY), NY 10022
    212.687.1980 212.687.7714 · info@kaplanfox.com
  2. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
No Document Title Filing Date