Case Page

 

Case Status:    SETTLED
On or around 03/26/2009 (Date of order of final judgment)

Filing Date: June 20, 2006

The original Complaint alleges that defendants Home Solutions of America, Inc. and certain officers and directors violated federal securities laws by issuing a series of materially false statements. Specifically, on April 11, 2006, Home Solutions announced that it had been awarded a contract valued at up to $20 million, to provide infrastructure support for Hurricane Katrina rebuilding efforts. Subsequently, Home Solutions announced a string of contract awards, including substantial contracts with Home Depot Inc. and American Renaissance Homes ("ARH"), a builder that had purportedly contracted with Home Solutions to provide services in connection with the Katrina rebuilding efforts.

On June 20, 2006, a class action lawsuit was filed in the United States District Court for the Northern District of Texas. On June 27, 2006 and on July 6, 2006, two additional class action lawsuits were filed in the United States District Court for the Northern District of Texas. Home Solutions and its directors are named as defendants in those actions. The allegations in these two additional class action lawsuits are substantially similar to those in the first lawsuit. On January 10, 2007, the Court consolidated two of the class action cases and appointed lead plaintiffs and lead counsel for the consolidated case. On March 12, 2007, the lead plaintiffs filed a consolidated amended complaint asserting claims under Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 against the same defendants as in the original complaints as well as against several additional defendants, including a member of the Company’s board of directors and Sanders Morris Harris Group, Inc. On June 13, 2007, the Court consolidated the third class action case into the existing consolidated case. The Company and the individual defendants moved to dismiss the consolidated amended complaint.

On March 24, 2008, the Court granted in part and denied in part Sanders Morris's motion to dismiss [40] and granted in part and denied in part Home Solutions's motion to dismiss [42]. Specifically, the Court dismissed Investors' section 10(b) claims against Sanders Morris, Chadwick, Mattich, O'Brien, Marshall, and McCusker. The Court further dismissed each section 10(b) claim against Fradella and the Home Solutions corporate entity, except the claim involving the May 23 press release. The Investors' section 20(a) claims remain viable. Furthermore, according to the Order, the plaintiffs have 30 days to file an amended complaint. On March 26, 2008, individual defendant and Sanders Morris Harris Group, Inc. filed a supplemental motion to dismiss section 20(a) claims. On April 22, 2008, U.S. District Judge David C. Godbey granted Sanders Morris’ motion to dismiss section 20(a). On May 7 and 23, 2008, certain individual defendants filed motions for judgment on the pleadings.

According to the docket, the parties have entered into settlement negotiations. On October 20, 2008, the parties filed a Stipulation and Agreement of Settlement and a motion for preliminary approval of the settlement. The proposed settlement is in the amount of $3,500,000 in cash. On November 6, 2008, an Amended Stipulation and Agreement of Settlement was filed.

According to the Order dated March 13, 2009, because of the pending proposed settlement, the Court denied both Motions for Judgment on the Pleadings without prejudice.

On March 25, 2009, the Court issued the Order and Final Judgment approving the settlement. Plaintiffs’ Counsel are awarded 28.7% in fees of the amounts collected for the Gross Settlement Fund, which sum the Court finds to be fair and reasonable, and $94,783.29 in reimbursement of expenses. The civil case is terminated.

COMPANY INFORMATION:

Sector: Services
Industry: Business Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: HOM
Company Market: American 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. Texas
DOCKET #: 06-CV-01096
JUDGE: Hon. David C. Godbey
DATE FILED: 06/20/2006
CLASS PERIOD START: 04/11/2006
CLASS PERIOD END: 06/06/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  2. Howard G. Smith, Attorney at Law
    3070 Bristol Pike, Suite 112, Howard G. Smith, Attorney at Law, PA 19020
    215.638.4847 215.638-4867 ·
  3. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  4. 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
No Document Title Filing Date
COURT: N.D. Texas
DOCKET #: 06-CV-01096
JUDGE: Hon. David C. Godbey
DATE FILED: 03/12/2007
CLASS PERIOD START: 04/11/2006
CLASS PERIOD END: 03/05/2007
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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
  2. Scott & Scott LLP (New York-former)
    29th West 57th Street, 14th Floor, Scott & Scott LLP (New York-former), NY 10019
    212.223.6444 212.223.6334 · scottlaw@scott-scott.com
  3. Scott & Scott LLP (San Diego)
    600 B Street, Suite 1500, Scott & Scott LLP (San Diego), CA 92101
    619.233.4565 619.233.4565 · scottlaw@scott-scott.com
No Document Title Filing Date