Case Page

 

Case Status:    DISMISSED    
On or around 02/14/2007 (Date of order of final judgment)

Filing Date: August 17, 2006

According to the docket, the judge granted the defendants' motion to dismiss the case on February 14, 2007 and followed that with an order to close the case on April 4, 2007. The plaintiffs have not filed an appeal.

On October 26, 2006, the Court entered the order consolidating several class actions. On November 1, 2006, the Court entered the Order appointing the Haugh Group as Lead Plaintiff and Approving Haugh Group's choice of Lead Counsel. On November 8, 2006, the plaintiffs filed a Consolidated Amended Class Action Complaint. The defendants have responded by filing a motion to dismiss the Consolidated Amended Class Action Complaint on December 1, 2006.

The original lawsuit claims that Parlux, its Chief Executive, and its Chief Financial Officer violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Further, the lawsuit alleges that throughout the Class Period, defendants issued highly positive statements in an effort to create the impression that Parlux's revenues were growing and the Company was well positioned to generate strong profits. In response, Parlux stock traded at over $37 per share (prior to a stock split) during the Class Period. Starting in June 2006, the truth about the Company's declining sales and accounting issues were revealed in a series of disclosures indicating that: (1) contrary to prior public statements, Parlux's sales were declining materially, including sales to related parties; and (2) the Company suffered from internal control issues with respect to its financial reporting, causing Parlux to delay the filing of its Annual Report on Form 10-K for the year ended March 31, 2006, and delaying its quarterly report on Form 10-Q for the quarter ending June 30, 2006. Prior to revealing this information, defendants and Company insiders sold over $13 million worth of their Parlux holdings.

The complaint further alleges that on or around August 10, 2006, the Company issued yet another shocking announcement, that Parlux's profit for the quarter ended June 30, 2006 would be far less than the investing public had been led to believe, due mainly to lower sales to U.S. department stores and related parties. On this news, Parlux stock plunged from $8.16 a share to $4.78, a drop of over 40% on unusually high volumes of over 5 million shares traded -- vastly higher than the Company's average trading volume of around 1.1 million shares traded.

COMPANY INFORMATION:

Sector: Consumer Non-Cyclical
Industry: Personal & Household Products
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: PARL
Company Market: NASDAQ
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: S.D. Florida
DOCKET #: 06-CV-61250
JUDGE: Hon. Paul C. Huck
DATE FILED: 08/17/2006
CLASS PERIOD START: 02/08/2006
CLASS PERIOD END: 08/10/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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
  2. Saxena White PA (Boca Raton)
    2424 North Federal Highway, Suite 307, Saxena White PA (Boca Raton), FL 33431
    800.361.5096 888.782.3081 · info@saxenawhite.com
No Document Title Filing Date
COURT: S.D. Florida
DOCKET #: 06-CV-61250
JUDGE: Hon. Paul C. Huck
DATE FILED: 11/08/2006
CLASS PERIOD START: 11/15/2005
CLASS PERIOD END: 08/10/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Saxena White PA (Boca Raton)
    2424 North Federal Highway, Suite 307, Saxena White PA (Boca Raton), FL 33431
    800.361.5096 888.782.3081 · info@saxenawhite.com
No Document Title Filing Date
No Document Title Filing Date