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Case Status:    SETTLED
On or around 03/03/2010 (Date of order of final judgment)

Filing Date: September 11, 2006

The original complaint charges ADVO and certain of its officers and directors with violations of the Securities Exchange Act of 1934. ADVO is a direct mail media company that engages in soliciting and processing printed advertising from retailers, manufacturers, and service companies in the United States and Canada.

Specifically, the complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and financial results, concealing material adverse problems in ADVO's long-term financial health and intrinsic value. Defendants concealed this information in order to accomplish a merger which the Company had entered into with Valassis Communications, Inc. ("Valassis"), a leading company in marketing services, to create the largest integrated media services provider in the nation. Valassis was acquiring all of ADVO's outstanding common stock in an all cash transaction. As a result of defendants' false statements, investors believed the acquisition would occur, causing ADVO's stock to trade at artificially inflated prices during the Class Period, reaching a high of $36.80 per share in August 2006. Then, on August 30, 2006, Valassis announced that it had filed an action to rescind its merger agreement with ADVO. On this news, the Company's shares fell to $28.59 per share.

According to the complaint, to accomplish the merger, ADVO officers and employees concealed material information, including that: (a) its business had deteriorated so badly that it would never be replaced; (b) its financial internal controls were woefully inadequate; and (c) its business was not as nearly successful as the market and Valassis had been led to believe.

On April 24, 2007, Judge Alfred V. Covello signed an order granting the plaintiff's motion to consolidate several similar class actions, approval of Robert Kelleher to act as lead plaintiff and the selection of Lerach Coughlin Stoia Geller Rudman & Robbins to serve as lead counsel. Plaintiff's filed their consolidated complaint on June 8, 2007. On April 28, 2008 the lead plaintiff defeated the defendants' motion to dismiss the case.

On August 29, 2008, the lead plaintiff filed a motion to certify the class, which was approved on March 30, 2009. The parties soon after engaged in mediation proceedings. On October 28, 2009, a Stipulation of Settlement and motion for preliminary approval of the class action settlement were filed. The proposed settlement is in the amount of $12,500,000 in cash. On December 10, 2009, Judge Alfred V. Covello signed the Order preliminarily approving the settlement and providing for notice. A Settlement Hearing is scheduled for March 3, 2010.

On March 3, 2010, Judge Alfred V. Covello signed the orders approving the attorney fees and expenses, the plan of allocation and the final settlement. The action is now dismissed with prejudice.

COMPANY INFORMATION:

Sector: Services
Industry: Advertising
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: AD
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: D. Connecticut
DOCKET #: 06-CV-01422
JUDGE: Hon. Alfred V. Covello
DATE FILED: 09/11/2006
CLASS PERIOD START: 07/06/2006
CLASS PERIOD END: 08/30/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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
  2. 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 ·
  3. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
No Document Title Filing Date
COURT: D. Connecticut
DOCKET #: 06-CV-01422
JUDGE: Hon. Alfred V. Covello
DATE FILED: 06/08/2007
CLASS PERIOD START: 07/06/2006
CLASS PERIOD END: 08/30/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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 ·
No Document Title Filing Date
No Document Title Filing Date