On December 5, 2007, the defendants’ March 16, 2007 motion to dismiss the First Amended Complaint was granted without prejudice and the plaintiff was given until December 28, 2007 to file an amended complaint. The plaintiff did not file amended complaint and instead filed a Stipulation of Dismissal with Prejudice on February 14, 2008. On February 19, 2008, U.S. District Judge Liam O'Grady dismissed the action with prejudice and without costs.
On January 26, 2007 the Court appointed Jeff Shiring as lead plaintiff and the Rosen Law Firm as lead counsel. On February 23, 2007 plaintiffs filed the First Amended Complaint and filed a motion to certify this lawsuit as a class action. One of the individual defendants was dropped with the filing of the new complaint. On March 16, 2007 the defendants moved to dismiss the Complaint and opposed the class certification motion. On May 7, 2007, the plaintiff filed a Corrected First Amended Complaint and Corrected Motion for Class Certification. On July 23, 2007, the plaintiff’s motion for class certification was denied.
The original complaint charges that Tier and certain of its present and former officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing materially false and misleading financial statements filed with the SEC during the Class Period by overstating Company earnings and underreporting Company losses.
Specifically, the Complaint alleges that on December 14, 2005, the Company announced that its financial statements for fiscal years ended September 30, 2002 through September 30, 2004 and quarterly periods through June 30, 2005, should no longer be relied upon and announced that a restatement of those financial statements would be required.
The Complaint further alleges that on April 19, 2006, the Company announced that an internal investigation revealed a "number of serious new allegations relevant to the restatement-related issues." On May 24, 2006, the Company announced that its stock would be de-listed from NASDAQ. On October 25, 2006, the Company finally issued its long awaited restatement. The complaint alleges that the Company had over-reported its net income and underreported its net losses for almost five years. For example, the Company previously reported diluted per share net income for fiscal 2004, rather than the true restated net loss for fiscal 2004. The complaint asserts that these adverse disclosures have caused the Company's stock price to decline.