According to a press release dated April 16, 2007, a class action has been commenced on behalf of all shareholders of Plaintiffs' Shareholders Corporation ("PSC") who owned shares in PSC on or after the dissemination of a Proxy Statement on September 29, 2004 and through October 15, 2004, the date of a Special Meeting of Stockholders of PSC at which PSC approved the sale of a debenture to Southern Farm Bureau Life Insurance Company ("Southern Life"), and the date that the sale of the debenture was completed (the "Class").
The securities class action complaint was filed on behalf of the Plaintiffs, who comprise a class consisting of all of the shareholders of PSC who sold their shares in PSC as a result of Southern Life's alleged fraudulent and unlawful omissions and misrepresentations of material facts in connection with Southern Life's purchase of a security held by PSC and referred to as a "debenture." The action alleges that Southern Life violated federal securities laws under Section 10(b) of the 1934 Act and Rule 10b-5 by omitting material facts and misrepresenting material facts in connection with Southern Life's purchase of the debenture from PSC and resulting in the sale of the class members' shares in PSC. The action also asserts claims of common law fraud under Florida law associated with the same omissions of material fact and misrepresentations of material fact.
On June 5, 2006, defendant Southern Farm Bureau Life Insurance Company filed a Motion to Dismiss Complaint or in the Alternative, to Transfer Venue to the Northern District of Florida. On March 30, 2007, U.S. District Judge John Antoon II denied the motion the motion to dismiss or alternatively to transfer. On September 26, 2007, the plaintiffs filed a motion to certify the class. On March 19, 2008, Magistrate Judge Karla R. Spaulding issued a Report and Recommendation, recommending the Court to deny the motion to certify the class and dismiss the complaint. On April 25, 2008, Judge Antoon adopted the Report and Recommendation denying the motion to certify the class, dismissing the complaint and allowing the plaintiffs file an amended class action complaint. On May 8, 2008, the plaintiff filed an Amended Verified Derivative Complaint for Violations of Federal Securities Laws.
On May 9, 2008, the plaintiffs filed a Notice of Appeal as to the April 25, 2008 Order. On October 31, 2008, the defendant filed a motion for summary judgment. On December 11, 2008, the Court entered the Order from the Eleventh Circuit Court of Appeals. According to the Order, the appeal was dismissed for lack of jurisdiction. On March 6, 2009, District Judge Mary S. Scriven denied the motion for summary judgment.
On March 9, 2009, the first day of the Civil Jury Trial was held before Judge Mary S. Scriven. On the eighth day, held on March 19, 2009, the jury returned with a two verdicts regarding the Securities Fraud Claim and the Common Law Fraud Claim. Both verdicts were in favor of the plaintiff and that the plaintiffs should be awarded $31.7 million in damages.
On April 3, 2009, defendant Southern Farm Bureau Life Insurance Company filed a motion for judgment and a motion for a new trial. On May 6, 2009, the motion for judgment was denied. The order was amended on May 7, 2009. Judgment was entered in favor of the plaintiffs on May 8, 2009. On May 18, 2009, the defendant Southern Farm Bureau Life Insurance Company again filed a renewed motion for judgment and motion for new trial.
On June 8, 2009, defendant Southern Farm Bureau Life Insurance Company filed a Notice of Appeal as to the May 8, 2009 Judgment in favor of the plaintiffs. On July 27, 2009, Judge Mary S. Scriven denied the motion renewed motion for judgment and motion for new trial. On October 1, 2009, an Amended Judgment in favor of the defendants was entered.
On October 6, 2010, the Court entered the U.S. Court of Appeal Judgment as to the pending Notice of Appeal filed by Southern Farm Bureau Life Insurance Company. According to the Judgment, the judgment of the District Court is reversed and case is remanded for proceedings consistent with this opinion.
On February 24, 2011, the plaintiffs filed a Second Amended Complaint.
On March 29, 2011, Judge Mary S. Scriven directed the Clerk to terminate all pending motions without prejudice and to administratively close this case pending the Court's determination of the arbitration issue. An appeal was filed June 6, 2011. On June 15, 2011, Judge Scriven again administratively closed the case.