The Children's Place Retail Stores, Inc. ("The Children’s Place"), through its subsidiaries, operates as a specialty retailer of merchandise for children from newborn to ten years of age. The Company designs, contracts to manufacture, and sells apparel and accessories, and other children’s-oriented merchandise under The Children’s Place and Disney Store brand names.

According to a law firm press release, a class action Complaint was filed against the Defendants for violations of the Securities Exchange Act of 1934. The Complaint charges The Children's Place and certain of its officers and directors with violations of the Exchange Act.

According to the Complaint, during the Class Period, Defendants issued materially false and misleading statements that misrepresented and failed to disclose: (i) that the Company was experiencing difficulties meeting certain deadlines for the remodeling and maintenance of its Disney stores and Disney was not satisfied with the Company’s performance under their agreement; (ii) that, as a result of the Company’s performance issues, the Company’s exclusive ability to contract, manufacture, source, offer and sell merchandise featuring Disney-branded characters, past, present and future was at risk of being materially altered and/or lost completely; and (iii) as a result of the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company, its prospects and revenue growth.

On August 23, 2007, the Company announced, among other things, its preliminary fiscal 2007 second quarter financial results, the Company’s revised earnings guidance and an update regarding its license agreement with the Walt Disney Company. Specifically, the Company revealed that it will no longer have an exclusive license agreement with Disney and that certain executives violated Company policies and procedures with regard to the Company's stock option granting process. In response to this announcement, shares of the Company’s common stock fell $5.59 per share, or 17%, to close at $27.43 per share, on heavy trading volume.

On December 17, 2007, the Court issued an Order consolidating cases and appointing Lead Plaintiff and Counsel. Lead Plaintiff filed a consolidated amended Complaint on February 28, 2008. Defendants filed a Motion to Dismiss the consolidated amended Complaint on March 28. On July 18, the Court issued an Order denying Defendants' Motion to Dismiss.

On July 17, 2009, the Court issued an Order granting preliminary approval of the Settlement. On November 9, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

The Court issued an Order permitting Distribution of the Settlement's residual balance on October 12, 2012.