Case Page

 

Case Status:    DISMISSED    
On or around 01/31/2011 (Court's order of dismissal)

Filing Date: November 05, 2007

The original complaint charges Office Depot and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Office Depot is a global supplier of office products and services.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and financial results. As a result of defendants’ false statements, Office Depot stock traded at artificially inflated prices during the Class Period, reaching a high of $36.41 per share on June 4, 2007. Then on October 29, 2007, before the market opened, the Company announced that it had to delay the distribution of its third-quarter earnings release and related conference call and webcast, previously scheduled to take place on October 30, 2007, due to an independent review by the Audit Committee of the Company’s vendor program funds, relating principally to the timing of the recognition of certain vendor program funds.

On this news, Office Depot’s stock declined $2.86 per share to close at $17.43 per share, a one-day decline of nearly 14% on volume of 30 million shares, over five times the average three-month volume.

According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company failed to properly account for its vendor rebates; (b) the Company’s efforts to improve its gross margin by reducing its labor costs also led to a reduction in customer service levels resulting in a loss of customers; and (c) given the more intense competition the Company was experiencing from OfficeMax and Staples and the Company’s aggressive pricing to boost technology sales, the Company had no reasonable basis to make projections about its ability to maintain its gross margin. As a result, the Company’s projections issued during the Class Period for 2007 were at a minimum reckless.

On May 2, 2008, the Court adopted the report and recommendation to consolidate two related actions. On July 2, 2008, a Consolidated Amended Complaint was filed. On September 2, 2008, the defendants filed a motion to dismiss. On March 31, 2009, Judge Daniel T. K. Hurley granted the motion to dismiss with leave to file an amended complaint.

On April 20, 2009, the lead plaintiff filed a Second Consolidated Amended Complaint containing additional allegations. The defendants responded by filing a motion to dismiss on May 21, 2009, which was granted on January 14, 2010. The lead plaintiff filed a Notice of Appeal. On January 31, 2011, the Court entered the Mandate from the U.S. Court of Appeals affirming the judgment of the District Court.

COMPANY INFORMATION:

Sector: Consumer Non-Cyclical
Industry: Office Supplies
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ODP
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: S.D. Florida
DOCKET #: 07-CV-81038
JUDGE: Hon. Daniel T. K. Hurley
DATE FILED: 11/05/2007
CLASS PERIOD START: 04/26/2006
CLASS PERIOD END: 10/26/2007
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Saxena White PA (Boca Raton)
    2424 N. Federal Highway, Suite 257, Saxena White PA (Boca Raton), FL 33431
    561.394.3399 561.394.3399 ·
No Document Title Filing Date
COURT: S.D. Florida
DOCKET #: 07-CV-81038
JUDGE: Hon. Daniel T. K. Hurley
DATE FILED: 04/20/2009
CLASS PERIOD START: 10/17/2006
CLASS PERIOD END: 02/25/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley Bowman Carney & Williams, PLLC (Little Rock)
    11311 Arcade Drive, Suite 200, Cauley Bowman Carney & Williams, PLLC (Little Rock), AR 72212
    501.312.8500 501.312.8500 ·
No Document Title Filing Date
No Document Title Filing Date