According to a press release dated April 30, 2008, the complaint charges Arbitron and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company, through its subsidiaries, provides media and marketing information services in the United States and internationally. The Company's Portable People Meter ratings service is purportedly capable of measuring radio, broadcast television, cable television, Internet broadcasts, satellite radio and television audiences, and retail store video and audio broadcasts.
Specifically, the complaint alleges that, during the Class Period, defendants issued materially false and misleading statements that misrepresented and failed to disclose: (i) that the Company's scheduled implementation of its Portable People Meter ratings service in certain major markets was not performing according to internal expectations and the Company was experiencing significant difficulties such that it would have to delay its implementation; and (ii) as a result, defendants lacked a reasonable basis for their positive statements about the timing of the implementation of Arbitron’s Portable People Meter ratings service and the Company's prospects and future earnings.
On November 26, 2007, Arbitron announced that "it [would] delay the commercialization of its Portable People Meter (PPM) radio ratings service in nine markets" and that the Company would be revising its financial guidance for 2007 and its outlook for 2008. In response to this announcement, the price of Arbitron common stock declined $7.21 per share, or over 14.74%, to close at $41.70 per share, on unusually high trading volume.
On July 23, 2008, a Stipulation And Order Appointing Lead Plaintiff And Approval Of Selection Of Lead Counsel was filed with the Court stating that Plumbers and Pipefitters Trust Fund shall be appointed Lead Plaintiff. The law firm of Coughliin Stoia Geller Rudman & Robbins L.L.P., shall be, appointed Lead Counsel.
On September 22, 2008, an Amended Class Action Complaint was filed by the plaintiffs against the defendants. The defendants filed various motions to dismiss on November 25, 2008, but the plaintiffs were granted their application to file an amended complaint. The motions to dismiss were denied as moot.
On October 19, 2009, a Second Amended Class Action Complaint was filed. The defendants filed several motions to dismiss on December 17, 2009.
On September 30, 2010, Defendant Creamer's motion to dismiss the plaintiffs' claims against him was granted (and the claims against Creamer are dismissed with prejudice). However, the motions to dismiss by Arbitron and Morris were denied.
On May 21, 2012, the Court issued an Order Preliminarily Approving Settlement and Providing for Notice.
On October 23, 2012, the Court issued an Order Approving Plan of Distribution of Settlement Proceeds and an Order Awarding Lead Counsel Attorneys Fees and Expenses. In addition, a Final Judgment and Order of Dismissal with Prejudice was entered into the Court's docket.