According to a press release dated on July 25, 2008, TRM Corporation (Pink Sheets: TRMM) announced that the consolidated securities class action lawsuit filed against the Company and certain of its officers and directors has been dismissed. The complaints, filed in the United States District Court for the District of Oregon in May and June 2008, sought unspecified damages on alleged violations of federal securities laws between March 16, 2006 and May 22, 2007. The motion to dismiss was filed and granted on July 23, 2008 and the case is closed.
Another law firm press release stated that a class action has been commenced on behalf of all persons who purchased the common stock of TRM Corporation on May 22, 2008.
The Complaint charges that TRM and certain of its officers and directors violated federal securities laws by issuing materially false and misleading statements regarding the Company's financial health and performance. As alleged in the Complaint, these statements were materially false and misleading because defendants misrepresented and failed to disclose: (i) that the Company's financial results were artificially inflated due to the failure to timely write down certain assets, which were materially overvalued in the Company's financial statements; (ii) that TRM lacked adequate internal controls and procedures necessary to ascertain its true financial condition and worth; and (iii) as a result of the foregoing, the Company's ability to continue its operations and remain a going-concern was in serious doubt. At the end of the Class Period, TRM provided investors with details about the progress of its restructuring plan and announced new management positions. Following this disclosure, shares of the Company's stock declined dramatically.