Idearc Inc. publishes directories such as yellow pages and white pages.

According to the Complaint, the Company, by selling to non-credit-worthy customers, effectively reported tens of millions of dollars of sales that it otherwise would not have reported while accumulating tens of millions of dollars of uncollectible receivables. The Company carried these uncollectible receivables on its books as though they were collectible until mid-2008, when the Company admitted to a "relaxation of certain aspects of the Company's credit policy in mid-2007" and began to write off these uncollectible receivables in a piecemeal fashion over several quarters.

Defendant’s remarks were materially false and misleading because one of the Defendants failed to disclose the change in the Company's credit policies that were effected in order to enable the Company to report additional revenue, and the resultant adverse ramifications (decreased earnings and liquidity) that the change in the Company's credit policies had on the Company's reported earnings for the three months ended March 31, 2008, and would continue to have on subsequent periods.

On July 1, 2009, an order consolidating cases was granted by the Court in this action. On September 30, 2009, another order was entered consolidating the cases under a single docket number. On November 09, 2009, a Memorandum Opinion and Order was entered into the Court’s record appointing lead Plaintiff and lead Counsel in this action. On February 11, 2010, the lead Plaintiff filed a Consolidated Class Action Complaint for Violations of the Federal Securities Laws.

On May 19, 2011, the Court issued an order granting the lead Plaintiff's motion to certify the class. According to the Court, the class includes claimants who purchased the Defendant's securities during the period from August 9, 2007 through and including October 30, 2008, and who were damaged by Defendants’ alleged violations of sections 10(b) and/or 20(a) of the Securities Exchange Act of 1934. The case moved to the discovery phase.

On February 20, 2013, the Court issued an Order denying Defendants' Motion for Summary Judgment.

On June 7, 2013, the Parties entered into a Settlement Agreement. This Settlement was preliminarily approved by the Court on June 28. On August 14, 2013, the Court issued an Amended Order preliminarily approving the Settlement. On November 13th, the Court issued an Order awarding attorneys' fees and expenses. This was followed by a Final Judgment and Order approving the Settlement.