According to a press release dated July 13, 2009, the Complaint alleges that the Company disseminated unreasonable highly positive guidance for the Company's financial performance for fiscal 2010, in order to close a $1 billion note offering in May 2009. Indeed, positive guidance on April 23 generated such interest in the Company it was able to offer $500 million in new notes and almost immediately increased the offering to $1 billion. On May 7, 2009, the Company announced the completion of its $1 billion note offering, which was needed to retire existing outstanding indebtedness of the Company which was shortly coming due.
Then, after the refinancing was complete, on June 24, 2009, the Company revealed that first quarter 2010 earnings would be substantially below expectations, and that the previous fiscal 2010 guidance would be updated in light of an unexpectedly poor first quarter. As a result, Supervalu shares dropped almost 12% on very heavy trading volume.
On October 1, 2009, Judge Denise L. Cote signed the Stipulation and Order for Transfer of Venue. According to the Order, this action originally could have been brought in the United States District Court for the District of Minnesota under 28 U.S.C. 1391(b)(2) or 15 U.S.C. 78aa. The parties agree that, for the convenience of the parties and in the interest of justice, this action shall be transferred, pursuant to 28 U.S.C. 1404(a), to the United States District Court for the District of Minnesota. On December 28, 2009, the defendants filed a motion to dismiss the Class Action Complaint.
According to the Order entered on January 14, 2010, based upon the Notice of Voluntary Dismissal Without Prejudice filed by the plaintiff on January 13, 2010 [Civil Docket No. 32], it is ordered that this action is dismissed without prejudice and without costs or disbursements to any party at this time.