According to a press release dated September 01, 2009, the complaint alleges that, throughout the Class Period, defendants made numerous positive statements regarding the Company's financial condition, business and prospects. The complaint further alleges that these statements were materially false and misleading because defendants failed to disclose the following adverse facts, among others: (i) that demand for Fleetwood’s manufactured houses and the big homes-on-wheels was rapidly declining, and was adversely affecting the Company’s liquidity; (ii) that the Company’s RV Group sales, especially in its travel trailer division, were declining because of softening consumer demand due to high gasoline prices and the credit crisis; (iii) that the Company’s financial condition was declining precipitously such that the Company was nearing insolvency and would have to file for bankruptcy protection; and (iv) based on the foregoing, defendants had no reasonable basis for their positive statements regarding the Company’s ability to control its deteriorating financial condition.
On March 10, 2009, Fleetwood issued a press release announcing that it had “filed voluntary Chapter 11 petitions for itself and certain operating subsidiaries in the U.S. Bankruptcy Court for the Central District of California.” The Company also announced that it was closing its travel trailer division. As a direct result of information disclosed at the end of the Class Period, the price of Fleetwood common stock fell precipitously, falling to $0.0103 per share on March 10, 2009.
On February 02, 2010, by order of the Court, Barry Donnell was appointed Lead Plaintiff and the law firm of Coughlin Stoia Geller Rudman & Robbins LLP was approved as Lead Counsel for the class. On April 19, 2010, a Consolidated Class Action Complaint was filed by the lead plaintiffs against the defendants. The defendants responded by filing a motion to dismiss the complaint on June 3, 2010. On March 31, 2011, the judge granted the defendants' motion to dismiss and the case was terminated.