Case Page

 

Case Status:    DISMISSED    
On or around 05/16/2013 (Other)

Filing Date: November 03, 2010

According to a press release dated November 03, 2010, the Complaint charges St. Joe, certain of its officers and directors, its underwriter and auditors with violations of the Securities Act of 1933 and Securities Exchange Act of 1934. St. Joe is one of the largest real estate development companies in Florida and is engaged in town and resort development, commercial and industrial development and rural land sales. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) as the Florida real estate market was in decline, St. Joe was failing to take adequate and required impairments and accounting write-downs on many of its Florida based property developments; (2) as a result, St. Joe's financial statements materially overvalued the Company's Florida based property developments; (3) the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (4) the Company lacked adequate internal and financial controls; and (5) as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.

On October 13, 2010, St. Joe's investors were shocked as Greenlight Capital's David Einhorn detailed at the Value Investing Congress how St. Joe needed to take "substantial impairments" and accounting writedowns on many of its properties, and that further building by the Company "will drive the stock price to zero." Mr. Einhorn's presentation, entitled "Field of Schemes: If You Build It, They Won't Come," noted that St. Joe's "development plans have fallen flat, leaving it with 'ghost towns' and inevitable writedowns." For example, Mr. Einhorn said he would "generously" place a value of $17.8 million on the remaining residential development at St. Joe's Windmark Beach property while the company is carrying the property at $164.5 million on its balance sheet. Mr. Einhorn also stated that the Company "was 'stuck' after making an aggressive bet on beachfront developments that have gone nowhere, and that it was overvaluing the real estate holdings on its books."

On this news, shares of the Company's stock fell $2.38 per share, or 9.7 percent, to close on October 13, 2010 at $22.16 per share, on unusually heavy trading volume. The following day the Company's shares declined an additional $2.42 per share, or 10.9 percent, to close on October 14, 2010 at $19.74 per share, again on heavy trading volume. Cumulatively, over these two days St. Joe's shares declined a total of $4.80 per share, or over 19.5 percent.

On January 11, 2011, pursuant to the Court's order of Consolidation, this case was consolidated onto docket number 10-cv-452. On January 25, 2011, the Court issued an Order appointing Lead Plaintiff and Lead Counsel.

On January 28, 2011, the Court Ordered, pursuant to Fla. N.D. Loc. 3.1(C), the venue for this case to be transferred from the Pensacola Division to the Panama City Division. All future pleadings and communications for the consolidated cases shall refer to Panama City Division and Case No. 5:11-CV-27. On February 24, 2011, a Consolidated Amended Class Action Complaint was filed.

The defendants filed a motion to dismiss for failure to state a claim on April 6, 2011. On August 24, 2011, Judge Richard Smoak signed the Order granting the motion to dismiss without prejudice. Plaintiff shall have twenty days, until 9/14/2011, in which to serve an Amended Consolidated Complaint. Failure to file an amended complaint shall result in dismissal with prejudice and the case being closed.

On January 12, 2012, the Court issued an Order granting the motion to dismiss with prejudice and dismissing the case.

On March 15, 2012, notice was filed with the Court that plaintiffs appealed to the United States Court of Appeals for the Eleventh Circuit from the Judgment entered in favor of the defendants on January 12, 2012. On February 25, 2013, the Court of Appeals issued their ruling affirming the decision of the District Court.

COMPANY INFORMATION:

Sector: Services
Industry: Real Estate Operations
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: JOE
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. Florida
DOCKET #: 10-CV-00452
JUDGE: Hon. RICHARD SMOAK
DATE FILED: 11/03/2010
CLASS PERIOD START: 02/19/2008
CLASS PERIOD END: 10/12/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barroway Topaz Kessler Meltzer & Check, LLP (Radnor)
    280 King of Prussia Road, Barroway Topaz Kessler Meltzer & Check, LLP (Radnor), PA 19087
    610.667.7706 610.667.7706 · info@btkmc.com
  2. Goldfarb Branham LLP
    2501 N. Harwood Street, Suite 1801, Goldfarb Branham LLP, TX 75201
    (214) 583 2233 (214) 583 2234 ·
  3. Kurkin Forehand Brandes LLP
    800 N. Calhoun Street, Suite 1-B, Kurkin Forehand Brandes LLP, FL 32303
    (850) 391-5060 (850) 391-2645 ·
No Document Title Filing Date
COURT: N.D. Florida
DOCKET #: 11-CV-00027
JUDGE: Hon. RICHARD SMOAK
DATE FILED: 02/24/2011
CLASS PERIOD START: 02/19/2008
CLASS PERIOD END: 10/12/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
  2. Robbins Geller Rudman & Dowd LLP (Boca Raton)
    120 East Palmetto Park Road, Suite 500, Robbins Geller Rudman & Dowd LLP (Boca Raton), FL 33432
    561.750.3000 561.750.3364 ·
No Document Title Filing Date
No Document Title Filing Date