According to the press release dated March 18, 2011, the Complaint alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) that the Company was improperly recognizing certain expenses; (2) that the Company lacked adequate internal and financial controls; and (3) that, as a result of the foregoing, the Company's financial results were materially false and misleading at all relevant times.
On March 11, 2011, the Company disclosed that it would be forced to delay the filing of its fiscal 2010 financial results and its Annual Report. According to the limited information provided by the Company regarding the delay, the Company requires additional time to complete its year-end financial statements due to the need to review the recognition of certain expenses in prior periods. On this news, the Company shares declined $5.27 per share, or more than 24%, to close at $16.63 per share.
On July 19, 2011, Judge Benson Everett Legg signed the order appointing lead plaintiff and lead counsel. According to the Order, Robert Walkoski and Howard Pavony are appointing lead plaintiffs for the class, and the law firm of Bernstein Liebhard LLP is appointed as lead counsel and Brower Piven as liaison counsel. An Amended Complaint was filed on September 19, 2011. On November 18, 2011, the defendants responded by filing a motion to dismiss for failure to state a claim.
On March 28, 2013, the Court issued an order granting the defendant's motion to dismiss with prejudice.