Case Page

 

Case Status:    DISMISSED    
On or around 09/19/2011 (Stipulation and order of dismissal (voluntary dismissal))

Filing Date: March 24, 2011

According to the Press Release dated March 30, 2011, Rosetta Stone and certain of its officers and directors violated federal securities laws. Specifically, the Complaint alleges: (i) that Rosetta Stone was facing intense competition for its products, including free competitive product offerings; (ii) that the free and lower priced competitive product offerings, not a temporary reduction in advertising, was having a
material adverse effect on the Company's Class Period revenues, particularly U.S. consumer revenues; (iii) that the favorable sales booking numbers Rosetta Stone reported during the Class Period was the result of key retail partners maintaining inventory of the Company's products well above historic levels; and (iv) that Rosetta
Stone's reported sales bookings and revenues during the Class Period
were the product of manipulation.

On February 28, Rosetta Stone announced fourth quarter revenue of
$74.3 million, a 5% decrease from the prior year, net income on a
GAAP basis of $5.0 million, a decrease of 60% from the 2009 fourth
quarter. On this news, shares of Rosetta Stone fell $1.77 to $13.19
per share.

On August 30, 2011, the plaintiff filed a Notice of Voluntary Dismissal with Prejudice. However, on September 7, 2011, District Judge Anthony J. Trenga issued the Order stating that this case remain on the active docket of the Court subject to the outstanding Scheduling Order; and Lead Plaintiff is directed, if it be so advised, to advise the Court of the terms of any settlement, together with a copy of any settlement agreement, as well as any other documents that would permit the Court to make the determinations referenced in this Order.

According to the Order signed by District Judge Anthony J. Trenga on September 19, 2011, the Motion for leave to voluntarily dismiss its claims, with prejudice, under Rule 41(a)(1) by Lead Plaintiff, Town of Davie Police Officers Retirement System is granted. The Court finds that there has been no abuse of the class action procedures, there will be no prejudice to potential class members, and the Retirement System has not violated its fiduciary duties to potential class members. The claims of the Retirement System are hereby dismissed with prejudice. The claims of potential class members are hereby dismissed without prejudice, as moot. Each side shall bear its own fees, costs, and expenses. Notice to the potential class members need not be given.

COMPANY INFORMATION:

Sector: Technology
Industry: Software & Programming
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: RST
Company Market: New York SE
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: E.D. Virginia
DOCKET #: 11-CV-00303
JUDGE: Hon. Anthony J Trenga
DATE FILED: 03/24/2011
CLASS PERIOD START: 02/25/2010
CLASS PERIOD END: 03/01/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Craig C. Reilly, Esq.
    111 Oronoco Street, Craig C. Reilly, Esq., VA 22314
    703.549.5354 703.549.5354 ·
  2. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date