According to a press release dated June 6, 2011, a class action complaint was filed against The Timberland Company and certain of the Company's officers for violations of the Securities Exchange Act of 1934.
Specifically, the complaint filed in the action charges that, during the Class Period, the Company disseminated bullish statements about then-present sales trends, cost discipline and inventory levels and an anticipated return to a 15% operating profit, and that, as a result of these representations, Timberland share prices traded at artificially inflated prices. However, the complaint alleges, in making the positive Class Period statements, Timberland and certain of its officers and directors concealed that demand for the Company's key products had actually dramatically declined, that the Company's inventory levels were rising and that Timberland had significantly increased the Company's advertising spending in order to buttress sagging sales demand, which would decrease operating income.
On May 5, 2011, Timberland disclosed the financial results for the Company's first quarter 2011 that far underperformed that which Timberland had led the market to expect during the Class Period. As a result of this revelation, prices of the Company's common stock declined precipitously.
On June 6, 2011, the plaintiffs re-filed a corrected complaint. The corrected complaint addressed formatting issues only.
On June 23, 2011, the parties filed a stipulation attempting to relate and consolidate any future actions filed in the District of New Hampshire or elsewhere under the current docket. The Court responded on June 24, 2011, with an order refusing to approve the stipulation based on a finding that the stipulation was overly broad as drafted.
According to the Order signed by Judge Steven J. McAuliffe on November 10, 2011, the City of Omaha Police and Fire Retirement System is appointed as Lead Plaintiff, and Lead Plaintiff’s selection of Lead Counsel and Liaison Counsel for the Class is also approved. The law firm of Scott+Scott is appointed as Plaintiff’s Lead Counsel and Shaheen & Gordon as Plaintiff’s Liaison Counsel.
On January 4, 2012, the lead plaintiff filed an Amended Complaint. The complaint names additional individuals as defendants in the action.
On March 28, 2013, the Court issued an Order granting the defendants' motion to dismiss. The plaintiffs were given leave to file an amended complaint within 30 days.
On April 24, 2013, the parties entered into a Stipulation whereby this action is to be dismissed with prejudice.