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Case Status:    SETTLED
On or around 06/30/2015 (Settlement preliminarily approval)

Filing Date: May 17, 2013

According to the law firm press release, Hot Topic is a mall- and Web-based specialty retailer of apparel, accessories, music and gift items for young men and women.

On March 7, 2013, Hot Topic and Sycamore Partners announced that they had entered into a merger agreement whereby Sycamore Partners would acquire all of Hot Topic's outstanding stock for $14.00 per share in cash (the "Proposed Acquisition"). The complaint alleges that defendants breached their fiduciary duties and/or aided and abetted such breaches in connection with the Proposed Acquisition by conducting a flawed sales process designed to deliver the Company to Sycamore Partners and provide material benefits to Company insiders. In an attempt to secure shareholder support for the unfair Proposed Acquisition, on April 24, 2013, Hot Topic issued a materially false and misleading Preliminary Proxy Statement Pursuant to §14(a) of the 1934 Act (the "Proxy"). The Proxy, which recommends that Hot Topic's shareholders vote in favor of the Proposed Acquisition, omits and/or misrepresents material information in contravention of §§14(a) and 20(a) of the 1934 Act regarding the unfair consideration offered in the Proposed Acquisition and the actual intrinsic value of the Company. The omitted information is material to the impending decision of Hot Topic shareholders whether or not to vote in favor of the Proposed Acquisition and/or whether to seek appraisal for their shares.

On July 29, 2013, the Court issued an Order consolidating the cases, but declined to appoint lead plaintiff and lead counsel.

On August 20, 2013, the Court appointed City of Livonia Employees' Retirement System as Lead Plaintiff for the class. Plaintiff filed a Consolidated Complaint on October 3, 2013, alleging the various causes of action.

On May 2, 2014, the Individual Defendants' Motion to Dismiss was GRANTED IN PART and DENIED IN PART, and the Sycamore Defendants' Motion to Dismiss was GRANTED. The Court dismissed without leave to amend the entirety of Plaintiff's Consolidated Complaint against the Sycamore Defendants, dismissed without leave to amend Count IV of Plaintiff's Consolidated Complaint against Hot Topic, and dismissed with leave to amend Count III of Plaintiff's Consolidated Complaint against the Individual Defendants. Plaintiff shall have until May 27, 2014, to file an amended complaint.

The parties entered into a Settlement Agreement on April 30, 2015. This Settlement was preliminarily approved by the Court on June 30.

COMPANY INFORMATION:

Sector:
Industry:
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: HOTT
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: C.D. California
DOCKET #: 13-CV-00787
JUDGE: Hon. Josephine Staton Tucker
DATE FILED: 05/17/2013
CLASS PERIOD START: 03/07/2013
CLASS PERIOD END: 05/17/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Deans & Lyons LLP
    325 N. Saint Paul Street, Suite 1500, Deans & Lyons LLP, TX
    214.736.7861 214.965.8505 ·
  2. Robbins Geller Rudman & Dowd LLP (San Diego)
    655 West Broadway, Suite 1900, Robbins Geller Rudman & Dowd LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
No Document Title Filing Date
COURT: C.D. California
DOCKET #: 13-CV-02939
JUDGE: Hon. Josephine Staton Tucker
DATE FILED: 10/04/2013
CLASS PERIOD START:
CLASS PERIOD END:
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Robbins Geller Rudman & Dowd LLP (San Diego)
    655 West Broadway, Suite 1900, Robbins Geller Rudman & Dowd LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
No Document Title Filing Date