According to the law firm press release, the lawsuit alleges CBD issued materially false financial statements during the Class Period. On October 24, 2014, CBD Energy announced that its previously issued audited financial statements for the fiscal years 2012 and 2013 and interim financial statements for the six months ended December 31, 2013 (the "December Statements") cannot be relied upon by investors. According to CBD Energy, certain related-party transactions involving its Executive Chairman and Managing Director were not accurately disclosed in its financial statements. The Company also disclosed that revisions to the December Statements are due to uncertainties about: (i) an expectation of realizing full (or any) value of a deposit of approximately $680,000; (ii) the adequacy of disclosures regarding goodwill and the possibility of recognizing an impairment; (iii) the capitalization of certain payments related to the costs of issuing retail bonds in the United Kingdom; and (iv) classification of certain expenses. On this news, shares of CBD Energy fell sharply on October 24, 2014, damaging investors.
On May 19, 2015, this case was transferred to the Southern District of Texas.
On June 29, 2015, the Court appointed lead plaintiff and approving lead counsel. Lead Plaintiff filed an amended complaint on August 13.
On July 6, 2016, the Court issued an Order granting the motion to dismiss of certain defendants and denying those of other defendants.
On April 14, 2017, the parties entered into a Stipulation of Settlement. This Settlement was preliminarily approved on April 20.