In re Thomas & Betts Securities Litigation, 2:00cv2127 (W.D. Tenn.)
This securities class action charges Thomas & Betts Corporation ("T&B" or the "Company"); Clyde Moore ("Moore"), T&B's former President and Chief Executive Officer; and Fred Jones ("Jones"), T&B's former Vice President and Chief Financial Officer, with misleading investors. The action is pending in the U. S. District Court for the Western District of Tennessee on behalf of all persons and entities who purchased or otherwise acquired the common stock of T&B during the period April 28, 1999 through and including August 21, 2000 (the "Class Period").
The action alleges that the Defendants violated the federal securities laws by issuing a series of false and misleading statements concerning the Company's business and financial condition during the Class Period. In particular, the complaint alleges that the Company issued false financial statements for 1999 and the first quarter 2000 requiring a restatement of 1999 financial statements and the first quarter 2000 financial statements. Further, the complaint alleges that T&B recorded charges of $223.9 million during the second quarter of 2000 to increase reserves for accounts receivable, increase reserves for excess and obsolete inventory, reduce the carrying value of inventory, and to reverse revenue which should have been recorded as consignment sales. As a result of these revelations, the stock lost over 30% of its value.
On December 12, 2000 the Court issued an order consolidating all related cases into one class action lawsuit entitled In re Thomas & Betts Securities Litigation and appointed Lead Plaintiffs and Co-Lead Counsel. Berman DeValerio is serving as Co-Lead Counsel in the action. The operative complaint in this action is Lead Plaintiffs' Third Amended Consolidated Complaint (the "3rd Amended Complaint") filed on January 26, 2001. Defendants moved to dismiss this complaint on March 19, 2001 and both parties fully briefed the issues.
On July 31, 2001, Lead Plaintiffs brought an action against KPMG LLP ("KPMG"), T&B's outside auditor, for violations of the federal securities laws. This action alleges, among other things, that KPMG issued materially false and misleading statements regarding T&B's financial statement's compliance with Generally Accepted Accounting Principles and KPMG's compliance with Generally Accepted Accounting Standards during the Class Period. This action was brought as a related action to the action against T&B, Moore and Jones described above and, by order of the Court on August 14, 2001, was consolidated into In re Thomas & Betts Securities Litigation, C.A. No. 00-CV-2127, as a related action. On October 5, 2001, KPMG filed a Motion to Dismiss the complaint filed against it which, Lead Plaintiffs opposed on November 9, 2001.
On April 8, 2002, the Court granted in part and denied in part, Defendants T&B's, Moore's & Jones' Motion to Dismiss. KPMG's motion was granted and the case against it was dismissed with prejudice. On May 8, 2002, Defendants T&B, Jones and Moore filed their answers to the 3rd Amended Complaint.
1st Partial Settlement with T&B, Moore and Jones
Thereafter, Lead Plaintiffs and Defendants T&B, Moore and Jones, agreed to settle the claims against T&B, Moore & Jones. Prior to entering into a Stipulation of Settlement, Lead Plaintiffs' counsel conducted confirmatory discovery, including review and analysis of tens of thousands of pages of documents produced by T&B.
Pursuant to the terms of the proposed 1st partial settlement, a Settlement Fund in the amount of $46,500,000 in cash has been created for the benefit of the Class and will include interest that accrues on the fund prior to distribution. A hearing, to determine whether the proposed 1st partial settlement is fair, reasonable and adequate, was held December 20, 2002. That same day Judge Julia S. Gibbons granted Final Approval of the 1st partial settlement and awarded Plaintiffs' Counsel attorneys' fees and reimbursement of expenses.
In order to participate in the distribution of the 1st partial settlement, you must have sent a completed and signed Proof of Claim Form to the Claims Administrator's Office, Gilardi & Co., post-marked no later than January 20, 2003. The Claims Administrator has completed processing the claim forms on file with their office. If you filed a claim form with the Claims Administrator and have questions regarding your claim, please contact Gilardi & Co. at 800-447-7657.
On December 30, 2003, a motion for an order for distribution of the funds was filed with the Court. The Court issued an order granting distribution of the Settlement Fund on May 4, 2004. The claims administrator distributed the Settlement Fund for the 1st Partial Settlement on June 18, 2004 to those shareholders who filed a valid proof of claim.
2nd Partial Settlement with KPMG
On May 7, 2002, Lead Plaintiffs filed a Notice of Appeal with the Sixth Circuit Court of Appeals of the District Court's decision dismissing the case against KPMG. Briefing by both parties was completed by September 11, 2002. On July 14, 2003, the appeal was remanded back to the District Court for further proceedings.
Lead Plaintiffs and Defendant KPMG agreed to settle the action against KPMG and on March 4, 2004, filed a Stipulation and Agreement of Settlement, which was preliminarily approved by the Court on April 28, 2004. Pursuant to the Preliminary Approval Order, for purposes of this settlement with KPMG, the Court certified this action "as a class action on behalf of all persons and entities who purchased the common stock of T&B between March 23, 1999 and August 21, 2000." A hearing (the "Settlement Fairness Hearing") was held on August 4, 2004 to determine whether the proposed 2nd Partial Settlement with KPMG is fair, reasonable and adequate and Judge Bernice Donald granted Final Approval of this partial settlement with KPMG that same day.
Pursuant to the terms of the proposed 2nd Partial Settlement with KPMG, a Settlement Fund in the amount of $4,650,000 in cash, plus interest that accrues on the fund prior to distribution, has been established for the Class consisting of all persons and entities who purchased the common stock of T&B between March 23, 1999 and August 21, 2000.
In order to participate in the distribution of this 2nd Partial Settlement with KPMG, you must, (1) if you have NOT previously submitted an acceptable proof of claim in connection with the 1st Partial Settlement with T&B, Moore and Jones or (2) if you purchased T&B common stock between March 23, 1999 and April 27, 1999, inclusive (which purchases were not included in the 1st Partial Settlement's class definition), have sent a completed and signed Proof of Claim and Release form in connection with this settlement to the Claims Administrator's Office, post-marked no later than August 27, 2004, at the following address:
In re Thomas & Betts Securities Litigation
c/o Gilardi & Co., LLC
P.O. Box 5100
Larkspur, CA 94977-5100
Gilardi & Co., LLC
The Claims Administrator has completed processing the claim forms on file with their office. If you filed a claim form with the Claims Administrator and have questions regarding your claim, please contact Gilardi & Co.
On January 24, 2007 the Court approved distribution of the Net Settlement Fund. The Claims Administrator distributed the fund on March 29, 2007 to those shareholders who filed a valid claim.