Adams Golf ERISA Litigation
Keller Rohrback L.L.P. represents shareholders in the litigation against Adams Golf, Inc., and several of its officers and directors who allegedly violated federal securities laws. Shareholders asserted that the Registration Statement and the Prospectus associated with the Adams Golf initial public offering (“IPO”) in July 1998 failed to disclose material risks arising from the gray market distribution of Adams Golf products, which adversely affected Adams Golf’s earnings. Shareholders alleged that at the time of the IPO, the Company was faced with the real possibility of widespread discounting, but that documents given to investors were completely silent as to this important risk.
The case is pending in the United States District Court for the District of Delaware. On December 10, 2001, the Court granted defendants’ motion to dismiss. Plaintiffs appealed to the Third Circuit Court, which, on August 25, 2004, remanded the gray market issue back to the District Court for further proceedings consistent with the opinion. On October 12, 2004, Defendants answered the complaint. The Court signed a Scheduling Order and a Trial Management Order on November 29, 2004. On August 3, 2005, the Court entered an Order certifying a Class and Sub-Class.
The second consolidated and amended complaint was filed on January 24, 2006. On February 8, 2006, Adams Golf Defendants filed a motion to dismiss. On April 11, 2006, Judge Kent Jordan ruled, denying in part and granting in part, the motion to dismiss.
On September 11, 2006, defendants filed summary judgment motions, arguing that plaintiffs have failed to establish materiality, and that defendants have established negative loss causation. The Court denied these motions on May 26, 2009.
In October 2009, the parties entered into a Memorandum of Understanding that provided a $16 million settlement for the benefit of the class, plus additional distributions resulting from litigation against the Defendants’ former insurance broker and proceeds from bankruptcy proceedings.
On March 3, 2010, the Court granted preliminary approval of the Stipulation of Settlement and authorized plaintiffs’ counsel to retain Heffler, Radetich & Saitta, LLP to act as Claims Administrator for this case.
The Notice of Proposed Settlement of Class Action, Proof of Claim and Release forms were mailed to members of the class on March 18, 2010. As noted on page six of the Notice, the deadline to submit Proof of Claim forms to the Claims Administrator was July 3, 2010.
On June 17, 2010, the Court approved the Settlement, Plan of Allocation, and request for attorneys’ fees and costs. Disbursements to qualifying claimants who timely submitted Proof of Claim forms will be made by the Claims Administrator in this case.
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