Computer and Electronics Industry News Sample

Jan 5, 2006 12:00:21

NAVARRE CORPORATION: Lead Plaintiff Motion Filed in MA Lawsuit

MASSACHUSETTS (SunStream News) -- Two groups filed lead plaintiff motions for the consolidated class action litigation against Navarre Corporation in the United States District Court for the District of Minnesota.

Three actions were initially commenced in June 2005. The allegations in each of these lawsuits are virtually identical, and essentially claim that the Company and certain of its officers and/or directors violated federal securities laws and regulations because the Company's financial results were materially inflated and not prepared in accordance with generally accepted accounting principles.

The complaints allege that these accounting irregularities benefited Company insiders including the individual defendants. The Complaints further allege that the Company failed to properly recognize executive deferred compensation and improperly recognized a deferred tax benefit as income. Plaintiffs allege violation of Sec. 10(b) of the Securities Exchange Act of 1934 and Rule 10(b)(5), promulgated under the Act, and as to the individual defendants only, violation of Sec. 20(a) of the Act. Plaintiffs seek certification of the actions as class actions, compensatory but unspecified damages allegedly sustained as a result of the alleged wrongdoing, plus costs, counsel fees and experts fees.

The actions are identified as follows:

(1) AVIVA Partners, Ltd. v. Navarre Corp., et al., case no. 05-1151 (PAM/RLE)

(2) Vivian Oh v. Navarre Corp., et al., case no. 05-01211 (MJD/JGL)

(3) Matthew Grabler v. Navarre Corp., et al., case no. 05- 1260 (DWF/JSM)

Defendants entered into a stipulation with counsel for plaintiffs in each of these cases to postpone the time for bringing a motion to dismiss until after a lead plaintiff and lead counsel are appointed by the Court, and an amended consolidated complaint is filed.

Two groups have filed motions to be named lead plaintiffs, but the Court has not scheduled a hearing on these competing motions. Once that decision is made, the lead plaintiff will have forty-five (45) days within which to serve a consolidated amended Complaint, after which motion practice to dismiss that Complaint will likely occur. During this period, no discovery will occur.

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Source: Class Action Reporter

Publication Date: 2006-01-05

 

COY:	CA

IND:	ECM
	STW

GEO:	n-us-ma

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