Sports Industry News SampleSPORT-HALEY INC.: Asks CO Court To Dismiss Amended Securities Suit
Frederick, MARYLAND (SunStream News) -- Sport-Haley, Inc. asked the United States District Court for the District of Colorado to dismiss an amended consolidated securities class action filed against the Company and three of its officers and directors. The suit alleges that the defendants violated Section 10(b) of the Security Exchange Act, and Rule 10b-5 promulgated thereunder, by knowingly overstating the Company’s financial results, thereby causing the Company’s stock price to be artificially inflated. The complaint further alleges that the individual defendants are liable by virtue of being controlling persons of the Company, pursuant to Section 20(a) of the Exchange Act. The allegations arise out of the Company’s restatements of its financial statements for the fiscal years ended June 30, 1999 and 1998, which the Company previously reported. The defendants moved to dismiss the first amended complaint in February 2002. In April 2002, having been granted an extension of time, the plaintiffs filed an opposition to the defendants’ motion. The motion is currently pending before the court. The defendants believe that the action is without merit and intend to vigorously defend the lawsuit. Based upon information that is currently available, management is not able to estimate the amount of damages, if any, that might be awarded to the plaintiffs and the class, if the action is certified by the court as a class action, if the lawsuit were determined in favor of the plaintiffs.
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Source: Class Action Reporter
Publication Date: 2002-05-03
NWS: LAW
COY: SPOR
IND: SPT
GEO: n-us-co
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