Arbitron Inc. Case 04/30/2008
May 17, 2012 (Update) -- Proposed $7,000,000 settlement. According to the Notice:
TERMS OF THE PROPOSED SETTLEMENT
The sum of Seven Million United States Dollars (USD $7,000,000.00) is being transferred to an interest-bearing escrow account under the control of the Escrow Agent. This principal amount of USD $7,000,000.00 in cash, plus any accrued interest thereafter, shall constitute the Settlement Fund. A portion of the settlement proceeds will be used for certain administrative expenses, including costs of printing and mailing this Notice, the cost of publishing a newspaper notice, payment of any taxes assessed against the Settlement Fund, and costs associated with the processing of claims submitted. In addition, as explained below, a portion of the Settlement Fund may be awarded by the Court to Lead Counsel as attorneys’ fees and for expenses incurred in litigating the case, and to the Lead Plaintiff for its expenses. The balance of the Settlement Fund (the “Net Settlement Fund”) will be distributed according to the Plan of Distribution described below to Class Members who submit valid and timely Proofs of Claim and Release.
PLAN OF DISTRIBUTION
The Net Settlement Fund will be distributed to Class Members who submit valid, timely Proofs of Claim and Release (“Authorized Claimants”) under the Plan of Distribution described below. The Plan of Distribution provides that you will be eligible to participate in the distribution of the Net Settlement Fund only if you have a net loss arising out of all transactions in Arbitron common stock during the Class Period.
For purposes of determining the amount an Authorized Claimant may recover under the Plan of Distribution, Lead Plaintiff’s counsel have consulted with their damage consultant. The Plan of Distribution reflects an assessment of the damages that could have been recovered as well as Lead Plaintiff’s counsel’s assessment of the likelihood of establishing liability for various periods of the Class.
To the extent there are sufficient funds in the Net Settlement Fund, each Authorized Claimant will receive an amount equal to the Authorized Claimant’s claim, as defined below. If, however, the amount in the Net Settlement Fund is not sufficient to permit payment of the total claim of each Authorized Claimant, then each Authorized Claimant shall be paid the percentage of the Net Settlement Fund that each Authorized Claimant’s claim bears to the total of the claims of all Authorized Claimants. Payment in this manner shall be deemed conclusive against all Authorized Claimants.
The total of all profits shall be subtracted from the total of all losses from transactions during the Class Period to determine if a Class Member has a claim. Only if a Class Member had a net loss, after all profits from transactions in Arbitron common stock during the Class Period are subtracted from all losses, will such Class Member be eligible to receive a distribution from the Net Settlement Fund.
April 30, 2008 -- According to a press release dated April 30, 2008, the complaint charges Arbitron and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company, through its subsidiaries, provides media and marketing information services in the United States and internationally. The Company’s Portable People Meter ratings service is purportedly capable of measuring radio, broadcast television, cable television, Internet broadcasts, satellite radio and television audiences, and retail store video and audio broadcasts.
Specifically, the complaint alleges that, during the Class Period, defendants issued materially false and misleading statements that misrepresented and failed to disclose: (i) that the Company’s scheduled implementation of its Portable People Meter ratings service in certain major markets was not performing according to internal expectations and the Company was experiencing significant difficulties such that it would have to delay its implementation; and (ii) as a result, defendants lacked a reasonable basis for their positive statements about the timing of the implementation of Arbitron’s Portable People Meter ratings service and the Company’s prospects and future earnings.
On November 26, 2007, Arbitron announced that “it [would] delay the commercialization of its Portable People Meter (PPM) radio ratings service in nine markets” and that the Company would be revising its financial guidance for 2007 and its outlook for 2008. In response to this announcement, the price of Arbitron common stock declined $7.21 per share, or over 14.74%, to close at $41.70 per share, on unusually high trading volume.