Corporate Resource Services Inc (NASDAQ: CRRS) Investor Securities Class Action Lawsuit 03/02/2015

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Company Name(s): 
Corporate Resource Services
Case Name: 
Corporate Resource Services Shareholder Class Action Lawsuit 03/02/2015
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NASDAQ: CRRS
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/02/2015
Class Period Begin: 
04/26/2012
Class Period End: 
03/20/2015
Court of Filing: 
U.S. District Court for the Eastern District of New York
Deadline To File for Lead: 
05/01/2015
Date Settled: 
07/11/2017
Settlement Amount: 
$1,650,000
Deadline to Participate in Settlement: 
12/02/2017
Summary: 

July 11, 2017 - The court preliminarily approved the settlement.

May 31, 2017 - Parties filed a stipulation of settlement.

July 5, 2016 - The court granted in part and denied in part defendants' motion to dismiss.

August 14, 2015 - The lead plaintiffs filed an amended complaint on behalf of investors who purchased Corporate Resource Services Inc (NASDAQ: CRRS) common shares between April 26, 2012 and March 20, 2015. The lead plaintiffs allege that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between April 26, 2012 and March 20, 2015.

May 29, 2015 - Lead plaintiffs and lead counsel were appointed.

May 22, 2015 - The case was transferred to the U.S. District Court for the Southern District of New York.

May 1, 2015 - Lead plaintiff motions were filed.

March 2, 2015 - An investor in shares of Corporate Resource Services Inc (NASDAQ: CRRS) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Corporate Resource Services Inc in connection with certain allegedly false and misleading statements made between July 1, 2014 and February 6, 2015.

According to the complaint the plaintiff alleges on behalf of purchasers of Corporate Resource Services Inc (NASDAQ: CRRS) common shares between July 1, 2014 and February 6, 2015, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that Corporate Resource Services Inc issued allegedly materially false and misleading statements to investors by failing to disclose that its co-employer, Tri-State Employment Services, Inc., had a material unpaid federal payroll tax liability, which would adversely impact the Company and the Company was not in compliance with the Account Purchase Agreements with Wells Fargo as of November 30, 2014 and that when the truth was revealed to investors, the price of Corporate Resource Services Inc common stock dropped, damaging investors.

Corporate Resource Services Inc reported that its Total Revenue increased from $538.94 million for the 12 months period that ended on Sept. 30, 2011 to $819.67 million for the 12 months period that ended on January 3, 2014 and that its respective Net Income increased from $0.11 million to $278 million. Shares of Corporate Resource Services Inc (NASDAQ: CRRS) traded as high as $5.00 per share in September 2013. However, since then NASDAQ: CRRS shares lost significant value.

Through partial disclosures beginning in early February 2015, Corporate Resource Services Inc revealed that Corporate Resource Services Inc was in noncompliance with a funding agreement it has with Wells Fargo, that Corporate Resource Services Inc’s financial statements for 2014 could no longer be relied upon, that several members of Corporate Resource Services Inc’s audit committee resigned, and that an internal investigation required by the former audit committee members would not be funded. NASDAQ: CRRS shares declined to as low as $0.05 per share on February 23, 2015.