Great Atlantic & Pacific Tea Company (The) (PINK: GAPTQ) Investor Securities Class Action Lawsuit 09/09/2011

If you purchased shares of Great Atlantic and Pacific Tea Co Inc (The) (PINK: GAPTQ), you might have certain options and should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
The Great Atlantic & Pacific Tea Company
Case Name: 
The Great Atlantic & Pacific Tea Company Shareholder Class Action 09/09/2011
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
PINK: GAPTQ
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
09/09/2011
Class Period Begin: 
07/23/2009
Class Period End: 
12/10/2010
Court of Filing: 
U.S. District Court for the District of New Jersey
Deadline To File for Lead: 
11/08/2011
Date Settled: 
08/13/2014
Settlement Amount: 
$9,000,000
Deadline to Participate in Settlement: 
12/02/2014
Summary: 

January 5, 2015 - The court approved the settlement and entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissing the action with prejudice.

August 13, 2014 - The court preliminarily approved the settlement.

May 8, 2014 - Parties filed a stipulation of settlement.

April 30, 2013 - The court granted one motion to dismiss and in part granted and in part denied the other motion to dismiss.

June 22, 2012 - Defendants filed motions to dismiss.

March 16, 2012 - The lead plaintiffs filed an amended complaint.

December 8, 2011 - Lead plaintiffs and lead counsel were appointed.

November 8, 2011 - Lead plaintiff motion was filed.

September 9, 2011 - An investor in shares of Great Atlantic and Pacific Tea Co Inc (The) (PINK: GAPTQ now trading on the NYSE sheets as GAP) filed a lawsuit in the U.S. District Court for the District of New Jersey against certain former and current executives over alleged Violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between July 23, 2009 and December 10, 2010.

According to the complaint the plaintiff alleges on behalf of purchasers of the securities of Great Atlantic and Pacific Tea Co Inc, better known as A&P, during the period between July 23, 2009 and December 10, 2010, that certain of the Great Atlantic and Pacific Tea Co Inc's former and current executives violated the Securities Exchange Act of 1934 by failing to disclose material adverse facts about the Company's true financial condition, business and prospects.

Even though Great Atlantic and Pacific Tea Co Inc’s 53 week Total Revenue rose from $6.4 billion reported for the past 52 weeks on February 23, 2008 to $9.51 billion for the past 53 weeks reported on February 28, 2009, its Total Revenue then declined for a 52 week period reported on February 27, 2010 to $8.81 billion and in $8.07 billion reported on February 26, 2011. Additionally its Net Income fell over the same time frame from a Net Income of $86.58 million to a Net Loss of $598.58 million.

The plaintiff alleges that on July 23, 2010, Great Atlantic and Pacific Tea Co Inc issued a press release announcing its fiscal 2010 first quarter results and that Great Atlantic and Pacific Tea Co Inc had launched a "turnaround," designed to strengthen its operating and financial foundation. On August 13, 2010, Great Atlantic and Pacific Tea Co Inc announced the closing of certain stores as part of its operational and revenue-driven turnaround initiative, the purported Turnaround Strategy, designed to generate sustained profitability and cash flow, drive sales growth, restore competitive margins to the business and strengthen the foundation of Great Atlantic and Pacific Tea Co Inc for the long term.

Then on December 10, 2010, it was announced that due to competition, and a weak economy, Great Atlantic and Pacific Tea Co Inc was filing for Chapter 11 bankruptcy.

Before the bankruptcy announcement Great Atlantic and Pacific Tea Co Inc (NYSE: GAP) stocks traded between July 23, 2009 and December 10, 2010 as high as $13 per Great Atlantic and Pacific Tea Co Inc (NYSE: GAP) shares. However, since its Chapter 11 announcement shares of Great Atlantic and Pacific Tea Co Inc traded under OTC: GAPTQ recently at $0.154 per share.