Reddy Ice Holdings Inc (NYSE: FRZ) Investor Securities Class Action Lawsuit 08/08/2008

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Company Name(s): 
Reddy Ice Holdings
Case Name: 
Reddy Ice Holdings Inc Shareholder Class Action Lawsuit 08/08/2008
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Proposed
Affected Securities
NYSE: FRZ
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/08/2008
Class Period Begin: 
08/10/2005
Class Period End: 
09/15/2008
Court of Filing: 
U.S. District Court for the Eastern District of Michigan
Deadline To File for Lead: 
10/07/2008
Date Settled: 
05/18/2012
Settlement Amount: 
$1,000,000
Deadline to Participate in Settlement: 
07/18/2012
Summary: 

May 18, 2012 - The court held a final settlement hearing.

April 26, 2012 - Parties filed a stipulation of settlement.

April 18, 2012 - The court ordered the transfer of this case to the U.S. District Court for the Northern District of Texas.

April 12, 2012 - Reddy Ice Holdings Inc and Reddy Ice Corporation filed voluntary petitions in the Bankruptcy Court for the Northern District of Texas for relief under Chapter 11 of the Bankruptcy Code.

December 6, 2010 - The court granted in part and denied in part the defendants' motions to dismiss, granting the dismissal of all claims against an individual defendant and denying all other motions.

December 17, 2009 - The defendants filed motions to dismiss.

November 2, 2009 - The lead plaintiffs filed a consolidated complaint on behalf of investors who purchased Reddy Ice Holdings Inc (NYSE: FRZ) common shares between August 10, 2005 and September 15, 2008. The lead plaintiffs allege that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between August 10, 2005 and September 15, 2008.

July 27, 2009 - Interim lead plaintiffs and interim lead counsel were appointed.

July 17, 2009 - All cases were consolidated.

October 7, 2008 - Lead plaintiff motions were filed.

August 8, 2008 - An investor in shares of Reddy Ice Holdings Inc (NYSE: FRZ) filed a lawsuit in the U.S. District Court for the Eastern District of Michigan against Reddy Ice Holdings Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between August 10, 2005 and March 6 2008.

The complaint alleges that between August 10, 2005 and March 6, 2008, Reddy Ice Holdings Inc issued a series of materially false and misleading statements concerning Reddy Ice Holdings Inc’s financial performance and prospects. According to the complaint, from at least 2002 to the present, Reddy Ice Holdings Inc engaged in a continuing agreement, understanding and conspiracy in restraint of trade to artificially raise, fix, maintain or stabilize prices for packaged ice in the United States in violation of §1 of the Sherman Act, 15 U.S.C. §1. Moreover, Reddy Ice Holdings Inc divided up the packaged ice market so that they would not compete with other packaged ice makers, such as Arctic Glacier International, Inc. and Home City Ice Co. Specifically, the complaint alleges that Reddy Ice Holdings Inc failed to disclose that (a) Reddy Ice Holdings Inc was recognizing significant amounts of revenues derived from illegal activities in violation of the U.S. antitrust laws; and (b) as a result, Reddy Ice Holdings Inc’s financial statements were not a fair presentation of Reddy Ice Holdings Inc’s results and were presented in violation of U.S. Generally Accepted Accounting Principles and U.S. Securities and Exchange Commission rules.

On March 6, 2008, after the markets closed, Reddy Ice Holdings Inc issued a press release announcing that “federal officials executed a search warrant atReddy Ice Holdings Inc’s corporate office in Dallas on March 5, 2008.” Upon this news, on the next trading day, shares of Reddy Ice Holdings Inc’s stock (NYSE: FRZ) fell $7.73 per share, or 33%, to close at $15.38 per share, on heavy trading volume.

On April 12, 2012, Reddy Ice Holdings Inc and Reddy Ice Corporation filed voluntary petitions in the Bankruptcy Court for the Northern District of Texas for relief under Chapter 11 of the Bankruptcy Code.