R.H. Donnelley Corporation (OTC: RHDCQ) Investor Securities Class Action Lawsuit 10/23/2009

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Company Name(s): 
R.H. Donnelley Corporation
Case Name: 
R.H. Donnelley Corporation Shareholder Class Action Lawsuit 10/23/2009
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
OTC: RHDCQ
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
10/23/2009
Class Period Begin: 
10/26/2006
Class Period End: 
05/29/2009
Court of Filing: 
U.S. District Court for the District of Delaware
Deadline To File for Lead: 
12/22/2009
Date Settled: 
02/17/2012
Settlement Amount: 
$25,000,000
Deadline to Participate in Settlement: 
06/19/2012
Summary: 

June 22, 2012 - The court approved the settlement and dismissed the action with prejudice.

June 19, 2012 - The court held a final settlement hearing.

March 2, 2012 - The court preliminarily approved the settlement.

February 17, 2012 - Parties filed a stipulation of settlement.

June 14, 2011 - The court denied defendants' motion to dismiss.

November 10, 2010 - Defendants filed a motion to dismiss.

August 19, 2010 - The lead plaintiff filed an amended consolidated complaint on behalf of investors who purchased R.H. Donnelley Corporation (OTC: RHDCQ) common shares between October 26, 2006 and May 29, 2009. The plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between October 26, 2006 and May 29, 2009.

June 22, 2010 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

December 22, 2009 - Lead plaintiff motions were filed.

October 23, 2009 - An investor in shares of R.H. Donnelley Corporation (OTC: RHDCQ) filed a lawsuit in the U.S. District Court for the District of Delaware on behalf of purchasers of R.H. Donnelley Corporation (OTC: RHDCQ) publicly traded securities between July 26, 2007 and May 28, 2009, against certain R.H. Donnelley Corporation’s officers and/or directors.

According to the complaint the plaintiff alleges that R.H. Donnelley Corporation’s officers and/or directors violated the Securities Exchange Act of 1934 by issuing between July 26, 2007 and May 28, 2009 materially false and misleading statements regarding R.H. Donnelley Corporation’s business and financial results and that the defendants caused R.H. Donnelley Corporation to fail to properly account for its bad debt expense and timely write down its impaired goodwill. The plaintiff accuses that as a result of defendants’ false and misleading statements, R.H. Donnelley Corporation’s stock traded at artificially inflated prices during the time from July 26, 2007 and May 28, 2009, trading as high as $66.67 in July 2007 and beginning in February 2008, defendants began to acknowledge problems in R.H. Donnelley Corporation’s operations and with its financial results. On March 12, 2009, R.H. Donnelley Corporation announced that it had retained a financial advisor to assist in the evaluation of its capital structure, including various balance sheet restructuring alternatives. Then, on May 29, 2009, R.H. Donnelley Corporation filed for bankruptcy. The stock now trades at around six cents per share.

R.H. Donnelley Corporation, located in Cary, NC, is a Yellow Pages and online local commercial search company. R.H. Donnelley Corporation provides marketing solutions to its advertisers that generate ready-to-buy consumers for their local businesses. It provides local search solutions to consumers deliver relevant search results through a variety of print and online media platforms. Before filing for Chapter 11 bankruptcy R.H. Donnelley Corporation reported in 2007 Total Revenue of $2.6803billion with a Net Income of $46.86million and in 2008 Total Revenue of $2.61681billion with a Net Loss of $2.298.33billion. R.H. Donnelley Corporation had assets of $11.9 billion and debt of $12.4 billion as of Dec. 31, according to Chapter 11 documents filed in U.S. Bankruptcy Court in Wilmington, Delaware.