SMART Technologies Inc (NASDAQ; SMT) Investor Securities Class Action Lawsuit 12/03/2010

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Company Name(s): 
SMART Technologies
Case Name: 
SMART Technologies Shareholder Class Action 12/03/2010
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: SMT
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/03/2010
Class Period Begin: 
07/14/2010
Class Period End: 
05/18/2011
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
02/01/2011
Date Settled: 
09/17/2013
Settlement Amount: 
$15,250,000
Deadline to Participate in Settlement: 
10/04/2013
Summary: 

Septebmer 17, 2013 - The court approved the settlement, entered the orders approving the plan of allocation and the motion for attorneys’ fees and expenses.

May 23, 2013 - The settlement was preliminarily approved.

April 30, 2013 - Parties filed a stipulation of settlement.

August 21, 2012 - The court issued an order denying the defendants' motion to dismiss the case.

May 11, 2012 - Defendants filed a motion to dismiss.

April 24, 2012 - The lead plaintiff filed a corrected second amended complaint.

April 23, 2012 - The lead plaintiff filed a second amended complaint.

April 3, 2012 - The court granted in part and denied in part the defendants' motion to dismiss.

January 6, 2012 - Defendants filed a motion to dismiss.

November 4, 2011 - The lead plaintiff filed an amended complaint.

October 14, 2011 - The judge granted the motion to transfer the case from U.S. District Court in Illinois to the U.S. District Court for the Southern District of New York.

August 22, 2011 - The court granted to dismiss certain underwriters from the lawsuit without prejudice.

August 19, 2011 - The lead plaintiff filed a motion to voluntarily dismiss certain underwriters.

June 16, 2011 - Lead plaintiff and lead counsel were appointed.

February 4, 2011 - The plaintiff of the first filed complaint voluntarily dismissed the lawsuit without prejudice.

February 1, 2011 - Lead plaintiff motions were filed.

January 26, 2011 - Another investor filed a new lawsuit with similar allegations against Smart Technologies Inc.

December 3, 2010 - An investor in shares of SMART Technologies Inc (NASDAQ: SMT) filed a lawsuit in the U.S. District Court for the Southern District of New York against SMART Technologies Inc over alleged violations of Federal Securities Laws.

According to the complaint the plaintiff alleges that SMART Technologies Inc, its entire Board of Directors, its Chief Financial Officer, and certain Underwriters involved in the July 2010 Initial Public Offering of 38.83 million shares of common stock, that closed on July 20, 2010, included or allowed the inclusion of materially false and misleading statements in the Registration Statement and Prospectus issued in connection with its July 2010 Initial Public Offering in direct violation of the Securities Act of 1933. Specifically, the complaint alleges that defendants each failed to conduct an adequate due diligence investigation into SMART Technologies Inc prior to the July 2010 IPO, and they also each failed to reveal, at the time the July 2010 IPO closed – which occurred almost one third of the way through the fiscal second quarter of 2011, the period ended September 30, 2010 – that SMART Technologies Inc was not proceeding according to plan and that SMART Technologies Inc's sales already had been adversely impacted by a slowdown during fiscal 2Q:11 which would make it impossible for SMART Technologies to achieve its projected rates of growth, earnings, revenues, and profits. Shares of SMART Technologies Inc (NASDAQ: SMT) traded in July over $16 and decreased throughout August to $10.50 per share in September. SMT shares were able to regain some value and traded in October as high as $14.67 per share.

Then on November 10, 2010, Smart Technologies Inc reported its second quarter financial result for the period ended September 30, 2010. For the quarter, the Company reported three months revenue of $222.7 million and adjusted profits of $0.33 per share, missing analysts expectations for revenue of $233.8 million and profits of $0.24 per share after adjustments. Smart Technologies Inc stated as follows: “While the company continues to execute at a high level, we have seen slower than anticipated sales in our recently acquired NextWindow business and are factoring in a more conservative growth assumption for the North American market in the second half of our fiscal year.”

On November 10, 2010, Smart Technologies Inc’s common stock (SMT) decreased by $4.16 per share, or 32%, to close at $8.91 per share. The following trading day SMT shares closed at $8.70 per share. SMT shares closed on Friday Nov 12 at $8.42 per share.