In re Carter's, Inc. Securities Litigation
We secured a $20 million recovery from Carter's and the Individual Defendants and a $3.3 million recovery from PwC.
Carter's Settlement: Granted Final Approval on June 1, 2012
PwC Settlement: Granted Final Approval on October 11, 2013
On June 1, 2012, the Honorable Amy Totenberg of the United States District Court for the Northern District of Georgia granted final approval to a settlement with Carter's, Inc. ("Carter's"), Frederick J. Rowan, II, Joseph Pacifico, Michael D. Casey, Andrew North, Charles E. Whetzel, Jr., and Joseph M. Elles in the amount of $20 million in cash, plus interest ("Carter's Settlement") in the class action In re Carter's, Inc. Sec. Litig., No. 1:08-CV-2940-AT. The deadlines in the Carter's Settlement to submit a Proof of Claim, object to the Carter's Settlement or seek exclusion from the Settlement Class have passed.
On October 11, 2013, Judge Totenberg granted final approval to a settlement with PricewaterhouseCoopers LLP ("PwC") in the amount of $3.3 million in cash, plus interest ("PwC Settlement"). The PwC Settlement resolves all the claims in the action.
Labaton Sucharow LLP is the court-appointed Lead Counsel for Lead Plaintiff Plymouth County Retirement System and the settlement class.
Lead Plaintiff alleges that Carter's and the Individual Defendants made material misstatements and omissions in connection with Carter's publicly-filed financials in violation of Sections 10(b), 20(a), and 20A of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 promulgated thereunder, which had the effect of artificially inflating the price of Carter's publicly traded securities. The alleged misstatements concerned the growth prospects of children's apparel manufacturer OshKosh B'Gosh, Inc., which was acquired by Carter's in July 2005, as well as an alleged "smoothing" of Carter's financial results by the manipulation of accommodation payments.
Lead Plaintiff alleges that PwC violated Section 10(b) of the Exchange Act by making alleged misstatements and omissions during the Class Period in its audit opinions on Carter's publicly filed consolidated year-end financial statements.The alleged misstatements concern the timing of Carter's recognized accommodations made to certain customers, which PwC allegedly failed to detect during its audits of Carter's consolidated year-end financial statements.
If you purchased the publicly traded securities of Carter's during the period from March 16, 2005 through November 10, 2009, inclusive, and were allegedly damaged thereby, you may be eligible to recover from the PwC Settlement if you submitted a Proof of Claim and Release Form with supporting documents by October 3, 2013. If you submitted a claim in connection with the Carter's Settlement on or before May 21, 2013, you do not need to submit a claim in connection with the PwC Settlement.
The deadline for objecting to the PwC Settlement or for seeking exclusion from the settlement class was September 17, 2013.
A copy of the relevant settlement documents can be accessed by clicking on the links to the right.
PwC - Brief in Support of Final Approval