In re Celestica Inc. Securities Litigation
Status: Ongoing Case
Labaton Sucharow is the Court-appointed lead counsel for lead plaintiffs New Orleans Employees' Retirement System, Millwright Regional Council of Ontario Pension Trust Fund, Drywall Acoustic Lathing and Insulation Local 675 Pension Fund, and Carpenters' Local 27 Benefit Trust Funds in In re Celestica Inc. Securities Litigation, No. 07-CV-00312-GBD.
Lead plaintiffs filed a Consolidated Class Action Complaint alleging that Celestica Inc. and certain of its senior officers and directors committed securities fraud. The Consolidated Complaint alleges that Celestica disseminated a series of materially false and misleading statements during the period between January 27, 2005 and January 30, 2007 concerning Celestica's earnings, profitability, and financial outlook, thereby inflating the company's reported earnings. Defendants achieved these fraudulent results through various machinations, including: (i) manipulation of Celestica's inventory, resulting in overstated earnings; (ii) understating operating expenses through the manipulation of Celestica's books; (iii) overstating revenues by booking phony sales; and (iv) understating the true cost of an announced restructuring by as much as 68 percent. As defendants revealed the truth to the market, Celestica's share price plummeted from $11.74 per share to $5.96 per share, or nearly 50%, wiping out more than $1.3 billion in market capitalization.
On October 14, 2010, the Honorable George B. Daniels entered an order granting defendants' motions to dismiss. On December 29, 2011, the Second Circuit entered a Summary Order reversing and remanding the Court's dismissal in its entirety. Lead Plaintiffs anticipate that fact discovery will commence in the first quarter of 2012.