A $30 million settlement reached in this long-running securities class action against Celestica, a Canadian electronics company
On July 28, 2015 the Honorable George B. Daniels granted final approval to a settlement of $30 million.
Class representatives allege that Celestica disseminated a series of materially false and misleading statements during the period between January 27, 2005 and January 30, 2007 concerning its earnings, profitability, and financial outlook, which inflated the company's reported earnings. It is alleged that the 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 percent, wiping out more than $1.3 billion in market capitalization.
On October 14, 2010, the court granted the defendants' motions to dismiss. Labaton Keller Sucharow successfully appealed this ruling in the Second Circuit on December 29, 2011, which reversed the court's dismissal.
On August 20, 2014, the court granted the plaintiffs' motion for class certification with respect to a class of all persons who purchased or acquired Celestica common stock on a United States stock exchange during the period between January 27, 2005 and January 30, 2007, inclusive, appointed class representatives, and appointed Labaton Keller Sucharow as counsel for the class. A significant win for the class, the court also granted the plaintiffs' motion for summary judgment in part, specifically on the issue of class-wide reliance. The court denied the defendants' motion for summary judgment in its entirety.
The case is In re Celestica Inc. Securities Litigation, No. 07-cv-00312 (S.D.N.Y.). New Orleans Employees' Retirement System and Drywall Acoustic Lathing and Insulation Local 675 Pension Fund are court-appointed representatives of the certified class. Labaton Keller Sucharow is lead counsel for the class representatives and counsel for the class. The defendants are Celestica Inc. and certain of the company's former officers.
Submit Proof of Claim
If you purchased or acquired Celestica common stock on a United States stock exchange during the period between January 27, 2005 and January 30, 2007, inclusive, you may be eligible to recover from the settlement if you submit a Proof of Claim with supporting documentation by September 17, 2015.
Settlement Hearing
A settlement hearing was held on July 28, 2015 before Judge Daniels in courtroom 11A at the Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, NY, NY 10007. The deadline for objecting to the settlement or for seeking exclusion from the class has passed.
A copy of relevant documents can be accessed by clicking on the links to the right.
If you have questions about the settlement, please contact Labaton Keller Sucharow at settlementquestions@labaton.com or 1-888-219-6877, or the Claims Administrator, GCG, at 1-888-345-0866.
