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LeapFrog Enterprises, Inc.
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Case Status
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Settled disbursed
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Filing Date
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December 02, 2003
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Class Period
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July 24, 2003 to October 18, 2004
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Lead Plaintiff Deadline
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October 03, 2005
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Settlement Fund
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$2,300,000
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Deadline for Filing a Claim
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September 20, 2008
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Disbursement Date
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February 15, 2010
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Class Definition
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On behalf of all persons who purchased the Class A common stock or options of LeapFrog Enterprises, Inc. ("LeapFrog" or the "Company")
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Security ID(s)
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LEAPFROG ENTERPRISES INC (LF)
52186N106, OPTIONS
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Key Documents
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Click on the
icon to view the forms.
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Complaint
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Settlement Notice
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Claim Form
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download Acrobat reader
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Claims Administrator
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Garden City Group
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Settlement Hotline
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1-866-923-0882
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Claims Administrator Webpage
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www.gardencitygroup.com
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Objection Deadline
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July 03, 2008
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Exclusion Deadline
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July 03, 2008
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Tentative Settlement Date
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April 18, 2008
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Tentative Settlement Amount
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$2,300,000
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Final Settlement Date
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September 29, 2008
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Court
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USDC - California (Northern)
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Case No.
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03-5421
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Dismissal Date
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TBD
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Institutional Lead Plaintiff
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The Parnassus Fund, The Parnassus IncomeTrust/Equity Income Fund
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Individual Lead Plaintiff
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N/A
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Defendants
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LeapFrog Enterprises, Inc., Timothy M. Bender, James P. Curley, Thomas J. Kalinske, Michael C. Wood
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Settling Defendants
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LeapFrog Enterprises, Inc., Timothy M. Bender, James P. Curley, Thomas J. Kalinske, Michael C. Wood
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Case Summary
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The Complaint alleges as follows: Defendants misled investors by making numerous false and misleading statements about LeapFrog's current and future business results. In addition, the Defendants knew that LeapFrog was losing millions of dollars in sales and profits to Mattel's competing PowerTouch product. The Defendants downplayed the impact of the PowerTouch on sales of LeapFrog's products and falsely represented that the Company's sales and market share could actually increase. Defendants' false and misleading statements caused the price of LeapFrog stock to trade at artificially inflated prices and took advantage of the artificial inflation to sell millions of their own LeapFrog shares. After the close of the market on October 18, 2004, after repeatedly assuring investors that LeapFrog would report solid financial results in 3Q04 and 4Q04 and that the distribution and supply chain problems had been fixed, the Defendants announced that LeapFrog's 3Q04 results would be significantly worse than the guidance previously provided by the Defendants. In response, the price of LeapFrog's stock plummeted $6.21 causing class members to suffer actual economic losses.
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Settlement Summary
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Cash Settlement
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$2,300,000
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Non-Cash Settlement
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None
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Miscellaneous Settlement
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None
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LeapFrog Common Stock Purchases 1. For shares of Class A common stock purchased between July 24, 2003 and October 21, 2003: A. For shares retained at the end of trading on January 14, 2005, the Recognized Claim shall be the lesser of: (1) $27.65 per share; or(2) the difference between the purchase price per share and $13.27B. For shares sold between July 24, 2003 and October 21, 2003, the Recognized Claim shall be zero. C. For shares sold between October 22, 2003 and February 10, 2004, the Recognized Claim shall be the lesserof: (1) $11.65 per share; or(2) the difference between the purchase price per share and the sales price per share for each share sold.D. For shares sold between February 11, 2004 and March 10, 2004, the Recognized Claim shall be the lesser of: (1) $15.04 per share; or(2) the difference between the purchase price per share and the sales price per share for each share sold.E. For shares sold between March 11, 2004 and October 18, 2004, the Recognized Claim shall be the lesser of: (1) $21.44 per share; or(2) the difference between the purchase price per share and the sales price per share for each share sold.F. For shares sold between October 19, 2004 and January 14, 2005, the Recognized Claim shall be the lesser of: (1) $27.65 per share; or(2) the difference between the purchase price per share and the sales price per share for each share sold.2. For shares of Class A common stock purchased between October 22, 2003 and February 10, 2004: A. For shares retained at the end of trading on January 14, 2005, the Recognized Claim shall be the lesser of: (1) $16.00 per share; or(2) the difference between the purchase price per share and $13.27B. For shares sold between October 22, 2003 and February 10, 2004, the Recognized Claim shall be zero. C. For shares sold between February 11, 2004 and March 10, 2004, the Recognized Claim shall be the lesser of: (1) $3.39 per share; or(2) the difference between the purchase price per share and the sales price per share for each share sold.D. For shares sold between March 11, 2004 and October 18, 2004, the Recognized Claim shall be the lesser of: (1) $9.79 per share; or(2) the difference between the purchase price per share and the sales price per share for each share sold.E. For shares sold between October 19, 2004 and January 14, 2005, the Recognized Claim shall be the lesser of: (1) $16.00 per share; or(2) the difference between the purchase price per share and the sales price per share for each share sold.3. For shares of Class A common stock purchased between February 11, 2004 and March 10, 2004: A. For shares retained at the end of trading on January 14, 2005, the Recognized Claim shall be the lesser of: (1) $12.61 per share; or(2) the difference between the purchase price per share and $13.27.B. For shares sold between February 11, 2004 and March 10, 2004, the Recognized Claim shall be zero. C. For shares sold between March 11, 2004 and October 18, 2004, the Recognized Claim shall be the lesser of: (1) $6.40 per share; or(2) the difference between the purchase price per share and the sales price per share for each share sold.D. For shares sold between October 19, 2004 and January 14, 2005, the Recognized Claim shall be the lesser of: (1) $12.61 per share; or(2) the difference between the purchase price per share and the sales price per share for each share sold.4. For shares of Class A common stock purchased between March 11, 2004 and October 18, 2004: A. For shares retained at the end of trading on January 14, 2005, the Recognized Claim shall be the lesser of: (1) $6.21 per share; or(2) the difference between the purchase price per share and $13.27.B. For shares sold between March 11, 2004 and October 18, 2004, the Recognized Claim shall be zero. C. For shares sold between October 19, 2004 and January 14, 2005, the Recognized Claim shall be the lesser of: (1) $6.21 per share; or (2) the difference between the purchase price per share and the sales price per share for each share sold.
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Attorneys
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Plaintiffs
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Cohen Milstein Hausfeld & Toll
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Defendants
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Wilson Sonsini Goodrich & Rosati
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Legal Fees & Expenses
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Attorney's fees of $443,531.35 + reimbursement of expenses of $82,343.23
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Additional Information
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28703
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