On August 25, 2004, Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court for the District of Minnesota on behalf of all persons who purchased the securities of Ceridian Corporation ('Ceridian' or the 'Company') [NYSE: CEN] between April 17, 2003 and July 19, 2004, inclusive (the 'Class Period'), against defendants Ceridian, Ronald L. Turner (the Company's President and Chief Executive Officer), and John R. Eickhoff (the Company's Chief Financial Officer). The case name and index number are Lear v. Ceridian Corp., et al., 04-cv-3895. Please click on the link at the bottom of the page to view a copy of the complaint filed in this action.
The Complaint alleges that defendants issued a series of false and misleading statements and failed to disclose other adverse facts to the investing public which had the effect of artificially inflating the price of the Company's stock. Specifically, the Complaint alleges that defendants statements were materially false and misleading when made because they failed to disclose or indicate the following: (i) that the Company improperly recognized $37 million in revenue in its Stored Value Systems ('SVS') unit; (ii) that the Company improperly accounted for the capitalization of upfront costs of its U.S. Human Resource Solutions business by capitalizing such costs rather than expensing them; (iii) that, because of the foregoing, the Company's financial results were in violation of Generally Accepted Accounting Principles ('GAAP'); (iv) that the Company lacked adequate internal controls; and (v) that as a result of the above, the Company's financial results were materially inflated at all relevant times. Defendants took advantage of the inflated share price by selling 216,298 shares of their individual Ceridian holdings for proceeds of $3.9 million. On July 19, 2004, Ceridian announced that it had postponed its second quarter earnings release and its related teleconference and Webcast with investors because of a recently initiated review of the capitalization and expensing of certain costs in its U.S. Human Resources Solutions business being conducted by members of the Audit Committee in conjunction with Deloitte & Touche LLP. This news shocked the market. Shares of Ceridian fell $2.13 per share, or 10.47 percent, on heavy trading to close at $18.21 per share on July 24, 2004.
Additional cases were filed on behalf of investors. On October 5, 2004, motions were made to consolidate the various cases and appoint lead plaintiff and counsel. On March 7, 2005, the court granted motion to consolidate cases under the number 04-3704. On June 27, 2005, a consolidated complaint was filed and on August 26, 2005, a motion to dimiss was filed by defendants. The motion to dismiss was granted on May 25, 2006. Plaintiffs filed their first amended complaint on July 14, 2006 and plaintiffs moved to dismiss on July 28, 2006. On June 5, 2007, the motion to dismiss the first amended complaint was granted. Plaintiffs appealed this decision to the 8th Circuit. The case was transferred to the Court of Appeals on July 23, 2007 and given the index number 07-2707.
Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country. The firm has approximately 60 attorneys in various practice areas and offices in Chicago, New York City and San Diego. The reputation and expertise of this firm in shareholder and other class litigation have been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.
If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, or by telephone at (800) 575-0735 (Fred Taylor Isquith, Esq., George Peters, Esq., or Derek Behnke).