Securities Litigation: Helen of Troy

In re Helen of Troy Securities Litigation
USDC WD Texas
Guidance

Background

Company background

Litigation background

In re Helen of Troy Securities Litigation
USDC WD Texas (El Paso) 3:05-cv-00431-HLH
Judge Harry Lee Hudspeth
Filed 11.15.05

Lead plaintiffs

Coral Springs Police Pension Fund
Selli Khezrie
E and J Lawrence Corp
Dennis Angleton

SEC disclosure

Second quarter sales and earnings were less than we had expected. Challenging and difficult economic conditions in our market place have prevailed over the past few quarters.

Press release 10.11.05

Form 10-Q 7.09.08 At page 47
Securities class action litigation An agreement has been reached to settle the consolidated class action lawsuits filed on behalf of purchasers of publicly traded securities of the Company against the Company, Gerald J. Rubin, the Companys Chairman of the Board, President and Chief Executive Officer, and Thomas J. Benson, the Companys Chief Financial Officer. In the consolidated action, the plaintiffs alleged violations of Sections 10(b) and 20(a) of the Exchange Act of 1934, as amended (the Exchange Act), and Rule 10b-5 thereunder. The class period stated in the complaint was October 12, 2004 through October 10, 2005. The lawsuit was brought in the United States District Court for the Western District of Texas.

On June 19, 2008, the Court held a hearing at which it approved the terms of the settlement, the certification of the class for purposes of the settlement, and the award of attorneys fees and costs related to the lawsuit. The order approving the settlement will become final thirty days after June 19, 2008. Under the settlement, the lawsuit has been dismissed with prejudice in exchange for a cash payment of $4.5 million. The Companys insurance carrier will pay the settlement amount and the Companys remaining legal and related fees associated with defending the lawsuit because the Company has met its self-insured retention obligation. The Company and the two officers of the Company named in the lawsuit continue to deny any and all allegations of wrongdoing and will receive a full release of all claims.

Claims

Complaint