Client Advisories and Bulletins
KMZ Wins Dismissal For Company That Restated 3½ Years Of Financials
October 12, 2001
When a company restates its financials, it can expect an onslaught of securities class action complaints. Nonetheless, on October 5, 2001, the Honorable Gary A. Fenner, United States District Court Judge for the Western District of Missouri, dismissed a consolidated amended complaint alleging violations of Section 10(b) of the Securities Exchange Act against Katten Muchin Zavis’ client, DT Industries, Inc. and certain of its former officers and directors. The complaint arose out of DT Industries’ allegedly “massive” restatement of prior financials over a 3½ year period, and it related to two different subsidiaries of the company. The court’s dismissal was entered in record time, a mere 18 days after briefing had concluded.