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Cases

Xerox

Carlson v. Xerox Corp., 3:00-CV-01621 (D. Conn.)


The firm acted as co-Lead Counsel representing an institutional investor in this action, which resulted in a $750 million settlement with Xerox Corporation (Xerox" or "Company"), several of its top officers, and its auditor, KPMG (collectively, "Defendants").  At the time, the settlement ranked among the top ten settlements in the history of securities fraud litigation.

 

Plaintiffs' complaint alleged that Defendants engaged in a massive worldwide fraud that spanned five annual reporting periods.  Ultimately, Defendants caused the Company to report false financial results from February 17, 1999 through June 27, 2002 ("Class Period") by, among other things:

 

  • Improperly recognizing revenues from its global leasing operations by prematurely booking lease payments attributable to future supplies and services;
  • Boosting short-term results by overstating the value of future payments from leases originated in developing countries; and
  • Failing to write off mounting bad debts and improperly classifying transactions in its Mexico operations, resulting in $119 million in charges in Q2 and Q3 2000.

 

On March 27, 2008, the parties, through counsel, settled the action for $750 million on behalf of a Class of "all persons or entities that purchased Xerox common stock and /or bonds during the period from February 17, 1998 through June 27, 2002 inclusive, and whose transactions in Xerox common stock and /or bonds during the Class Period resulted in a loss."

 

The Settlement Fairness Hearing was held on October 7, 2008, and, on January 14, 2009, Judge Thompson issued an Opinion determining that the proposed settlement was fair, reasonable and adequate.

 

To participate in the distribution of the Settlement, investors had to submit a Proof of Claim and Release form ("Claim Form") to the Claims Administrator's Office, post marked no later than October 15, 2008, at the following address:

Carlson v. Xerox Corp. Securities Litigation

c/o Gilardi & Co. LLC

Claims Administrator

P.O. Box 808003

Petaluma, CA 94975-8003

(800) 708-4103

 

Xerox Settlement

 

The Claims Administrator processed the Claim Forms on file with its office and on December 18, 2009, distributed the settlement funds to those shareholders who filed a valid claim pursuant to the Court-approved Plan of Allocation.  If you filed a claim form and have questions regarding your claim, please contact the Claims Administrator.