The big news from late last week was the jury verdict for the plaintiffs in the Household International securities class action. Originally filed in 2002, the complaint alleged that Household engaged in a “massive predatory lending scheme” that led to a $600 million financial restatement. The jury found that the defendants acted at least recklessly as to 16 different statements made to the market, causing Household’s stock price to be artificially inflated. The trial will now move on to the damages phase.
As just the seventh securities class action based on conduct that took place after Dec. 1995 (i.e., after the passage of the PSLRA) to go to a trial verdict, the Household case is getting a lot of attention. Here are some links:
Press: Chicago Tribune (May 8, 2009); Chicago Daily Herald (May 8, 2009)
Blogs: The D&O Diary; AmLaw Litigation Daily; (including a helpful analysis of the jury verdict form).
The 10b-5 Daily 