BFTA Receives Court Approval of $30 Million Settlement In CelesticaJuly 28, 2015
On July 28, 2015, the Honorable George B. Daniels granted BFTA and lead counsel Labaton Sucharow LLP’s motion for preliminary approval of a $30 million settlement resolving class claims against Defendant Celestica, Inc., former CEO Stephen W. Delaney, and former CFO Anthony P. Puppi.
Plaintiffs alleged that Celestica disseminated a series of materially false and misleading statements during the period between January 27, 2005 and January 30, 2007 concerning a restructuring of Celestica’s operations, implicating Celestica’s earnings, profitability and financial outlook, which inflated the company's reported earnings.
Previously, the parties concluded fact and expert discovery, with Plaintiffs reviewing approximately one million pages of documents from the Defendants and deposing almost two dozen Celestica employees, directors and customers. Expert discovery included depositions of the Plaintiffs’ and the Defendants’ accounting and damages experts, as well as the Defendants’ industry expert.
On August 21, 2014, the court denied the Defendants’ motion for summary judgment in its entirety. The court further granted the Plaintiffs’ motion for summary judgment in part, specifically on the issue of class-wide reliance.
Plaintiffs had previously successfully appealed Judge Daniels’ dismissal of the Complaint. On December 29, 2011, the Second Circuit entered a Summary Order reversing and remanding the court's dismissal in its entirety.
The case is In re Celestica Inc. Securities Litigation, No. 07-CV-00312 (S.D.N.Y.). All inquiries in this matter should be directed to Labaton Sucharow LLP.