The United States District Court for the District of Colorado dismissed a shareholder law suit against Crocs, Inc. last week in a ruling that marked an end to a difficult chapter for the company and its once high-flying stock.
The litigation started in November 2007 when various plaintiffs filed federal securities class action claims against the company and some of its current and former officers and directors after its stock price plummeted from $68 to about $30 in a matter of two weeks.
CROX shares went on to bottom out below $2 a share in November 2008, but has since rebounded to the $18 level. Last week Crocs reported it earned profits in all four quarters of 2010, when net income reached $67.7 million on sales of $789.7 million. That compared to a net loss of $185 million on sales of $721.6 million in 2008.
Last week’s court order dismissed all claims in Civil Action No. 07-cv-02351-PAB and ends the consolidated class action litigation that had been pending in the federal court. Among other things, the lawsuits alleged Crocs statements about its financial prospects were lacking.
“We are gratified that the Court granted our motion to dismiss in its thorough opinion,” said Daniel Hart, Crocs' executive vice president, chief legal & administrative officer. “Crocs is moving forward with a focus on our business.”
