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Most employees, when they are being pushed out, face trouble times.
Of course, corporate executives are different than employees, and
sometimes when they are shown the door, they are given bags of
loot. This is true even if their performance has been mediocre at best.
The most recent example is the departure of Home Depot CEO, Robert
Nardelli. When he left, he received an exit package valued at around
$210 million. This is staggering when you consider that Home Depot
stock is worth less than the day he became CEO. So, he had added
zero value to shareholders during his tenure. But he added lots of
value for himself.
His dispute was centered around his compensation package. He didn’t
want to give up a guaranteed $3 million annual bonus. Who could
blame him? No one would like to give up such a guarantee.
The question is why the Board gave him such an extravagant package
in the first place. Was such an arrangement ever in the interest of
shareholders?
Boards need to represent the interests of shareholders and, in
this instance and unfortunately in many others, this doesn’t seem
to be happening. The time for change in corporate governance,
real change, is long overdue.
We are currently investigating the two cases listed below and if
you are an affected investor in either of these cases, you may
wish to contact us at info@securitiessleuth.com or 877.511.4717.
AtriCure (NASDAQ: ATRC) It is alleged that the Company neglected
to mention in its IPO documents that the Cleveland Clinic, where
a significant portion of procedures that used the Company's products
were being performed, was an investor in the Company. Nor did the
Company mention that some doctors at the Cleveland Clinic had
been paid consultants. On February 16, 2006, AtriCure disclosed
that the Company was experiencing a "negative impact" on its
business due to the revelations concerning the Cleveland Clinic.
Not surprisingly, the stock plummeted. Investors who purchased
AtriCure between August 4, 2005 and February 16, 2006, are affected.
Technical Olympic, Inc. (NYSE: TOA). On November 6, 2006,
the Company disclosed in a SEC filing that the Company faced exposure
for the full repayment of the loans of the Transeastern Joint Venture
in the event the Joint Venture voluntarily filed for bankruptcy protection.
More bad news would follow. On November 7, 2006, the Company
disclosed that one of the lenders to the joint venture had made a
demand on the Company in connection with the debt of the joint
venture. Technical Olympic plummeted on this news as the
Company had previously represented that the joint venture was
funded with non-recourse debt. It appears that investors who
purchased between August 1, 2005 and November 6, 2006, are affected.
Now with respect to securities cases that have recently settled. If you
are an affected investor – you purchased any of these stocks during
the relevant class period, you may wish to contact the claims
administrator to obtain additional information. Remember, if you
don’t submit your claim form, you won’t receive your share of any
settlement.
Wilbros Group, Inc. (WG)
Class Period: May 6, 2002 to May 16, 2005
Claims Deadline: February 28, 2007
Claims Administrator: Garden City
Krispy Crème Doughnuts (KKD)
Class Period: March 8, 2001 to April 18, 2005
Claims Deadline: March 5, 2007
Claims Administrator: Gilardi
Information regarding other recent settled cases, including the cases
listed below can be found at www.securitiessleuth.com.
Adelphia Communications (ADELQ)
Advanced Neuromodulation Systems, Inc. (ANSI)
Amerigroup Corp. (AGP)
Philip Services Corp. (PHV)
Again you should contact the claims administrator (rather than us).
However, if you are an affected investor in any of the companies
under investigation, you many wish to contact us so that you can
consider your options.
Likewise, if you happen to be aware of corporate restatements or
other financial fraud -- especially if you're a victim -- you're
encouraged to contribute to the Sleuth by giving your own tip-offs
at www.securitiessleuth.com or by e-mailing info@securitiessleuth.com.
You can also call Mark McNair at 877-511-4717. If you have a friend
or colleague you think would benefit from The Sleuth, please pass
along this issue and ask them to sign up at
www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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