Vivian Oh, Et Al. V. Navarre Corp, Et Al. 05-Cv-1211-Class Action Complaint
F V 1, 3 UNITED STATES DISTRICT COURT DISTRICT OF MINNESOTA VIVIAN OH, Individually and on Behalf of All Civ. No. D,5' Others Similarly Situated, CLASS ACTION Plaintiff, COMPLAINT FOR VIOLATIONS OF FEDERAL vs. SECURITIES LAWS NAVARRE CORPORATION, ERIC H . PAULSON, JAMES G . GILBERTSON, BRIAN T. BURKE, CHARLES E, CHENEY and CARY L . DEACON, Defendants. DEMAND FOR JURY TRIAL NATURE OF THE ACTION This is a federal class action on behalf of purchasers of the common stock of Navarr e Corporation ("Navarre" or the "Company") between January 21, 2004 and February 22, 2005, inclusive (th e "Class Period"), seeking to pursue remedies under the Secu rities Exchange Act of 1934 (the "Exchange Act") . 2 . Navarre was formed in 1983 and is headquartered in New Hope, Minnesota, Defendant Navarre engages in the publication and distribution of various home entertainment and multimedia products , including personal computer software, audio and video titles, and interactive games . During the Class Period, defendants issued false financial results which understated expenses in at least the third quarter of fiscal 2004 and first quarter of fiscal 2005.' As a result, Navarre's stock trade d at artificially inflated levels, trading above $15 per share during the second half of calendar 2004. 4. On January 10, 2005, Navarre announced the acquisition of FUNimation Productions, Ltd. and The FUNimation Store, Ltd. (collectively "FUNimation") for $100 million in cash and between 1 .495 million and 1 .827 million shares of Navarre stock, depending on the price of Navarre stock. The release noted FUNimation' s growing sales from 2001 to 2003, but did not report its sales for any period of 2004.
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