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1
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COMPLAINT
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EXTRACTED KEY WORDS
CORE BUSINESS SEGMENT INVENTORY STOCK MERCHANDISE MICHAEL FEUER CHIEF EXECUTIVE OFFICER SUPERSTORES MISLEADING RUTHERFORD MANAGEMENT PUBLICLY TRADED OPTIONS SELLING CHAIRMAN IMPROVING MERCHANDISE ASSORTMENT PURCHASERS VICE PRESIDENT BUSINESS MODEL SOLD OFFICE SUPPLIES GROSS PROFIT DEFENDANTS STORE OPENINGS REPORTED RECORD HIGH OPERATING INCOME FINANCIAL REPORTING ACCOUNTING PRINCIPLES FASB STATEMENT ENTERPRISE BULLISH REPRESENTATIONS |
UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF OHIO
EASTERN DIVISION
BERNARD FIDEL, On Behalf of Himself ) No.
and All Others Similarly Situated, ) CLASS ACTION
Plaintiffs, ))
vs. )) COMPLAINT FOR
OFFICEMAX, INC., ) VIOLATION OF THE
)
MICHAEL FEUER and JEFFREY L. SECURITIES EXCHANGE
)
RUTHERFORD, ACT OF 1934
))
Defendants. )
________________________________________ )
DEMAND FOR JURY
TRIAL
OVERVIEW
1. This is an action on behalf of all purchasers of the stock and publicly traded
options of OfficeMax, Inc. ("OfficeMax" or the "Company") between 3/2/99 and
9/30/99 (the "Class Period"). OfficeMax operates a chain of several hundred
discount office supply superstores or warehouses selling a broad range of office
supply products, including computers.
2. Beginning on 3/2/99, when OfficeMax reported its 4thQ fiscal 1998 ("F98")
results, OfficeMax, Michael Feuer (Chairman and Chief Executive Officer) and
Jeffrey L. Rutherford (Executive Vice President and Chief Financial Officer) made
false and misleading statements about the successful realignment of OfficeMax's
business model, the strong performance and positive momentum of OfficeMax's
Core Business Segment (which sold office supplies, furniture and business
machines excluding computers) and the Core Business Segment's improving
profitability due to its enlarged merchandise assortment and effective inventory
management. These bullish representations and forecasts artificially inflated
OfficeMax's stock to a Class Period high of $12-1/8 on 5/18/99 from $7-5/8 just
before the Class Period began. But then, on 9/30/99, OfficeMax revealed that its
2ndH F99 and F00 financial results were going to be much worse than earlier
forecast. OfficeMax's stock fell by over 32% in two days to $5 - the largest two-
day percentage price decline in OfficeMax's history as a public company - on
trading volume of over 10 million shares, and then continued to fall to as low as
$4-1/2 per share, its lowest price ever, a drop from which it has not recovered.
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