Office Depot Faces Shareholder Suit
Boca Raton, Fla., Alocal law firm has filed a suit against Office Depot on behalf of its shareholders, alleging violations of federal securities laws, according to the South Florida Business Journal. Office Depot did not comment on the report.
According to the suit, filed by Boca Raton, Fla.-based Saxena White P.A. in the U.S. District Court for the Southern District of Florida, Office Depot issued false and misleading statement regarding its positive financial results, the strength of its assets and prospects for future growth. Then, on Oct. 29, the Delray Beach, Fla.-based office-supply company said it delayed the release of its third-quarter earnings because of an independent review by the audit committee of its vendor program funds concerning the timing of revenue recognition and the accounting for certain vendor payments.
The suit seeks class-action status and damages on behalf of all investors who bought Office Depot stock between April 26, 2006, and Oct. 26, 2007.