NEW YORK, April 6, 2011 (GLOBE NEWSWIRE) -- On April 5, 2011, Scott+Scott LLP filed a class action complaint against Office Depot, Inc. ("Office Depot" or the "Company") (NYSE:ODP) and certain of the Company's officers in the U.S. District Court for the Southern District of Florida. The action for violations of the Securities Exchange Act of 1934 is brought on behalf of those purchasing the common stock and other publicly-traded securities of Office Depot between July 27, 2010 and March 31, 2011, inclusive (the "Class Period").
If you purchased Office Depot common stock or other Office Depot securities during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than 60 days from today. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott ( scottlaw@scott-scott.com, (800) 404-7770, (860) 537-5537 or visit the Scott+Scott website, ) for more information. There is no cost or fee to you.
The complaint filed in the action charges that, during the Class Period, Office Depot and certain of its officers and directors overstated the Company's profits and the value of the Company's assets in violation of Generally Accepted Accounting Principles ("GAAP").
As alleged in the complaint, Office Depot shocked the market on March 31, 2011 when it disclosed that the IRS had rejected significant carry-back tax "benefits" the Company had claimed in the 2Q, 3Q, 4Q and FY 2010, requiring that the Company restate its previously reported financial results for those reporting periods.
Rather than the net earnings of $33 million Office Depot had previously reported for fiscal 2010, the Company would report a net loss of $46 million and increase the net loss attributable to common shareholders from $2 million to $82 million. Additionally, the $63 million current tax receivable associated with the purported tax carry-back benefit would be removed from the Company's balance sheet, which was expected to significantly reduce anticipated 2011 operating cash flow.
As alleged in the complaint, Office Depot's Chief Financial Officer admitted that Office Depot had been in discussions with its tax advisors about the viability of carrying back certain net operating tax losses to prior tax years under economic stimulus-based tax legislation enacted in 2009 throughout the Class Period. None of this had been disclosed to investors though.
On the news that Office Depot's 2Q, 3Q and 4Q 2010 earnings reports were false and misleading, its assets were overstated, and its 2011 financial results would be adversely impacted, Office Depot's stock price plummeted, closing at $4.21 on April 1, 2011.
Scott+Scott has significant experience in prosecuting major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, foundations, individuals and other entities worldwide.
CONTACT: Scott+Scott LLP (800) 404-7770 (860) 537-5537 scottlaw@scott-scott.com