Cases & Investigations

Adams Golf

CASE NUMBER: No. 99-371-GMS
CASE STATUS: Settled
SETTLEMENT AMOUNT: $16.5 million
COURT: District Court for the District of Delaware
TICKER SYMBOL: Nasdaq: ADGF

Berger & Montague serves as lead counsel in a federal securities class action brought against Adams Golf and its top officers and directors in connection with Adams Golf’s initial public offering (the “IPO”) in 1998.  The case also names as defendants the underwriters for the IPO.

Plaintiffs claim that the offering documents for the IPO misrepresented and failed to disclose the material risk posed by gray marketing.  At the time of the IPO, according to plaintiffs, Adams Golf’s business was severely impacted, and its prospects precarious, as a result of ongoing gray marketing activity, which involved discounters’ sale of Adams Golf clubs at low prices.  Discounters’ sales threatened Adams Golf’s allegedly “exclusive” retailer network.

The case has been extensively litigated.  Following initial motion practice, the Court dismissed the case.  Plaintiffs appealed, and the Third Circuit Court of Appeals reinstated the case.  Extensive proceedings followed.  The Court has certified the Class for the Class Period of July 9, 1998 – October 22, 1998.  Both fact and expert discovery have been completed.

Defendants’ motion for summary judgment, and the motions of both sides to exclude certain experts, have been fully briefed.  The parties await the Court’s ruling on these motions.  The case is essentially ready for trial.

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