Shareholder alleges big 5 wasn't playing by the rules.THERE are no timeouts for Big 5 Sporting Goods Big 5 Sporting Goods (NASDAQ: BGFV) is a sporting goods retailer headquartered in El Segundo, California with 344 stores in 10 western states. Steven G. Miller is the Chairman, President, and CEO. Corp. After repeated requests to retain its stock listing, Nasdaq relented when Big 5 finally filed its tardy tar·dy adj. tar·di·er, tar·di·est 1. Occurring, arriving, acting, or done after the scheduled, expected, or usual time; late. 2. Moving slowly; sluggish. 2004 annual report this month. But now a shareholder has sued the El Segundo-based company, alleging Big 5's financial reporting problems were a breach of its fiduciary duties Noun 1. fiduciary duty - the legal duty of a fiduciary to act in the best interests of the beneficiary legal duty - acts which the law requires be done or forborne . The shareholder, William Childers, filed a class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax last month in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. Superior Court against Big 5's board of directors and executive officers. The complaint highlights accounts payable errors, delayed Securities and Exchange Commission filings and failure to hold the annual stockholders' meeting on a timely basis. In February, Big 5 announced it restated its finances for the fiscal years 2001, 2002 and 2003 due to accounts payable errors. Net income was reduced by a total of $4.7 million. The company also missed deadlines to report its finances to the Securities and Exchange Commission. It eventually filed its annual report late, but has yet to file its first- and second-quarter statements, due on the extended deadline of Sept. 30. As a result of Big 5's reporting difficulties, the complaint claims that Steven Miller, Big 5's chief executive, and Charles Kirk, chief financial officer, were unjustly enriched. In 2003, Miller earned just over $1 million in salary and cash bonuses, plus 30,000 stock options, and Kirk earned $453,452 in salary and cash bonuses, plus 10,000 stock options. "Defendants willfully willfully adv. referring to doing something intentionally, purposefully and stubbornly. Examples: "He drove the car willfully into the crowd on the sidewalk." "She willfully left the dangerous substances on the property." (See: willful) ignored the obvious and pervasive problems with Big 5's accounting and internal control practices and procedures and made no effort to correct the problems," stated the complaint, which did not specify damages. In its annual report, Big 5 states the lawsuit is without merit, though it acknowledges that a judgment could harm its financial condition. "(Big 5) intends to defend the suit vigorously," the report states. Staff reporter Rachel Brown Rachel Brown (born July 2 1980) is an English footballer, currently playing as goalkeeper for Everton Ladies and England Women. After a long spell out with injury, Brown returned to the England team against Sweden in the last group game of Women’s Euro 2005. can be reached by phone at (323) 549-5225, ext. 224, or by e-mail at rbrown@labusinessjournal.com. |
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