Posted By:
RickJudge Rules That Headline of Press Release Prepared by Attorneys for Former Executive Concerning Verdict is Misleading
Judge Orders Plaintiff's Attorneys to Retract Misleading Headline
NEWPORT BEACH, Calif., Nov. 9 /PRNewswire-FirstCall/ -- Collectors Universe, Inc. (Nasdaq: CLCT), a leading provider of value-added authentication and grading services to dealers and collectors of high-value collectibles, today announced that an Orange County, California trial judge presiding over a case brought against the Company by a former employee, has issued an order that the headline of the press release, such release prepared earlier in the day by Boudreau, Albert & Wohlfeil, attorneys for that former employee, is misleading.
The Judge's order states, in part, that:
"The jury did reach a verdict in this matter on November 7, 2005, finding
that 14,060 certificates of authenticity were issued by Collectors
Universe, Inc. using William Miller's name and awarded Plaintiff
William W. Miller only $14,060 for disgorgement of profits. The jury has
not rendered a verdict for $10,500,000 or any amount other than $14,060.
Furthermore, the jury was discharged on November 7, 2005, the verdict was
adopted by this Court and the Court will determine the amount of damages
awardable under Civil Code section 3344."
The Judge also ordered the plaintiff's attorneys to retract the misleading headline, contained within their press release, announcing the $10.5 million verdict.
As disclosed in the Company's Quarterly Report on Form 10-Q filed today with the Securities and Exchange Commission, despite the assertion of plaintiff's counsel that he is entitled to recover damages in excess of $10 million, the Company continues to believe that it will not incur any material liability to plaintiff in this case. However, there is little interpretive history with respect to the California statute, creating a number of relatively novel legal issues. As a result, it is not possible to predict, with certainty, how the Judge will ultimately rule on the issue of damages.
About Collectors Universe
Collectors Universe, Inc. is a leading provider of value added authentication and grading and certain related services to high-value collectibles and other high value asset markets. The Collectors Universe brands are among the strongest and best known in their respective markets. The Company authenticates and grades collectible coins, sports cards, autographs and stamps and, with its acquisition of GCAL, now also authenticates and grades diamonds. The Company also compiles and publishes authoritative information about collectible sports cards and sports memorabilia, United States and world coins, and entertainment memorabilia. This information is accessible to collectors and dealers at the Company's web site, http://www.collectors.com, and is also published in print. In addition, with its acquisition of the "Palmieri's Market Monitor" the Company will also be publishing authoritative information about diamonds.