Pier 1 2016 Annual Report Download - page 61

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The lawsuit was filed on behalf of a purported putative class of investors who purchased or otherwise acquired stock of Pier 1
Imports, Inc. between December 19, 2013 through February 10, 2015, and seeks to recover damages purportedly caused by
the Defendants’ alleged violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the
Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint seeks certification as a class action,
unspecified compensatory damages plus interest and attorneys’ fees.
A second related case, captioned Town of Davie Police Pension Plan, Plaintiff, v. Pier 1 Imports, Inc., Alexander W. Smith and
Charles H. Turner, Defendants (the “Davie Case”), was filed in the United States District Court for the Northern District of Texas —
Dallas Division on October 21, 2015 making similar allegations on behalf of a purported putative class of investors who
purchased or otherwise acquired stock of Pier 1 Imports, Inc. between December 19, 2013 and September 24, 2015.
The Kenney Case and the Davie Case have been consolidated into a single action, captioned Town of Davie Police Pension
Plan, Plaintiff, v. Pier 1 Imports, Inc., Alexander W. Smith and Charles H. Turner, Defendants. The consolidated action is pending
in the United States District Court for the Northern District of Texas — Dallas Division. Although the ultimate outcome of litigation
cannot be predicted with certainty, the Company believes that this lawsuit is without merit and intends to defend against it
vigorously.
During fiscal years 2016, 2015 and 2014, there were various claims, lawsuits, inquiries and pending actions against the
Company incident to the operations of its business. The Company considers these other matters to be ordinary and routine in
nature. The Company maintains insurance against the consolidated class action noted in the preceding paragraphs and liability
insurance against most of the other matters noted in this paragraph. It is the opinion of management, after consultation with
counsel, that the ultimate resolution of such matters will not have a material adverse effect, either individually or in the aggregate,
on the Company’s consolidated financial position, results of operations or liquidity.
PIER 1 IMPORTS, INC. 2016 Form 10-K 55