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This excerpt taken from the C 8-K filed Oct 13, 2009. 27001 Partnership, et al. v. BT Securities
Corp., et al. In December 2004, 46 individual purchasers of
10-1/2% Senior Subordinated Notes (the “Notes”) issued in 1995 in connection
with the leveraged recapitalization of Bruno’s Inc. sued the underwriters of
the Notes, including Salomon Brothers, Inc., together with Bruno’s
auditors, in Alabama state court. Plaintiffs brought state law claims arising
out of, among other things, alleged material misrepresentations and omissions
in the Prospectus issued in connection with the offering. The case was filed
following the prior dismissal, after years of motion practice, of a lawsuit
brought in April 2000 by the investment advisor to these 46 plaintiffs on
behalf of its clients, which alleged identical claims against defendants.
Plaintiffs allege that they purchased $190 million of the Notes and seek
compensatory damages, punitive damages, attorneys’ fees and costs. After the
commencement of the case in 2004, the parties engaged in extensive procedural
motion practice, which resulted in the dismissal of several defendants on October 14,
2005. Discovery is ongoing and trial is currently scheduled to commence in February 2010.
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