December 24, 2003 08:01 AM US Eastern
Timezone
Farmer Bros. Confirms
U.S. District Court Decision
TORRANCE,
Calif.--(BUSINESS WIRE)--Dec. 24, 2003--Farmer Bros. Co. (Nasdaq:FARM)
said the U.S. District Court in Los Angeles on Tuesday issued a 33-page
tentative order regarding an application for preliminary injunction
sought on behalf of a shareholder, Leonard Rosenthal.
In stating the court's "Conclusion Regarding
Preliminary Injunctive Relief," U.S. District Judge Margaret M. Morrow
wrote:
"Plaintiff has not shown that it is likely the court
has subject matter jurisdiction to hear this action. Specifically, he
has not demonstrated that he has a private right of action under the ICA
(Investment Company Act) for violation of Section 7(a) and 17(a). Since
this is the only federal claim in the case, and since plaintiff has also
failed to plead or prove that the action falls within the court's
diversity jurisdiction, it appears jurisdiction is lacking. Even if the
court assumes it has jurisdiction to hear the matter, moreover,
plaintiff has not shown a likelihood of success on the merits of either
his ICA or breach of fiduciary duty claims. Likewise, he has failed to
demonstrate that he will suffer irreparable harm if an injunction does
not issue. Finally, the balance of hardships does not tip sharply in
plaintiff's favor. Accordingly, preliminary injunctive relief is not
appropriate in this case."
Farmer Bros. Co. is an institutional coffee roaster
that sells a variety of coffee and allied products to the food service
industry. The company's signature trucks and vans bearing the
"Consistently Good" logo are seen throughout Farmer Brothers' 28-state
service area. Farmer Brothers has paid a dividend for 50 consecutive
years, increased the dividend in each of the last seven consecutive
years, and its stock price has grown from $18 in 1980 to over $300 a
share today. The company's common stock is traded on the NASDAQ National
Market System under the symbol "FARM." |
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