Office Depot, Inc ODP Securities Stock Fraud

Company:	Office Depot, Inc
Ticker Symbol:	ODP
Class Period:	Jul-27-10 to Mar-31-11
Date Filed:	Apr-5-11
Lead Plaintiff Deadline:	Jun-4-11
Court:	Southern District of Florida
Allegations:

New York, NY: A securities class action complaint against Office Depot, Inc. ("Office Depot" or the "Company") (NYSE:ODP) and certain of the Company's officers in the U.S. District Court for the Southern District of Florida. The action for violations of the Securities Exchange Act of 1934 is brought on behalf of those purchasing the common stock and other publicly-traded securities of Office Depot between July 27, 2010 and March 31, 2011, inclusive (the "Class Period").

The complaint filed in the action charges that, during the Class Period, Office Depot and certain of its officers and directors overstated the Company's profits and the value of the Company's assets in violation of Generally Accepted Accounting Principles ("GAAP").

As alleged in the complaint, Office Depot shocked the market on March 31, 2011 when it disclosed that the IRS had rejected significant carry-back tax "benefits" the Company had claimed in the 2Q, 3Q, 4Q and FY 2010, requiring that the Company restate its previously reported financial results for those reporting periods.

Rather than the net earnings of $33 million Office Depot had previously reported for fiscal 2010, the Company would report a net loss of $46 million and increase the net loss attributable to common shareholders from $2 million to $82 million. Additionally, the $63 million current tax receivable associated with the purported tax carry-back benefit would be removed from the Company's balance sheet, which was expected to significantly reduce anticipated 2011 operating cash flow.

As alleged in the complaint, Office Depot's Chief Financial Officer admitted that Office Depot had been in discussions with its tax advisors about the viability of carrying back certain net operating tax losses to prior tax years under economic stimulus-based tax legislation enacted in 2009 throughout the Class Period. None of this had been disclosed to investors though.

On the news that Office Depot's 2Q, 3Q and 4Q 2010 earnings reports were false and misleading, its assets were overstated, and its 2011 financial results would be adversely impacted, Office Depot's stock price plummeted, closing at $4.21 on April 1, 2011.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

Office Depot, Inc ODP Securities Fraud Legal Help

If you have suffered from financial losses, you may qualify for damages or remedies that may be awarded in a possible Office Depot, Inc securities class action lawsuit. Please fill in our form on the right to submit your complaint for a free evaluation.