CU LEGAL UPDATE - GOOD NEWS ( for the most part)

airjoedan

Judge 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.

Mefer

Thanks for the update. That is a relief to read. No way a judge will award 10.5 million.

WinPitcher

Interesting development.

some crow may be on some plates.

Steve

stevek

Gee whiz...a trial attorney being "misleading" - what a surprise!

DaBigHurt

You see? just as I said all along! PSA/DNA did absolutely nothing wrong. Those autographs were never proven fake, so it's perfectly fine. Please be assured that each and every single autograph authenticated by PSA/DNA has gone through the industry's most stringent authentication process, a process conducted by the TRAINED and CERTIFIED forensic document examiners.

calleocho

I dont collect autos ...so excuse my ignorance but who is William W. Miller ?

I've never heard of this guy

MiniMaster

How much could CU get out of this law firm for mis-leading remarks that could have had an impact on CU's Stock?

williplett

Big Hurt, did you read the Simon piece linked in the other thread? He has proof that PSA/DNA has "authenticated" rubber stamped items and issued authentication documention for an Ernie Banks bat that didn't even have an autograph!!

Here is an old joke. The guy offers the woman a million dollars to sleep with him and she says yes. He then recants and says he will give her only $100. She replies "what do you think I am, a whore?" He says "we have already established that, now I am just dickering on the price"

The point is that whether the penalty is over 10 million or $14, 065, the jury still found that there were 14, 065 cases of fraud on PSA/DNA's part. The amount of the settlement might matter to the stockholders, but I am worried about the blow to the credibility to the service that I have been using.

ndleo

I agree with willi. The amount of the verdict isn't the issue for us. We won't see any of that money and even if it goes to $10.5m, CLCT can pay that tab.

My question is who is watching the shop? PSA always boasts about their "state of the art" process and controls. This verdict is an indication that somebody at PSA is doing sloppy work. If PSA were a fast food place, I wouldn't really care. However they are supposed to be an PROFESSIONAL Sports Authenticator. 14,000+ misleading certs is not professional. I'm not saying false certs, but they do imply that Miller looked at them, when in fact he didn't.

Mini - I don't think CLCT could get a dime from the defense lawyers because their release states that the final award could result in a $10.5 m verdict, which is in fact true. It may not be likely, but it is possible.

I wonder if this Miller is related to the Miller boys who sell tons of autos in the hobby rags.

ndleo

Also if the dollar amount was so low, why didn't they settle out of court? Stories like this stay in the hobby for a long time. Even they paid Miller $1 million to shut up, it would have been worth it to protect their reputation (which is all they really have in this hobby).

Either their must be something personal between PSA and Miller or the PSA Lawyers stink.

rbdjr1

I submitted an '83 Topps Foldouts card (i think it was a, Rose/Guerrero), PSA ask me for an extra $20 to authenticate Pete Rose's and Pedro Guerrero's autographs. Well, I replied back to them, "those are not auctual autographs, but are just printed on the card by Topps."


PSA decided not to bill me for the extra $20! LOL!

rbd

DaBigHurt

There is NO PROOF whatsoever that the TRAINED and CERTIFIED forensic document examiners at PSA/DNA ever "authenticated" a rubber stamp as authentic. None whatsoever!

williplett

Big Hurt, Did you read the Simon link?? He has plenty of PROOF that the TRAINED and CERTIFIED examiners at PSA/DNA screwed up BIG time.

They were unable to render a Quick Opinion on a DiMaggio item that was certified to be signed IN THEIR PRESENCE! How about the Banks bat deal and all the other cases that Simon illustrates with supporting PROOF.

How about the fact that the Better Business Bureau rates PSA as unsatisfactory for their history of unresolved customer service issues.

I am not saying that fraud is crawling around in every corner of PSA, but I am saying that there is plenty to be worried about. I am sure that Enron's CFO was a TRAINED and CERTIFIED accountant and look what good that did them.

ndleo

Who certifies these authenticators? Bill Miller?

How about the autopen George Bush signatures PSA/DNA certified? Check out the Richard Simon report, the link on the original post that started this.

DaBigHurt

I saw the Mcgwire "rubber stamped" card they had on that site, and that signature looks legit to me. We have to keep in mind, it's impossible to verify the authenticity of a signature through a photo. The TRAINED and CERTIFIED forensic document examiners at PSA/DNA were able to look at the Mcgwire signature up close and deemed it good. That's good enough for me.

williplett

Big Hurt, is everything in the Simon link bunk then? Even though he has PROOF? Face the facts Big Hurt and don't continue making a fool of yourself.

Loyalty is a good trait, but blind loyalty in the face of facts proving otherwise is a bad thing.

Admit that PSA/DNA made some big mistakes here and were found quilty of 14,065 mistakes by a jury.

DeutscherGeist

I am glad the Better Business Bureau was brought up. That speaks for itself. I won't say more. Don't need to.

bobbybakeriv

Williplett, DBH is just messing with the board. It is his act. He is poking fun at blind PSA loyalty, etc.