Advanced Marketing Services

Shareholders filed a class action lawsuit against the book publishing wholesaler and distributor related to the fraud and accounting scandal that surfaced in 2003. The lawsuit was filed in the United States District Court for the Southern District of California on behalf of purchasers of Advanced Marketing Services Inc. common stock between January 16, 1999 and January 13, 2004. The Justice Department and the Securities and Exchange Commission found fraudulent accounting practices that resulted in overstatement of Advanced Marketing's pre-tax earnings. Advanced Marketing Services has agreed to a $6 million class action settlement. (May-20-06) [UNION TRIBUNE]