Bracewell & Pier 1 Team Up for Major Securities Class Action Win

The Municipal Employees’ Retirement System of Michigan (MERS) and the Alaska Electric Pension Fund sued Fort Worth-based Pier 1 and two of its executives in 2015 claiming that they made false statements and misled shareholders about excessive inventory levels, which then led to millions of dollars in financial losses.

The 100-page lawsuit filed in the U.S. District Court in the Northern District of Texas cited dozens of former Pier 1 employees, provided photos of warehouses and even photos of an internal meeting that plaintiffs’ lawyers claimed was evidence that the company and its top officials had violated the U.S. Securities Exchange Act of 1934.

Pier 1 General Counsel Mike Carter hired Bracewell to defend the company and its then-chief executive officer and then-chief financial officer. Bracewell litigation Partners Stephen Crain and Bradley Benoit led a team from the firm’s Houston and Dallas offices.

The complaint attracted the attention of several media outlets, including daily newspapers and various business and trade publications, which published articles about the allegations.

Download The Texas Lawbook feature on Bracewell and Pier 1 below.