Partner James Schropp quoted, <i>The Wall Street Journal Online</i>,

Partner James Schropp quoted, The Wall Street Journal Online, "Action Performance Kept Mum on Executive's Background"

The article "Action Performance Kept Mum on Executive's Background" in the April 21st Wall Street Journal Online noted that "[a]s chief financial officer and treasurer at Action Performance Cos., R. David Martin Jr. is in charge of all the finances at the $300 million toy merchandiser. The company boasts to investors that Mr. Martin spent 32 years at accounting firm Deloitte & Touche LLP....One thing the company neglected to tell investors: In July 2000, just a month before he was hired, Mr. Martin reached an agreement with Arizona's attorney general settling civil charges brought by the state's Board of Accountancy alleging that Mr. Martin committed 'unprofessional conduct' at Deloitte.....The allegations revolved around Mr. Martin's role in supervising audits of...a thrift that failed in 1990....Experts say that while there are no specific rules forcing Action Performance to disclose Mr. Martin's history, a strong argument can be made that it should have been released publicly under general securities laws, which require the disclosure of all material information to investors.... 'Professional qualifications and prior proceedings are arguably something shareholders would deem to be material,' says Jim Schropp, partner at Fried, Frank, Harris, Shriver & Jacobson [LLP] in Washington. 'And you can't pick and choose, emphasize the good and ignore the bad' about an executive's background.'"

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