Jones Soda wins round in court, lays off 10

A class-action lawsuit against Jones Soda founder Peter van Stolk and other executives and directors of the company was dismissed Monday by U.S. District Judge Robert Lasnik in Seattle.

The suit, filed on behalf of people who bought Jones stock between January 2007 and last May, alleged they misled investors by misstating the company's market penetration, which led to the stock's overvaluation.

Jones' profit dropped a devastating 98 percent in the second quarter of 2007, a decline the company blamed on delays in getting its canned products onto retailers' shelves. Van Stolk stepped down later that year.

The lawsuit claimed van Stolk and others sold their personal stock to profit before the truth came out, but "plaintiffs acknowledge that the stock sales alleged in the complaint are not suspicious," Lasnik wrote in his opinion.

The judge addressed in detail seven statements by Jones Soda officials that the lawsuit alleged were false and dismissed the lawsuit.

Although this suit was a compilation of several shareholder claims, there remains another so-called "derivative" lawsuit, which shareholders file on behalf of a company against its management. Lasnik is expected to hear that lawsuit next.

"Although we're encouraged by this, we're still not finished," said Jones Chief Executive Stephen Jones.

The company laid off 10 people last week, after cutting 40 last fall.

It has 61 employees now, less than a year after it went on a hiring binge last summer to recruit 30 new people to keep tab on its products at stores in Seattle, Los Angeles and Chicago.

"We have to do everything possible to manage our cash and reduce expenses," Jones said.

Its stock closed at 43 cents and has traded as high as $6.50 during the last year.

Melissa Allison: 206-464-3312 or mallison@seattletimes.com