Movie Gallery at the time stated that the expected cost of acquisition, plus operating expenses for 2007, was $10 million.
Movie Gallery bought it in March 2007, and the price tag had shrunk to $10 million or so.
During the next two days, though, Movie Gallery's shares were heavily traded, and its stock plummeted 25 percent.
Movie Gallery announced earnings results to the public nearly two weeks after the private conference call.
Determining whether any of Movie Gallery's loan holders misused information will be difficult.
Movie Gallery, meanwhile, has hired advisers to help turn itself around.
In 1999, Movie Gallery announced plans to build 100 new stores.
In 2000, Movie Gallery again set its goal at opening 100 new stores and relocating 25.
Movie Gallery paid $860 million, $13.25 per share, and the assumption of $380 million in debt.
The Movie Gallery is a video and game rental chain, with some stores that offer an "adults only" section.
