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StorMedia, Inc. Summary: According to the docket posted in the site, the court entered its Final Order and Judgment approving the settlement and dismissing the suit with prejudice on November 22, 2000.
In the Notice Of Pendency And Proposed Settlement dated July 11, 2000, the proposed settlement creates a fund in the amount of $3,250,000 (the "Settlement Fund") and will include interest that accrues on the Settlement Fund prior to distribution. As a part of the settlement agreement the Defendants have denied and continue to deny each and all of the claims and contentions alleged by the Representative Plaintiff in the Litigation. The Defendants expressly have denied and continue to deny all charges of wrongdoing or liability against them arising out of any of the conduct, statements, acts or omissions alleged, or that could have been alleged, in the Litigation. The Defendants also have denied and continue to deny, inter alia, the allegations that the Representative Plaintiff or the Class have suffered damage, that the price of StorMedia common stock was artificially inflated by reasons of alleged misrepresentations, non-disclosures or otherwise, or that the Representative Plaintiff or the Class were harmed by the conduct alleged in the Complaint. Nonetheless, the Defendants have concluded that further conduct of the Litigation would be protracted and expensive, and that it is desirable that the Litigation be fully and finally settled in the manner and upon the terms and conditions set forth in the Stipulation. The Defendants also have taken into account the uncertainty and risks inherent in any litigation, especially in complex cases like this Litigation. The Defendants have, therefore, determined that it is desirable and beneficial to them that the Litigation be settled in the manner and upon the terms and conditions set forth in the Stipulation.
The original Complaint alleged that StorMedia and certain of its officers and directors violated the federal securities laws by making misrepresentations that StorMedia was enjoying strong demand for all of its products and that the strong demand and a new, huge multi-year supply contract with Maxtor Corporation would result in StorMedia achieving substantial sequential revenue and earnings gains throughout 1996 and 1997. The complaint alleged that when StorMedia disclosed that it was encountering soft demand for its products, revealed that its second and third quarter 1996 results would decline, and that its contract with Maxtor had been canceled, its stock declined to $9 3/4 per share. The complaint also alleged that five of StorMedia's insiders sold over 207,000 shares of StorMedia stock during the class period at prices as high as $28.83 per share, and that two of the insiders sold 100% of their holdings while three others sold 63-79% of their holdings.
INDUSTRY CLASSIFICATION:
SIC Code: 3695
Sector: Consumer Cyclical
Industry: Audio & Video Equipment
| COMPANY/ISSUER NAME: | StorMedia, Inc. |
| COMPANY/ISSUER TICKER: | STMD |
| COMPANY WEBSITE: |
| FIRST IDENTIFIED COMPLAINT IN THE DATABASE | |||||||||||||||||
| Sara Werczberger, et al. v. StorMedia, Inc., et al. | |||||||||||||||||
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| DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT | |||
| Class Action Complaint | |||
| Type: Complaint | Date on the document: 06/19/1997 | ||
| Declaration of Amber L. Eck in Support of Motion To Be Appointed Lead Plaintiffs and... | |||
| Type: Declaration | Date on the document: 08/15/1997 | ||
| Notice of Motion and Motion To Be Appointed Lead Plaintiffs Pursuant to §21d(A)(3)(B)... | |||
| Type: Notice | Date on the document: 08/15/1997 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 02/08/1999 | ||
| Litigants | |||
| Type: Other | Date on the document: 04/22/1999 | ||
| Notice Of Pendency And Proposed Settlement | |||
| Type: Notice | Date on the document: 07/11/2000 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 12/04/2000 | ||
| U.S. District Court Civil Docket | |||
| Type: Docket | Date on the document: 12/04/2000 | ||
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