Zila, Inc. - Securities Class Action

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_______________
Copyright (c) 2001
Stanford Law School

Zila, Inc. Conclusion: According to the docket, on March 1, 2001, the Court entered the Order by U.S. District Judge Owen M. Panner preliminarily approving the settlement. On June 6, 2001, the Court entered the Order granting the Plaintiff’s motion for final approval of the settlement. Further, the Court granted the motion awarding plaintiffs’ attorneys $523,359.59 in expenses and $1,725,000 in attorney's fees. The 4 Class Representatives were awarded compensatory awards in amount of $10,000 each, paid from the Settlement Fund. The Court entered the Final Judgment of Dismissal with Prejudice and dismissed the consolidated action with prejudice.

As reported by the Company’s Form 10-Q for the quarterly period ended January 31, 2001, the Company and certain officers of the Company have been named as defendants in a consolidated First Amended Class Action Complaint filed July 6, 1999 in the United States District Court for the District of Arizona under the caption In re Zila Securities Litigation, No. CIV 99 0115 PHX EHC. The First Amended Class Action Complaint seeks damages in an unspecified amount on behalf of a class consisting of purchasers of the Company's securities from November 14, 1996 through January 13, 1999 for alleged violations of the federal securities laws. Specifically, the plaintiffs allege that in certain public statements and filings with the Securities and Exchange Commission the defendants made false or misleading statements and concealed material adverse information related to OraTest(R) that artificially inflated the price of the Company's common stock in violation of the federal securities laws. In February 2001, the parties entered into a settlement agreement. The settlement agreement is subject to court approval. If approved, Zila's insurers will pay the entire $5.75 million settlement amount and the litigation will be dismissed.

In an earlier Form 10-K filed for the fiscal year ended July 31, 2000, in September 2000, the Court denied the defendants' motion to dismiss the First Amended Class Action Complaint and ordered that the matter proceed to trial on the issue of liability commencing on February 26, 2001.

The original complaint charges Zila and certain of its senior officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the Complaint alleges that defendants misrepresented the status of the clinical trials and the Company's application to the FDA for approval of its OraTest(R) oral cancer detection device. During the Class Period, Zila represented that it had submitted strong and compelling evidence of the product's efficacy to the FDA and that it expected approval. On January 13, 1999, an FDA advisory panel unanimously voted against approval. One panel member said, "I cannot think of a single credible scientific organization that would accept the research offered by the company." Zila's stock plummeted 44% upon disclosure of the recommendation of non-approval.

INDUSTRY CLASSIFICATION:
SIC Code: 2834
Sector: Healthcare
Industry: Biotechnology & Drugs

COMPANY/ISSUER NAME:	Zila, Inc.
COMPANY/ISSUER TICKER:	ZILA
COMPANY WEBSITE:	http://www.zila.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Todd M. Celley, et al. v. Zila, Inc., et al.

COURT: D. Arizona	DOCKET NUMBER: 99-CV-00115
JUDGE NAME: Hon. Earl H. Carroll
DATE FILED: 01/25/1999	SOURCE: Other
CLASS PERIOD START: 11/14/1996	CLASS PERIOD END: 01/13/1999
TYPE OF COMPLAINT: Unamended/Unconsolidated
PLAINTIFF FIRMS IN THIS OR SIMILAR CASE:
Berger & Montague PC 1622 Locust Street, Philadelphia, PA, 19103 (voice) 800.424.6690, (fax) 215.875.4604, investorprotect@bm.net Wolf Haldenstein Adler Freeman & Herz LLP 270 Madison Avenue, New York, NY, 10016 (voice) 212.545.4600, (fax) 212.686.0114, newyork@whafh.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT

Type:		Date on the document:

REFERENCE COMPLAINT

In Re: Zila, Inc. Securities Litigation

COURT: D. Arizona	DOCKET NUMBER: 99-CV-00115
JUDGE NAME: Hon. Earl H. Carroll
DATE FILED: 07/06/1999	SOURCE: Docket
CLASS PERIOD START: 11/14/1996	CLASS PERIOD END: 01/13/1999
TYPE OF COMPLAINT: First Consolidated
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Berman DeValerio Pease & Tabacco PC One Liberty Square, Boston, MA, 02109 (voice) 617.542.8300, (fax) , Bernstein Litowitz Berger & Grossmann LLP (San Diego, CA) 12544 High Bluff Drive, Suite 150, San Diego, CA, 92130 (voice) 858.793.0070, (fax) 858.793.0323, blbg@blbglaw.com Bonnett, Fairbourn, Friedman & Balint, P.C. 4041 N. Cental Avenue, Suite 1100, Phoenix, AZ, 85012-3311nta (voice) 602.274.1100, (fax) , Faruqi & Faruqi LLP 320 East 39th Street, New York, NY, 10016 (voice) 212.983.9330, (fax) 212.983.9331, Nfaruqi@faruqilaw.com Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA) 600 West Broadway, 1800 One America Plaza, San Diego, CA, 92101 (voice) 800.449.4900, (fax) , support@milberg.com Pomerantz Haudek Block Grossman & Gross LLP 100 Park Avenue, 26th Floor, New York, NY, 10017-5516ven (voice) 212.661.1100, (fax) 212.661.8665, info@pomerantzlaw.com/ Wolf Haldenstein Adler Freeman & Herz LLP 270 Madison Avenue, New York, NY, 10016 (voice) 212.545.4600, (fax) 212.686.0114, newyork@whafh.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 7

DOCUMENTS FOR THE REFERENCE COMPLAINT
First Amended Class Action Complaint
Type: Complaint		Date on the document: 07/29/1999
Notice Of Proposed Class Action Settlement And Hearing
Type: Notice		Date on the document: 03/08/2001
U.S. District Court Civil Docket
Type: Docket		Date on the document: 04/18/2002
U.S. District Court Civil Docket
Type: Docket		Date on the document: 01/31/2005

OTHER DOCUMENTS

Case Name and/or Number:
Type:		Date on the document:

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