According to the latest docket posted, on January 6, 2003, the Court entered the certified copy of the judgment from the U.S. Court of Appeals affirming the decision of the District Court regarding plaintiffs' counsel's attorney fees.
Earlier, on March 31, 1998, a Stipulation of Settlement was filed, and on July 28, 1998, the Court entered the Order by Judge Rudi M. Brewster preliminarily approving the settlement. On October 27, 1998, The Court entered the Order approving the plan of allocation of the settlement proceeds and the Court further entered the Final Judgment and Order of Dismissal. The case was dismissed. The Notice of Pendency previously announced a $6.5 million settlement. On November 25, 1998, a plaintiff filed a Notice of Appeal regarding the October 29, 1998 Order awarding plaintiffs’ counsel’s fees and expenses in the amount of 30% of the settlement fund and $338,379.53 in expenses. On January 29, 2001, the Court entered the certified copy of the judgment from the U.S. Court of Appeals vacating and remanding the matter back to the District Court. On April 11, 2001, the Court entered the Order awarding plaintiffs’ counsel’s fees and expenses in the amount of $338,379.53, plus interest. On August 29, 2001, the Court entered the Order denying the motion for attorney fees and the plaintiff filed a Notice of Appeal.
The original complaint charges Proxima and certain of its officers and directors with violations of the federal securities laws. During the Class Period, the defendants artificially inflated Proxima stock to as high as $39-5/8 per share based on representations that Proxima had successfully developed and was introducing new lighter weight and brighter desktop projectors which would lead to substantial revenue and earnings gains throughout Fiscal 1996 and 1997 and that the development of Proxima's new microlaser projector products was also succeeding and on schedule. However, when Proxima later revealed that it could not produce its newest products in volume due to an inability to obtain satisfactory supplies of polysilicon glass, shortages of metal halide lights and other component part shortages and that this would adversely impact its revenues and earnings, Proxima's stock immediately collapsed to $18-3/4 per share and then continued to fall to $13-1/2.