According to the latest docket, on March 01, 2000 the plaintiffs filed a Notice of Appeal against the Judgment for dismissal. On July 05, 2000, the Motion filed by parties to vacate the district court's judgment was granted. It was further ordered that the agreed motion filed by the parties to remand case to district court for purposes of approval of the proposed settlement is granted. Subsequently, on October 04, 2000, the parties filed the Stipulation and Agreement of Settlement. According to the settlement notice dated October 27, 2000, a "Settlement Fund" consisting of $2,000,000 in cash, plus interest, has been established. Plaintiffs estimated that the average recovery per damaged share of Paymentech common stock under the Settlement is 29.85¢ per damaged share before deduction of Court-awarded attorneys' fees and expenses. Furthermore, in the Order and Final Judgment dated January 04, 2001, the Court finds that the prerequisites for a class action have been satisfied...the plan of allocation is approved as fair and reasonable...plaintiffs' counsel are awarded the sum of $666,667.00 in fees which sum the Court finds to be fair and reasonable and $52,358.63 in reimbursement of expenses...the parties may agree to reasonable extensions of time to carry out any of the provisions of the Stipulation. The case is closed.
In the closing Order, dated 02/08/2000, from U.S. District Judge Sam Lindsay of the United States District Court for the Northern District of Texas, the defendants' motion to dismiss plaintiffs' second amended class action complaint was granted, and plaintiffs' claims was dismissed with prejudice. The court also found that plaintiffs' third amended complaint failed to state its claims or plead scienter with sufficient particularity under the securities laws and pleading rules.
The original complaint alleged that Paymentech and certain officers and directors of the Company during the relevant time period violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, by, among other things, misrepresenting material information concerning the Company's revenues, earnings and net worth and prospects for growth. In particular, the complaint alleged that Paymentech failed to disclose that at all relevant times the Company was experiencing a dramatic slowdown in sales due to the consequences of its acquisition by new majority-owner, BANC ONE Corporation ('BANC ONE') and that the Company's acquisition activity also slowed dramatically for the same reason.