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Case Status:    SETTLED
On or around 01/12/2001 (Date of order of final judgment)

Filing Date: April 26, 1999

According to the docket dated January 21, 2005, on February 10, 2005, the Court entered the Order granting the Motion for Disbursement of Funds. Earlier, on January 12, 2001, the Court entered the Final Judgment of Dismissal with Prejudice by U.S. District Judge Denny Chin approving the settlement and dismissing the action with prejudice. The Class Counsel was awarded $750,000 in attorneys' fees and $72,151.32 as reimbursement of expenses and the case was closed.

The Complaint charges that Foamex and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing materially false and misleading statements concerning its financial condition and results of operations. Specifically, the Complaint alleges that defendants materially overstated Foamex' financial condition for the first three quarters of fiscal 1998, which artificially inflated the price of Foamex stock. At the same time, defendants reassured the investing public that the Company was in compliance with all covenants contained in its credit facilities. After the close of trading on April 16, 1999, Foamex shocked the market by announcing: (1) that it was seriously out of compliance with certain bank covenants and might have to re-classify all of its long-term indebtedness into current liabilities, affecting Foamex' status as a "going concern", (2) that it would report a $23 million loss in earnings before taxes and other deductions (EBITDA) for its fourth quarter of fiscal 1998 ($19.5 million less than previously estimated) and that its full fiscal year 1998 EBITDA would be $20 million less than previously estimated, (3) that the results of its first three quarters of fiscal 1998 might have to be restated, and (4) that it might incur a $65 million tax-related charge against earnings. The market reaction to the news was swift and severe. The price of Foamex stock plummeted to close at $6.50 on April 16, 1999 and $5.875 on April 19, 1999.

COMPANY INFORMATION:

Sector: Basic Materials
Industry: Containers & Packaging
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: FMXI
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 99-CV-03004
JUDGE: Hon. Denny Chin
DATE FILED: 04/26/1999
CLASS PERIOD START: 05/07/1998
CLASS PERIOD END: 04/16/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  2. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 99-CV-03004
JUDGE: Hon. Denny Chin
DATE FILED: 12/06/1999
CLASS PERIOD START: 05/07/1998
CLASS PERIOD END: 04/16/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  2. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  3. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
No Document Title Filing Date
No Document Title Filing Date