According to the docket, on November 2, 1998, the Court entered the Final Judgment and Order of Dismissal by U.S. District Judge Thomas S. Zilly. That day, the Court also entered in the Order awarding attorneys’ fees and reimbursement of expenses.
As reported in the Company's Form 10-K filing for the fiscal year ended March 31, 1999, in August 1998, the Company, its insurance carrier and the plaintiffs reached an agreement to settle the lawsuits, which had previously been consolidated as one
lawsuit. On October 30, 1998, the judge approved the Settlement. Under the terms of the Settlement, the plaintiffs received a cash payment of $1.6 million without any admission of liability or wrongdoing by the defendants.
In a Press Release dated May 7, 1998, the company said its liability insurance carrier will pay the plaintiffs $1.5 million in settlement and certain settlement
administration expenses in an amount no greater than $100,000. A three-year promissory note, payable to the insurance carrier, will finance Geographics' contribution to the settlement. Geographics, although denying liability for any alleged wrongdoing, said it decided to settle the lawsuit because of the expenses of defending itself.
According to the firm's 10-K dated March 22,1999, in 1997 the Company, the Company's President, Chief Executive Officer and Chairman of its Board of Directors; and the Company's former Vice President of Finance and Chief Financial Officer, were named as defendants in a securities action filed on July 17, 1997 in the U.S. District Court for the Western District of Washington (the "Complaint"). The Complaint was filed on behalf of a class of purchasers of the Company's Common Stock during the period beginning on August 6, 1996 (the day the Company announced financial results for the first quarter of its 1997 fiscal year) and ending on
June 12, 1997 (the "Class Period"). The Complaint alleged, among other things,
that, throughout the Class Period, the defendants inflated the price of the
Common Stock by intentionally or recklessly making material misrepresentations
or omissions which deceived the public about the Company's financial condition
and prospects. The Complaint alleges claims under Sections 10(b) and 20(a) of
the Securities Exchange Act of 1934 and seeks damages in an unstated amount. Two separate but related complaints (the "Related Complaints") naming the same
defendants and alleging substantially similar claims as set forth in the
Complaint were filed in the U.S. District Court for the Western District of
Washington on July 22, 1997 and July 23, 1997.