On March 28, 2000, the United States District Court approved the settlement of the Consolidated Class Action Complaint. Under the terms of the Settlement Agreement, the Company has established a settlement fund in the amount of $3.5 million to settle the class action litigation. The Company contributed $2.5 million to the settlement fund, this amount was funded by the Company's insurance carrier. Pursuant to the Settlement Agreement, Andersen also contributed $1.0 million to the settlement fund. In addition, the Company has agreed to take the steps necessary to acquire all the shares held by public shareholders at a cash price of $0.75 per share.
On December 24, 1998, plaintiffs filed their First Consolidated Class Action
Complaint ('Consolidated Complaint') on behalf of themselves and all others who
purchased common stock of the Company from April 30, 1997 through July 27, 1998, with the exception of the defendants and certain related or affiliated persons
The Complaint in this action alleges that purchasers of Golden Bear common
stock during the Class Period were damaged by reason of overstatement of
revenues and understatement of expenses, which, when disclosed, resulted in a
restatement of Golden Bear's results of operations from a loss of $2.9 million
to a loss of $24.7 million during the 1997 fiscal year.
A class action complaint with similar allegations was filed in the U.S. District Court for the Eastern District of New York. That case was closed and transferred to the
U.S. District Court for the Southern District of Florida.