According to the docket dated August 14, 2001, on April 17, 2001 the parties filed a Joint Motion for preliminary approval of class action settlement, for certification of a settlement class, for approval of notice of settlement hearing. On May 09, 2001 the court signed an order granting joint motion for preliminary approval of class action settlement, for certification of a settlement class, for approval of notice of settlement hearing. In the Order and Final Judgment filed on August 14, 2001, plaintiff's counsel are awarded $231,250.00, which constitutes 25% of the Settlement Fund, as attorney's fees, and $31,666.67 in reimbursement of expenses.
In April 1999, the court denied as moot the motion to dismiss consolidated amended class action complaint, and denied as moot the motion for class action certification (the order was signed by Judge K. M. Moore on 2/25/99). As a result, the case was still debatable or unsettled. According to the Court's docket sheet as of February 25, 2000, Allan Cohen, plaintiff's firm, filed a Notice of Change of Address of attorney, and after that no further action was taken until early 2000.
According to Form 10-KSB For The Fiscal Year Ended March 31, 1998, a total of eight class action lawsuits were filed between November 1997 and January 1998. In March 1998 the court dismissed seven of the complaints and required the plaintiffs of the dismissed complaints to file by amending the remaining complaint.
The original complaint alleges that some material misrepresentations and omissions (described in the Complaint) directly and proximately caused or were a substantial contributing cause of the damages sustained by plaintiff and other members of the Class. The significant scope of those damages is illustrated by the fact that Caribbean common stock traded as high as $5.25 per share during the class period, and is now trading at $1.75. As described herein, during the Class Period, defendants made or caused to be made a series of false statements concerning the Company's business operations and prospects and failed to disclose material information concerning the same factors. These material misstatements and omissions had the cause and effect of creating an unrealistically positive assessment of Caribbean, its business and its prospects in the market, thus causing the Company's common stock to be overvalued and artificially inflated at all relevant times. Defendants' false portrayal of Caribbean, its business operations and prospects during the Class Period resulted in plaintiff and other members of the Class purchasing the Company's common stock at market prices significantly in excess of the actual value of those securities. Plaintiff and other members of the Class would not have purchased the Company's stock at the market prices which prevailed during the Class Period, if at all, had they been aware of the true facts concerning the Company's business operations and prospects.