According to the firm's 10-K, on February 9, 1998, a consolidated amended complaint combining this suit and other litigation was filed in the United States District Court for the District of Massachusetts (the "Consolidated Litigation"). Also on February 9, 1998, the Company and lead counsel representing the plaintiffs in the Consolidated Litigation filed a
Stipulation of Settlement (the "Settlement Agreement"), whereby the Company and certain of its officers and directors would be released from liability arising from the allegations included in the Consolidated Litigation. In return, the Company agreed to pay the plaintiffs in the Consolidated Litigation $1.475 million in cash and to issue to these plaintiffs 37% of the Company's Common Stock. The Company also agreed to adopt certain corporate governance policies and procedures. The Court granted final approval of the Settlement Agreement of the Consolidated Litigation on April 29, 1998.
The original complaint charged Centennial and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, Centennial misrepresented material information concerning the company's revenues and net earnings for, at least, its fiscal year ended June 30, 1996, reported on Aug. 21, 1996, and its quarterly reporting periods for the first and second quarters of 1997. In particular, the complaint alleged that Centennial reported revenues and net earnings which were artificially inflated and materially overstated during the Class Period.