According to the docket dated February 10, 2005, on October 8, 2004, the Court entered the Certified copy of the Order of the 11th Circuit Court of Appeals dismissing the Notice of Appeal pursuant to the appellants' motion for voluntary dismissal. The Notice of Appeal was originally filed by the certain Individual Defendants on November 27, 2002, after U.S. District Judge Charles A. Pannell denied the defendants’ motion for judgment.
Further, on July 29, 2004, the Court entered the Final Judgment and Order of Dismissal by Judge Charles A. Pannell dismissing the action with prejudice. Judge Charles A. Pannell approved the plaintiffs' application for approval of the settlement set forth in the Stipulation of Settlement dated as of March 10, 2004. Representative Plaintiffs' Counsel was awarded $1,000,000.00 as attorney fees and $259,202.12 as reimbursement of expenses.
The lawsuit charges Maxim and several of its top officers with violations of the securities laws and regulations of the United States. The complaint alleges that defendants issued a series of false and misleading statements concerning the Company's revenues during the 2nd, 3rd and 4th quarters of its 1999 fiscal year. The Company announced on May 19, 1999 that due to the incorrect statement of its revenues in the last three quarters of 1999 it would have to restate those results downwards. Upon the announcement of the restatement of its financial results the Company's stock price dropped approximately 15% on extraordinarily heavy trading volume. The complaint further alleges that certain Company insiders took advantage of their knowledge of the inflation in the Company's stock price to sell significant portions of their own company holdings for proceeds of at least $25,000,000.