According to the docket, beginning on June 9, 2000, U.S. District Judge Manuel L. Real granted several motions to dismiss the consolidated amended complaint as to certain Individual Defendants. Judge Manuel L. Real denied, however, the motion by defendant Motorcar Parts to dismiss the consolidated amended complaint. On June 28, 2001, a Stipulation for settlement was filed and on June 29, 2001, the judge preliminarily approved the proposed settlement. On September 18, 2001, the Court entered the Order granting the granting application for final approval of settlement, plan of allocation, and granting the application for attorney fees and reimbursement of costs and expenses. The settlement fund was in the amount of $7,500,000. The Final Judgment and Order was entered and the case was terminated.
Earlier, on December 1, 2000, the Court entered the Mandate from the Ninth Circuit Court of Appeals dismissed the appeal filed by the plaintiff in response to the November 8, 1999, Order denying plaintiff Desiderio’s motion for order for appointment of lead plaintiff and lead counsel.
The lawsuit alleges that defendants concealed from their shareholders accounting irregularities which have caused overstatement of the Company's earnings over the course of the past three years, including all of fiscal 1997 and 1998 and most of fiscal 1999, and in addition, that defendants continuously disseminated materially false and misleading statements regarding the Company's current financial performance and future business prospects. On August 1, 1999, the Company announced that, as a result of accounting irregularities, it expects to restate its previously reported financial results for fiscal 1997, 1998, and for the 1999 fiscal year through December 31, 1998. The Company further announced that accountants Richard A. Eisner & Company, LLP, had withdrawn their opinion on the Company's financial statements for the three years ended March 31, 1998, and that Company founder had resigned as chief executive officer.