On May 1, 2001, the Court entered the Order by U.S. District Judge Zita L. Weinshienk granting the motion for final approval of class settlement and plan of allocation, finding the plan fair, reasonable and adequate. The Court further entered the Order granting plaintiff’s motion for attorney fees. Plaintiff’s settlement counsel was awarded attorney fees of 25% of the settlement fund and reimbursement of litigation expenses in amount of $166,531.28, together with interest earned. Lastly, Judge Zita L. Weinshienk issued the Final Judgment and Order of Dismissal With Prejudice, terminating the case.
The original complaint charges Defendants The North Face, Inc. and certain of its officers and directors with violation of the Federal Securities laws. Specifically, during the Class Period, the defendants falsely reported North Face's financial results and overstated its sales growth causing the Company's stock price to trade at as high as $29. Ultimately on March 5, 1999, North Face announced its audited 1998 results were "delayed" and that, contrary to its repeated assertions during the Class Period that its financials were properly stated, adjustments to its 1997 results might be necessary. On this news, North Face's stock price dropped to as low as $10-7/8.