After prior settlement agreement, on August 31, 2001 the court held a "Settlement Conference". The court finds that the proposed settlement to be fair, adequate. On September 5, 2001 the court ruled that all factors in the settlement have been satisfied and the court approves the settlement in the amount of $24,100,000. Attorney's fees awarded in the amount of $6,025,000.
By the Notice Of Pendency Of Class Action, a hearing will be held before the Honorable Denis R. Hurley, United States District Judge, United States District Court, Eastern District of New York, on August 31, 2001 at 2:30 p.m. in Room 930 of the United States Courthouse, 100 Federal Plaza, Central Islip, NY 11722, for the purposes of determining whether the Settlement is fair, reasonable, and adequate and whether it should be approved by the Court; whether judgment should be entered dismissing the Action with prejudice; whether the method of allocation for the distribution of the Class Settlement Fund should be approved as fair and reasonable; and to consider plaintiffs’ application for an award of attorneys’ fees and reimbursement of disbursements. The Settlement creates a fund in the amount of $24,100,000 in cash.
As summarized by the same Notice of Pendency, by Orders dated May 4, 1998 and July 10, 1998, the Court consolidated four pending Federal securities actions against Defendants and appointed the Waldman Plaintiffs Group as lead plaintiff and approved their selection of Lead Counsel. On September 8, 1998, the Class Plaintiffs, individually and as putative representatives of the Class, filed a consolidated amended class action complaint in the United States District Court for the Eastern District of New York, superseding all complaints previously filed by any of them relating to Olsten (the “Complaint”). The Class Plaintiffs allege, inter alia, that Defendants violated certain sections of the Securities Exchange Act of 1934 and the Securities Act of 1933 as a result of certain alleged material misstatements and omissions in connection with Olsten’s business, which allegedly had the effect of artificially inflating the market price of Olsten’s common stock. On or about October 19, 1998, Defendants filed a motion to dismiss the Complaint. After fully briefing the issues raised in Defendants’ motion to dismiss the Complaint, which motion has not been decided, counsel for Class Plaintiffs and counsel for Defendants engaged in discussions regarding the possibility of settling the Action.
The first complaint alleges that as a result of material concealed from investors, certain Olsten insiders sold large blocks of Olsten stock at artificially inflated prices, reaping proceeds in excess of $10 million. In August 1997, two additional lawsuits were filed in the United States District Court for the Eastern District of New York against the same defendants named in the Weichman lawsuit, plus Stuart Olsten. In September 1997, a fourth proposed class action lawsuit was filed.