According to docket 98-CV-04163, after the case was intra-district transferred, a Stipulation of Settlement was filed on February 11, 1999. On March 3, 1999, the Court entered the Preliminary Order by U.S. District Judge Margaret M. Morrow preliminarily approving the proposed settlement and setting the settlement conference for May 3, 1999. On May 5, 1999, the Court entered the Order granting the motion for approval of the proposed settlement. The action settled for $14,800,000. The Court awarded plaintiffs’ counsel attorney fees in the amount of 30% ($4,440,000) of the settlement fund including interest. The Court further awarded the amount of $2,500 to each of the 3 named class representatives Sheldon Kriegel, Michael Tsenter & Harold Wallach as and for reasonable reimbursement of their time and expenses. The action was dismissed and the case was terminated.
On May 27, 1998, the Court entered the Order by Chief Judge Terry J. Hatter transferring the case from Judge Linda H. McLaughlin to Judge Margaret M. Morrow. The case was intra-district transferred from the U.S. District Court of California for the Central, Southern Division to the Western Division.
The original complaint in the action alleges that during the class period, defendants made dramatic claims about Pacific's Solium fluorescent light technology and the commercial readiness of, and prospects for, certain lighting products using this technology. It is alleged that defendants' statements were materially false and misleading because, among other things, the technology was not fully developed and had serious defects, severely restricting its commercial viability. It is further alleged that defendants' misrepresentations caused a steep rise in the price of Pacific common stock and allowed certain officers and directors to reap substantial profits by selling company stock at artificially inflated prices.