According to the docket, on June 7, 2000, a Stipulation of Settlement was filed, and on August 21, 2000, the Court entered the Final Judgment Order by U.S. District Judge Gary L. Taylor. The Court granted the motions for final approval of the settlement and the plan of allocation of the settlement proceeds. On September 22, 2000, the Court further entered the Order awarding the plaintiffs’ settlement counsel’s attorney fees in the amount of $208,344.14.
By the Notice of Pendency and Proposed Settlement of Class Action A settlement hearing will be held on August 21, 2000, at 10:00 a.m., before the Honorable Gary L. Taylor, United States District Judge, at the Ronald Reagan Federal Building and U.S. Courthouse, 411 W. Fourth Street, Santa Ana, California (the "Settlement Hearing"). The purpose of the Settlement Hearing will be to determine: (1) whether the settlement consisting of $3,000,000 in cash (plus accrued interest) should be approved as fair, just, reasonable and adequate to each of the parties; (2) whether the proposed plan to distribute the settlement proceeds (the "Plan of Allocation") is fair, just, reasonable, and adequate; (3) whether Representative Plaintiffs' Counsel have adequately represented the Class; (4) whether the application by Representative Plaintiffs' Counsel for an award of attorneys' fees and expenses should be approved; and (5) whether the Litigation should be dismissed with prejudice.
The original complaint charges the Company and certain officers/directors with making false representations that continuing strong demand for the Company's cellular telephone amplifier in South Korea, and successful geographic diversification of the Company's business would generate 30%- 40% earnings per share, thus artificially inflating Powerwave's stock. Then, on 1/15/98, Powerwave admitted that, due to order cancellations from its largest Korean customers, problems with Korean currency and an inability to make up the Korean sales shortfall elsewhere, its 1998-99 results were going to be much worse than forecast. Powerwave's stock then dropped by almost 40% on that one day.