According to the docket, on November 8, 2001, the Court entered the Order preliminarily approving the proposed settlement as set in the Stipulation of Settlement. The Settlement Fairness Hearing was scheduled for February 15, 2002. At the Fairness Hearing, the Court determined the action as a class action pursuant to Rules 23(a) and 23(b)(3) of the FRCP. The proposed settlement of the action pursuant to the stipulation was approved and all claims in the second amended complaint against defendants were dismissed with prejudice in their entirety. Plaintiffs' counsel was awarded attorneys fees in the amount of $1,000,000.00 representing 33% of the settlement fund, and to reimbursement of expenses in the amount of $136,297.87. Lead plaintiff William Mitchell was awarded reimbursement of lost wages in the amount of $380.00, payable from the settlement fund.
The Order and Final Judgment was signed by U.S District Judge Louis L. Stanton and the case was closed.
In a press release dated September 29, 2000, a federal judge in Manhattan denied a motion by two TIG Holdings Inc. officers to dismiss a class-action securities fraud suit against them after finding sufficient evidence that they knew the company's financial statements were false and misleading. The first amended complaint was dismissed for insufficient particularity in pleading fraud and for failure to state a claim. However, the investors were granted leave to replead. In the instant decision, Judge Louis Stanton denied the officers' motion to dismiss the second amended complaint.
The original complaint alleges that TIG Holdings and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing false and misleading statements concerning the adequacy of the company's underwriting standards and loss reserves, and that three of its officers and directors sold shares at prices that were artificially nflated as a result of the alleged misrepresentations.