According to the docket, on August 25, 2003, the remaining defendants filed a Stipulation and Agreement of Settlement, and on September 10, 2003, the Court granted preliminary order of approval of settlement and set the settlement fairness hearing for December 10, 2003. On December 16, 2003, the Corut entered the Order and Final Judgment, awarded counsel for lead plaintiffs and other members of the Class 30% of the Gross Settlement Fund and $30,430.99 in reimbursement of expenses, and the appeal was dismissed pursuant to the joint stipulation of the parties.
By the posted Notice regarding settlement, TCPI sought bankruptcy protection in July of 2001. On July 20, 2001, the United States Court of Appeals for the Eleventh Circuit issued an order staying the appeal pursuant to the automatic stay provisions of Bankruptcy Code 11 U.S.C. §362(a). On September 10, 2002, on joint motion of TCPI and the Plaintiffs, the Court dismissed the appeal against TCPI without prejudice, and ordered that the stay of the appeal be lifted so that the appeal could proceed against the remaining Defendant.
As reported by the Company’s Form 10-Q/A for the quarterly period ended March 31, 2001, during November 1998 through January 1999, several lawsuits were filed in the United States District Court for the Southern District of Florida - Case No. 98-7334-CIV-DIMITROULEAS - against us and our former Chairman on behalf of various shareholders alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5 promulgated thereunder. In general, plaintiffs allege that we and our former Chairman made untrue and misleading statements in our public disclosure documents and in certain press releases, articles and reports. The disclosures relate primarily to the development, clinical testing and viability of our TD Glucose Monitoring System. The plaintiffs sought certification as a class on an unspecified amount of damages, interest, costs and attorneys' fees. On April 19, 1999, an Amended Consolidated Class Action Complaint was served upon us. On June 18, 1999, we filed a motion to dismiss the Amended Consolidated Class Action Complaint.
On July 3, 2000, the court dismissed all claims against us and our former
Chairman, but granted plaintiffs leave to amend their complaint on or before
July 24, 2000. On July 24, 2000, plaintiffs filed a second amended complaint. On
August 25, 2000, we filed a motion to dismiss the second amended complaint. On
March 20, 2001, the Court issued a Final Order of Dismissal, dismissing with
prejudice the second amended complaint. The Plaintiffs have appealed the
Dismissal Order to the United States Court of Appeals for the Eleventh Circuit.
The original Complaint names TCPI and the Company's Chief Executive Officer as defendants, alleging that these parties violated Sections 10(b) and 20(a) of the Exchange Act, as well as SEC Rule 10b-5 promulgated thereunder, by originating a series of materially misleading statements and omissions concerning the Company's business prospects and the development of a non- invasive transdermal glucose monitoring system (the "Glucose Patch").