According to the Company's FORM 10-Q for the quarterly period ended September 30, 1999, on October 28, 1999, the federal district court approved a settlement to the class action lawsuits against ValuJet Airlines. Although the Company denied that it violated any of its obligations under the federal securities laws, it agreed to pay $2.5 million in cash and $2.5 million in common stock in the settlement.
In 1996, several stockholder class action suits were filed against the Company and
certain of its executive officers ('Defendants'). The consolidated lawsuits
sought class certification for all purchasers of stock in the Company during periods beginning on or after June 1995 and ending on or before June 18, 1996, and are based on allegedly misleading public statements made by the Company or omission to disclose material facts in violation of federal securities laws. A total of 14 stockholder lawsuits were filed against and served upon the Company between May 30, 1996 and July 26, 1996.