According to the docket dated April 6, 2004, on September 22, 2003, the court entered a Final Judgment of dismissal with prejudice by U.S. District Judge James D. Whittemore. Earlier, on August 28, 2003, the Court granted the motion for attorney fees and expenses and awarded plaintiffs’ counsel $625,000.00 in attorneys' fees and $368,445.78 in expenses. The Stipulation of Settlement was entered and preliminarily approved by Judge Whittemore on February 18, 2003.
By the Notice of Hearing on Proposed Settlement, the settlement fund established consisted of $2,500,000 in cash.
The original class action suit charges defendants with violation of the securities Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the Complaint alleges that Vision 21 misrepresented its ability to integrate the acquisitions that the Company had made during the Class Period and misstated its revenues, net income, and expenses reported in the Company's financial statements for the first and second quarters of fiscal 1998. The complaint further alleges on or around November 6, 1998, Vision 21 shocked the market when it reported a $0.03 per share loss for the third quarter of 1998, and admitted, among other things, that: (1) revenues for the first and second quarters were overstated and expenses were under-reported; and (2) it was forced to make adjustments to the third quarter financials resulting in a charge of $700,000, or just under $0.05 per share, for the accounting irregularities in the first and second quarters. During the Class Period, Vision 21 common stock traded as high as $11.75 per share. In the days following the November 6, 1998 announcement, the price of Vision 21 common stock plunged to $4.00 per share, losing over 60% of its value from its high during the Class Period.