According to the docket, on March 29, 2001, the Court entered the Order by Judge Clarence Cooper dismissing the action without costs and without prejudice. The case was terminated. On April 6, 2001, a joint motion to reopen the case for proceedings was filed. After the Stipulation and agreement of compromise and settlement was filed on July 26, 2001, Judge Clarence Cooper granted the joint motion to reopen the case, and on October 24, 2001, the Court entered the Final Judgment and Bar Order by U.S. District Judge Clarence Cooper certifying the class and approving the settlement. The action was dismissed with prejudice. The Co-Lead Counsel was awarded attorneys' fees in the amount of 30% of the Settlement Amount (or $1,530,000.00) and reimbursement of expenses of $56,620.00 paid from the Settlement Fund.
The original Complaint charges that WorldPort and its two highest officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The Complaint alleges that defendants issued a series of materially false and misleading statements regarding an equity transaction the Company entered with Heico Companies, LLC. In particular, the defendants failed to reveal that the sale of super-voting stock to Heico, and effective transfer of corporate control to Heico, without a vote of shareholders, violated Nasdaq regulations and jeopardized the continued listing of WorldPort shares on Nasdaq.