According to the Company’s Form 10-KA For The Fiscal Year Ended December 31, 2001, the settlement amount of $5.8 million plus accrued interest since June 2001 was paid by the Company's insurance carrier.
On November 9, 2001, U.S. District Judge Ronald L. Buckwalter dismissed the complaint with prejudice & without costs as against the defendants. Plaintiffs' counsel was awarded attorneys' fees in the amount of $1,916,666.67 of the gross settlement fund, and reimbursement expenses in the amount of $268,272.41. The case was closed. On July 15, 2001, Talk America Holdings, Inc., formerly Tel-Save Holdings, filed a Stipulation of Settlement.
According to a Business Wires article, dated June 18, 1998, the Complaint alleges that Tel-Save and certain officers/directors violated federal securities laws by, among other things, issuing false and misleading statements to the investing public regarding Tel-Save's business, operations, financial condition and performance. These false and misleading representations primarily related to the defendants' failure to disclose the true nature of the Company's transactions with Group Long Distance, Inc., which artificially inflated Tel-Save's reported income. The Complaint further alleges that the defendants' misrepresentations artificially inflated the price of Tel- Save's common stock during the class period.