According to the docket, on September 30, 2004, the Court entered the Order and Final Judgment approving the proposed settlement. Plaintiffs' counsel was awarded 33 1/3% of the Settlement Fund in fees, and $477,336.51 in reimbursement of expenses. Earlier, the Stipulation and Agreement of Settlement was filed on July 27, 2005. The proposed settlement fund was in the amount of $10,000,000.
In a press release dated July 20, 2004, Theragenics Corporation settled this securities class action lawsuit. The settlement is contingent upon Court approval and notice to the Class. According to the aggreement, that the settlement of the class action lawsuit will require no financial contribution by the company. The derivative lawsuit, which was filed in conjunction with the class action lawsuit, but stayed by agreement of the parties, is still pending. According to the same press release, the company stated that the derivative lawsuit "is currently being reevaluated in light of the settlement of the securities class action lawsuit, and we'll report once we have any further news, as appropriate."
The original complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5) by, among other things: issuing false misleading statements regarding Theragenics' financial condition as well as its present and future business prospects. Because of the issuance of a series of false and misleading statements, the price of Theragenics common stock was artificially inflated during the Class Period. Prior to the disclosure of the adverse facts described above, certain defendants and insiders made over $5.6 million by selling thousands of shares of Theragenics stock to the unsuspecting investing public at artificially high prices.
On August 21, 2000, according to the Form 10-K for the fiscal year ended December 31, 2003, the plaintiffs filed a second amended complaint and on March 30, 2001, the Court denied the defendant’s motion to dismiss the plaintiffs’ second amended complaint. The Court also denied the Company’s motion for reconsideration. Subsequently, the Court certified the class and the parties commenced discovery. Discovery in the case is now complete. The Company filed a motion for summary judgment on September 30, 2003 in which it asks the Court to find that there is no genuine issue as to any material fact in the case, and therefore, the case must be dismissed. The plaintiffs have filed a brief in opposition, and the motion is currently pending before the Court.
Further, according to the Form 10-K, the actions were consolidated into a single action. On May 14, 1999 a stockholder of the Company filed a derivative complaint in the Delaware Court of Chancery purportedly on behalf of the Company, alleging that certain directors breached their fiduciary duties by engaging in the conduct that is alleged in the consolidated federal class action complaint. The derivative action has been stayed by the agreement of the parties. On July 19, 2000, the Court granted the Company’s motion to dismiss the consolidated federal class action complaint for failure to state a claim against the Company, and granted the plaintiffs leave to amend their complaint. On July 20, 2004, Theragenics Corporation announced that it settled its securities class action lawsuit.