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Case Status:    SETTLED
On or around 11/25/2002 (Date of order of final judgment)

Filing Date: June 05, 1998

According to the closing Order, dated in the Fall of 2001 from U.S. District Judge Lynn Adelman of the U.S. District Court in Milwaukee, more than $10 million is being paid to former shareholders of Harnischfeger Industries Inc. to settle an investment fraud lawsuit. The settlement agreement,said Harnischfeger's insurer, National Union, will pay $9.15 million as part of the settlement. An additional $1 million will be paid by PricewaterhouseCoopers, Harnischfeger's auditing firm, the settlement document says. The money will be split among an undetermined number of former Harnischfeger shareholders who are part of the class-action lawsuit.

The suit alleges that Harnischfeger artificially inflated its stock price by overstating profits from long-term projects at Indonesian papermaking plants. The suit also claims that investors lost millions when Harnischfeger's stock plummeted after the truth about its financial condition was revealed. The suit alleges that PricewaterhouseCoopers knew as early as Sept. 30, 1997, that Harnischfeger's costs for the first Indonesian projects were greater than anticipated. The lawsuit also alleges that PricewaterhouseCoopers then "recklessly accepted" revisions Harnischfeger made to cost estimates. According to the settlement, PricewaterhouseCoopers and Harnischfeger denied any wrongdoing.However, PricewaterhouseCoopers and Harnischfeger, without acknowledging any fault, "have concluded that further defense of the actions would be protracted and burdensome and expensive and therefore are willing to enter into a settlement," the settlement agreement says. Also, Great Neck Capital's attorneys have determined "that this settlement would be fair, reasonable and adequate and in the best interests of the class," the agreement says.

The original complaint alleges the Company and certain of its senior executives were named as defendants in three purported class action suits, entitled Great Neck Capital Appreciation Investment Partnership, L.P. v. Jeffery T. Grade, et al., C. William Carter v. Harnischfeger Industries, Inc. et al., and Norman Ellison v. Jeffery T. Grade, et al., filed on June 5, 1998, June 11, 1998 and July 21, 1998, respectively, in the United States District Court for the Eastern District of Wisconsin. These actions, which were consolidated, seek damages in an unspecified amount on behalf of an alleged class of purchasers of the Company's common stock, based principally on allegations that the Company's disclosures with respect to the Indonesian contracts of Beloit violated the federal securities laws.

On June 7, 1999, Harnischfeger Industries, Inc. and its domestic
operating subsidiaries (collectively, the "Debtors") filed voluntary
petitions for reorganization under Chapter 11 of the U.S. Bankruptcy
Code in the United States Bankruptcy Court for the District of Delaware
and orders for relief were entered.

COMPANY INFORMATION:

Sector: Capital Goods
Industry: Constr. & Agric. Machinery
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: HPH
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: E.D. Wisconsin
DOCKET #: 98-CV-524
JUDGE: Hon. Lynn Adelman
DATE FILED: 06/05/1998
CLASS PERIOD START: 11/20/1997
CLASS PERIOD END: 04/27/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. O'Neil, Cannon & Hollman, S.C.
    111 E. Wisconsin Ave, 14th Floor, O'Neil, Cannon & Hollman, S.C., WI 53202
    414.276.5000 · usam@bignet.net
  2. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
No Document Title Filing Date
COURT: E.D. Wisconsin
DOCKET #: 98-CV-524
JUDGE: Hon. Lynn Adelman
DATE FILED: 12/14/1998
CLASS PERIOD START: 11/20/1997
CLASS PERIOD END: 04/27/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berman DeValerio Pease Tabacco Burt & Pucillo (MA)
    One Liberty Square, Berman DeValerio Pease Tabacco Burt & Pucillo (MA), MA 2109
    617.542.8300 617.230.0903 · info@bermanesq.com
  2. O'Neil, Cannon & Hollman, S.C.
    111 E. Wisconsin Ave, 14th Floor, O'Neil, Cannon & Hollman, S.C., WI 53202
    414.276.5000 · usam@bignet.net
  3. Wechsler, Harwood, Halebian & Feffer, LLP
    488 Madison Avenue, Wechsler, Harwood, Halebian & Feffer, LLP, NY
    212.935.7400 10022 ·
No Document Title Filing Date