According to the latest docket posted, on August 6, 2001 the court gave an Order and Final Judgment. Plaintiffs' counsel are awarded the sum of $3, 916,778 in fees which the sum the Court finds to be fair and reasonable, and all $311,578 in reimbursement of expenses, which shall be paid to plaintiffs' co-lead counsel. The case is closed.
By the Notice of Pendency of Class Actions, the settlement fund was in the amount of $11,835,000. On December 3, 1997, Molten Metal and several of its affiliated companies filed in the United States Bankruptcy Court for the District of Massachusetts a petition for reorganization under Section 301 of the Bankruptcy Code.
As reported by the Company’s FORM 10-Q/A for the quarterly period ended September 30, 1997, in February and March 1997, purchasers of the Company's common stock filed five purported class action suits against the Company and certain of its present and former directors and executive officers in the United States District Court for the District of Massachusetts. These cases have been consolidated and on October 30, 1997, the plaintiffs filed a consolidated complaint. The consolidated complaint variously alleges that defendants made false and misleading statements and disseminated financial statements not prepared in accordance with generally accepted accounting principles, in violation of federal securities laws and state law, in order to enhance the value of the Company's common stock and to enable the Company to issue securities and the individual defendants to sell shares of the Company's common stock at inflated prices. The suit seeks compensatory damages for unspecified alleged losses during the alleged class period, which extends from March 28, 1995 through October 18, 1996.
The original complaint alleges a fraudulent scheme and deceptive course of business that caused purchasers of Molten Metal common stock throughout the period of March 28, 1995 through May 27, 1997 to purchase the stock at an artificially inflated price. The complaint charges that the defendants disseminated materially false and misleading statements and omissions regarding the nature, utility and cost of its products, the company's commercial ventures and its relation with governmental agencies. These misrepresentations caused an artificial inflation of stock prices during the class period as well as a resulting drop in stock prices when the truth about the company was revealed.