On December 28, 2000, the Court entered the Order by U.S. District Judge William G. Young granting the motion for disbursement of the settlement fund. Earlier, on September 15, 2000, Judge Young approved the settlement and awarded attorney fees and expenses. The Judge also issued a Final Judgment and Order granting the motion for attorney fees and the case was closed. The Stipulation of Settlement was initially filed on May 19, 2000, and preliminarily approved later that month. Further, according to Inso’s Form 10-K for the fiscal year ended January 31, 2001, the Company recorded a net charge to their fiscal year 2000 consolidated results in the amount of $13,451,000 in connection with the settlement agreement.
The original complaint alleges that, by issuing false and misleading statements to the public, Inso and certain corporate executives violated the federal securities laws and thereby artificially inflated the value of the Company's securities. In addition, the complaint alleges that certain insiders sold more than 1.5 million shares of Inso common stock during the Class Period at the artificially inflated prices, yielding proceeds of nearly $4 million.