On October 6, 1999, the Laser Technology, Inc. announced that it had entered into an agreement in principle for the settlement of all the actions. On December 10, 1999, a Stipulation of Settlement was executed by the parties and filed with the Court. On October 13, 2000, the Court issued its Final Judgment and Order of Dismissal With Prejudice in the action. As a provision of the Final Judgment, the Court ordered the Company to issue 475,000 shares of our common stock and pay $850,000 in the settlement of the action. Following the appropriate hearing, the Court found that the aggregate settlement amount and other terms of the settlement reflected a good faith settlement of the actions. The Company reached an agreement with its insurance carrier whereby $740,000 of the cash portion of the settlement was paid by the carrier into the settlement escrow account. The remaining $110,000 in cash was paid into the settlement escrow account by the Company and certain individuals involved in the settlement. The 475,000 shares were also issued and delivered to the settlement escrow account.
The complaint charges that defendants violated Generally Accepted Accounting Principles, and thereby inflated reported results. The complaint further alleges that the defendants' false and misleading statements artificially inflated the price of Laser Technology, Inc. common stock during the Class Period. On December 23, 1998, Laser Technology surprised investors by announcing that the Company's auditors had resigned and, in addition, withdrawn their opinions on Laser Technology's financial statements for the fiscal years ending September 30, 1997, 1996, 1995, 1994 and 1993. The American Stock Exchange halted trading of Laser stock prior to the opening of the market on December 23, 1998. The stock has still not resumed trading.
Five additional securities class actions and one stockholder’s derivative suit were filed against the Company and certain of its former and present officers and directors. All cases were filed in the United States District Court for the District of Colorado and were consolidated.