According to the Form 10-K for fiscal year ended July 31, 2002, on July 17, 2001, the company entered into a Settlement Agreement with the two named Plaintiffs Terry Kennedy and Merle Brewer and their legal counsel. In the settlement the company agreed to give each named Plaintiff stock equivalent to a value of $2,000, and the Plaintiffs would have a thirty-day option to sell that stock back to the company for $2,000. The value of the stock would be based upon the last listed trade value as listed on NASDAQ. Further, any shareholders who tendered their stock in the Tender Offer in 1997 will be notified that they will have the opportunity to buy back stock of the company at a price of $120.00 per share (or $0.30 per share at the pre-split value) the value at which the stock was sold in the Tender. In regard to those who sold stock as part of the Reverse Split in 1998, the company will allow those shareholders to buy back in also at the same rate i.e. $120.00 per share (or $0.30 of the pre-split value) if they so desire. All terms of the Settlement Agreement were complied with, and a total of six shareholders elected to purchase Lincoln stock (for a total of six shares) as part of the settlement. On July 22, 2002, the Court entered its Order dismissing the action with prejudice. The two Plaintiffs sold their stock back to the Company.
The complaint alleges that Lincoln International Corporation and its directors and officers violated federal security laws (10(b), 13(e) and 20(a) of the Securities Exchange Act of 1934) by misrepresenting or failing to disclose material information about the status of Lincoln International Corporation's assets. As a result of defendants' false and misleading statements and omissions, the defendants were able to purchase stock in Lincoln International for less than its fair value. The class action was filed on behalf of all who were shareholders of Lincoln International Corporation until May of 1997 and who sold their Lincoln stock in response to LTG's tender offer, or shareholders that were forced out of their Lincoln International stock due to the reverse stock split effected by Lincoln in December of 1997.