On June 29, 2006, the Court entered the Order and Final Judgment approving the settlement of $6 million. That day, the Court further entered the Orders awarding plaintiffs’ counsel’s attorneys’ fees and expenses as well as the plan of allocation. On August 28, 2006, the Court entered the Order amending the amount of the reimbursement of expenses.
As summarized by the latest docket posted, on August 29, 2003, a Corrected Consolidated Amended Class Action Complaint was filed against the defendants, and the defendants responded by filing motions to dismiss the Corrected Consolidated Amended Class Action Complaint. On August 18, 2004, the Court entered the Memorandum and Order signed by U.S. District Judge Thomas N. O’Neill Jr. denying the motion to dismiss as to certain claims and granting the motion to dismiss with prejudice as to the remainder of the claims. On September 29, 2004, the Court entered the Order denying the defendants’ motion for partial reconsideration of the August 18, 2004 Order. On June 30, 2005, the defendants filed a motion for summary judgment, and on October 18, 2005, Judge Thomas N. O’Neill Jr. denied the defendants’ motion for summary judgment. On November 9, 2005, the Court entered the Memorandum and Order granting the plaintiffs' motion for class certification. A settlement hearing is scheduled for June 29, 2006 at 10:00 am before Honorable Thomas N. O’Neill Jr.
According to the closing Order, dated 12/23/2002 from U.S. District Judge Thomas N. O'Neill, Jr. of the United States District Court for the Eastern District of Pennsylvania, in 1998, plaintiffs filed their claim for securities violations against the corporation and others. Various claims were consolidated and then placed in the civil suspense docket in June 1999 pending the outcome of the corporation's bankruptcy proceeding. The action was removed from the suspense docket in December 2001 and the officers were named as defendants in a consolidated complaint filed in February 2002. The court granted the officers' motion to dismiss, finding that the claim against them was barred by the applicable three-year limitations period for securities violations. The court held that the new limitations period enacted as of July 30, 2002, did not apply because the action against the three officers was commenced before the effective date of the statute. The court noted that the last possible violation that could have been committed by the officers occurred on January 14, 1999, and thus plaintiffs needed to file their action against the officers no later than January 14, 2002. The court held that the bankruptcy stay did not toll the limitations period. The court granted the officers' motion to dismiss.
The original complaint alleges that defendants violated the federal securities laws (Sections 10(b) and 20(a) of the Securities Exchange Act of 1934) by misrepresenting or failing to disclose material information about Loewen Group's results of operations, financial condition and weaknesses in its financial internal controls regarding the Company's failure to successfully integrate companies acquired by it during the Class Period. As a result of defendants' false and misleading statements and omissions, the price of Loewen Group's stock was artificially inflated during the Class Period, such that persons who purchased or otherwise acquired common stock during the Class Period were damaged by overpaying for the stock.