By the Order entered on October 3, 2000, U.S. District Judge Daniel B. Sparr granted the motion to dismiss the action with prejudice without costs to any party upon finality of the Judgment in the State Action on September 30, 2000.
According to the Notice of Settlement, the proposed Settlement settles the state and federal actions, and creates a fund in the amount of $6.0 million in cash, any interest that accrues on the fund prior to distribution, and 1,300,000 shares of EFTC common stock.
The complaint charges EFTC and certain officers and directors of the Company during the relevant time period with issuing a series of materially false and misleading statements concerning the Company's business, operations and growth prospects. Because of the issuance of a series of false and misleading statements, the price of common stock was artificially inflated during the Class Period. Prior to the disclosure of the adverse facts described above, certain officers and directors of the Company sold significant amounts of EFTC common stock to the unsuspecting investing public. These sales allowed these insiders and the Company to reap proceeds of $42 million from the sale of their shares.