According to the Court Order dated May 01, 2001, the setting parties will comply with all of the terms of this Order and the Stipulations. The lead Plaintiffs' request for attorneys and expenses is approved. The class counsel shall receive reimbursement of expenses in the amount of $31,489.49 and fees in the amount of $231,000. The class counsel shall not receive any portion of the interest which has accrued on these funds. The class action is dismissed with prejudice.
The original Complaint alleges that ELCOA offered and sold securities, in the form of Fixed Term and Demand Certificates, on the basis of Offering Materials, including Prospectuses, which contained false and misleading statements. As alleged in the Complaint, the Prospectuses misrepresented the financial position and results of operations of ELCOA and misrepresented or omitted material facts concerning ELCOA's use of the proceeds of the offerings and viability. The Complaint further alleges that the financial statements included in the Prospectuses, and other filings with the Securities Exchange Commission, were not prepared in conformity with generally accepted accounting principles, and contrary to the representations contained in the Offering Materials, ELCOA, at the time the Certificates were offered and sold to the investing public, was insolvent.