According to the Judgment Order, dated January 20, 2005, U.S. District Judge Thomas C. Platt approved the settlement against defendants McGladrey & Pullen, LLP and awarded fees and expenses. The plaintiff’s counsel was awarded expenses of $50,988.60 and $16,881.50 for amounts reasonably to be incurred in connection with further administration of the settlement. Earlier, on July 7, 2003, the court approved a settlement against Individual Defendants, the directors and officers.
The total of funds available for distribution, pursuant to the two settlements, was
The complaint names as defendants certain officers and directors of First Central (“Individual Defendants”) and McGladrey & Pullen, LLP, First Central’s independent auditor, in violation of Section 10(b) of the Securities and Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, as well as common law fraud
Specifically, the complaint claims defendants engaged in a scheme to inflate the financial condition of First Central and its primary operating subsidiary, First Central Insurance Company (“FCIC”). More specifically, the Defendants are allegedly charged with disseminating false and misleading financial statements, press releases and SEC filings concerning FCFC’s publicly reported revenue, assets and earnings prior to and during the Class Period which artificially inflated the price of FCFC stock.
First Central was not named as one of the defendants because on March 5, 1998, the company filed for relief on Chapter 11 of the Bankruptcy Code.