According to the latest docket posted, on December 12, 2000, the Court entered the Order and Final Judgment signed by U.S. District Judge John C. Lifland. The Court approved the settlement and awarded fees and expenses to the counsel for the plaintiffs and the class. The case is closed.
Pursuant to the Settlement described in the Notice Of Pendency Of Class Action, the proposed settlement amount is $8,000,000 in cash. A hearing will be held on December 7, 2000, to determine whether a proposed settlement of the above-captioned action as set forth in the Stipulation and Agreement of Settlement dated September 15, 2000, is fair, reasonable and adequate and to consider the application of plaintiffs' counsel for attorneys' fees and reimbursement of expenses.
As reported by the Company’s FORM 10-Q for the quarterly period ended June 24, 2000, in September and October 1998, following the commencement of the seizure action by the FDA against Steris on September 10, 1998, a number of substantially
similar class action complaints asserting claims under the federal securities
laws were filed in federal court in the District of New Jersey against the
Company and certain of its officers and directors. On December 21, 1998, the
court entered an order consolidating the actions, appointing lead plaintiffs and
approving selection of lead and liaison counsel. On or about March 29, 1999,
lead plaintiffs filed a consolidated and amended class action complaint (the
Complaint), naming as defendants the Company, its directors at the time of the
Company's April 9, 1998 initial public offering (the Offering), and three of the
underwriters of the Offering. In May 1999, the Company and the other defendants in this action filed a motion to dismiss the Complaint. In March 2000, and prior to any decision on the motion to dismiss, plaintiffs and defendants entered into a Memorandum of Understanding (MOU) to settle the actions.
The original action charges that defendants violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933. Specifically, it is alleged that the Registration Statement and Prospectus issued in connection with the IPO contained material misstatements and omissions of material facts concerning the Company's compliance with FDA rules and regulations in its manufacturing process. On Sept. 10, 1998, Schein announced that the FDA filed a seizure action against all products manufactured by its Steris Laboratories, Inc. plant in Phoenix. In response to this news, the price of Schein common stock plummeted 53% in one day, from $23.75 to close at $11.6875 on Sept. 11, 1998.