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Case Status:    SETTLED
On or around 04/03/2002 (Date of order of final judgment)

Filing Date: August 26, 1998

According to the Company’s Form 10-Q for the quarterly period ended June 30, 2002, on April 2, 2002, the Court granted final approval of the Stipulation of Settlement and Plan of Allocation of Settlement Proceeds, which was funded by the Company's insurer and which settled all claims with prejudice, and entered a Final Judgment and Order of Dismissal with Prejudice.

As reported in an earlier SEC filing, the Company's Form 10-K for the fiscal year ended December 31, 2001, the Company filed a motion to dismiss for failure to state a claim, which was granted, with prejudice, by the District Court on August 5, 1999. On appeal, the Fifth Circuit reversed the District Court's denial of leave to amend and remanded the case on January 9, 2001 to allow Plaintiffs leave to file an amended complaint in March of 2001. The amended complaint sought relief under the 1933 Act claims only. Without conceding the facts that formed the basis of Plaintiffs' claims, the Company entered into a stipulation of settlement on January 26, 2002, settling all claims, with prejudice, for the sum of $2 million, the entirety of which will be paid by the Company's insurer. On February 19, 2002 the District Court entered its preliminary approval and set the matter for final settlement hearing on April 2, 2002, at which time the Court will determine whether the proposed settlement is fair to the settlement class and should be approved by the Court.

The original complaint alleges that, at all times during the Class Period, the price of Schlotzsky's common stock was artificially inflated because Schlotzsky's was reporting false and overstated net income. When Schlotzsky's reported that it would restate and thereby reduce the amount of net income it had reported, the price of Schlotzsky's common stock collapsed in price to $15.00 per share. However, before the restatement and before Schlotzsky's collapsed in price, Schlotzsky's and several of its officers, directors and insiders sold over 2.3 million shares for over $42.3 million, thereby reaping a benefit from their false statements.

The lawsuit has been filed on behalf of all purchasers of Schlotzsky's common stock during the class period, including all purchasers in the September 24, 1997 secondary offering.

COMPANY INFORMATION:

Sector: Services
Industry: Restaurants
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: BUNZ
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: W.D. Texas
DOCKET #: 98-CV-550
JUDGE: Hon. James R. Nowlin
DATE FILED: 08/26/1998
CLASS PERIOD START: 04/29/1997
CLASS PERIOD END: 04/05/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bingham & Lea, P.C.
    333 Convent Street, Bingham & Lea, P.C., TX 78205-1348
    210.224.1819 ·
  2. Law Offices of Steven E. Cauley, P.A. (Little Rock)
    2200 Rodney Parham Road Suite 218, Law Offices of Steven E. Cauley, P.A. (Little Rock), AR 72212
    501.312.8500 ·
  3. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
No Document Title Filing Date
COURT: W.D. Texas
DOCKET #: 98-CV-550
JUDGE: Hon. James R. Nowlin
DATE FILED: 03/05/2001
CLASS PERIOD START: 04/29/1997
CLASS PERIOD END: 04/05/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (Former New York)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (Former New York), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
  2. Bingham & Lea, P.C.
    333 Convent Street, Bingham & Lea, P.C., TX 78205-1348
    210.224.1819 ·
  3. Cauley Geller Bowman & Coates, LLP (Little Rock, AR)
    11311 Arcade Drive, Suite 200, Cauley Geller Bowman & Coates, LLP (Little Rock, AR), AR 72212
    ·
  4. Goode, Casseb & Jones
    One Riverwalk Pl., #1700, 700 N. St. Mary's St., Goode, Casseb & Jones, TX 78205
    512.225.6030 ·
  5. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
No Document Title Filing Date