On March 11, 2003, the Court entered the Order granting the motion for distribution of class settlement fund. Earlier, on October 26, 2001, the Court entered the Order and Final Judgment by U.S. District Judge Gerard E. Lynch. The settlement was approved as fair, reasonable and adequate, and the complaint was dismissed without prejudice and without costs. Plaintiffs' Counsel was awarded the sum of $5,000,000 in fees and $53,789 in reimbursement of expenses. The case was closed. According to Caribiner International, Inc.’s Form 10-Q for the quarterly period ended September 30, 2001, the Company recorded a settlement amount of $15.0 million paid entirely by the Company's insurance carrier.
The complaint charges Caribiner International of misleading and deceiving its public investors by falsely representing the business impact and success of at least five acquisitions intended to mask internal problems and the sale by insiders of millions of dollars of Caribiner stock. Over a two year period the Company inflated its stock price by disguising the true impact of multiple acquisitions it was unprepared to properly supervise and manage. Once the truth became clear and Caribiner could not integrate the Company's new holdings, its stock price plummeted from more than $27.50 to a current price of approximately $6 a share. The complaint further alleges executives of Caribiner sought to misrepresent to the investment community its ability to manage and capably compliment each acquisition, a fact management was well aware of, but sought instead to communicate a different picture of events.