By the Final Judgment dated August 12, 1999, U.S. District Judge Alvin K. Hellerstein certified the Settlement Class for purposes of settlement. Plaintiff's counsel is awarded attorneys' fees in the amount of $1,000,000. Reimbursement of expenses in the amount of $30,186.73, are also awarded to plaintiff’s counsel. Payment of such fees and expenses shall be made out of the Settlement Fund by the Escrow Agent. According to Command Systems’ Form 10-K For the year ended December 31, 1999, class members became entitled to share pro rata in the $5.75 million cash settlement fund, plus interest, minus approved attorneys' fees and related expenses. The case is closed.
In a Press Release dated May 6, 1998, the complaint alleges that defendants violated the federal securities laws (Sections 11, 12(a)(2) and 15 of the Securities Exchange Act of 1933) for making material misrepresentations in the Registration Statement and Prospectus that was filed with the SEC and distributed to investors. Defendants, knowing that the business of providing year 2000 services is one of the most closely
followed by investors, made false and misleading statements regarding its
business and strategy so as to attract as much interest as possible in its IPO.