According to the firm's FORM 10-K for the fiscal year ended December 31, 1998, on May 27, 1997, this complaint and five other similar complaints were consolidated into a single action entitled "In re Consolidated Delivery & Logistics, Inc. Securities Litigation." On July 16, 1997, the Company and the underwriter defendants filed a motion to dismiss the complaint. In response, the plaintiffs filed an amended complaint on October 20, 1997. A motion to dismiss the amended complaint was filed by the Company and the underwriter defendants on December 15, 1997. The motion was denied on May 11, 1998. On October 7, 1998 a Stipulation and Agreement of Settlement (the "Settlement Agreement") was entered into by the parties providing for a Settlement Fund of $1.5 million. The Court issued a preliminary order approving the terms of the settlement on October 19, 1998. Mailing of Notice and Proof of Claims to class members under the terms of the Settlement Agreement was completed by October 23, 1998. The Court issuedan Order and Final Judgement formally approving the settlement on February 11, 1999. The Plaintiff's time to appeal the Order and Judgement expired on March 15, 1999 and this matter is now concluded.
The original Complaint charged CDLI, certain of its officers and directors, and the underwriters for the Company's November 21, 1995 initial public offering with violating the federal securities laws. The plaintiff claimed that defendants misrepresented and concealed material facts concerning the Company's financial results, including that the Prospectus for the Offering contained materially false and misleading financial statements, did not disclose the numerous problems confronting the Company's integration and expansion plans at the time of the Offering and failed to disclose that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles.