According to the docket dated March 11, 2005, on April 23, 2004, the Court entered the Order and Judgment approving the settlement, and awarding Lead Counsel fees in the amount of $ 680,833 (33 1/3%) plus interest from the time the Settlement Fund and disbursements of $ 70,545.54 paid from the Settlement Fund. Class representative Lorraine Padgett was awarded reimbursement of $4,000 and plaintiff Allain Roy was awarded reimbursement of $ 4,000 paid from the Settlement Fund in accord with the terms of the Stipulation and the Final Judgment.
By the Notice of Pendency and Proposed Settlement of Class Action and Settlement Hearing dated February 25, 2004, the proposed settlement is in the amount of $2,042,500 in cash. A hearing will be held on April 21, 2004 to consider: (1) whether the Settlement should be approved by the Court as fair, reasonable and adequate; (2) whether the Action should be dismissed on the merits with prejudice, as set forth in the Stipulation of Settlement (the “Stipulation”) dated February 3, 2004, on file with the Court; (3) whether the proposed Distribution Plan should be approved; (4) whether the Court should approve the application of Class Counsel for the payment of attorneys’ fees and reimbursement of costs and expenses, as well as reimbursement of expenses for certain lead plaintiffs; and (5) whether the Notice should be approved as fair.
The original complaint alleges that certain officers and directors of the Company violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by, among other things, misrepresenting and/or omitting material information concerning dELiA*s business, revenues, and earnings, were poised to continue to grow at record levels, while failing to disclose negative trends known by the defendants to exist, or recklessly disregarded by then, such as the fact that dELiA*s had been experiencing softer response rates on catalogs mailed since the beginning of 1998. These statements cause dELiA*'s common stock price to be artificially inflated during the Class Period.