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Case Status:    SETTLED
On or around 04/17/2003 (Date of order of final judgment)

Filing Date: October 29, 1999

According to the docket, on January 27, 2003, a Stipulation and Agreement of Settlement was filed, and on January 31, 2003, the Court entered the Order preliminarily approving the stipulation and the settlement. A hearing was set for April 14, 2003. At the hearing, the Court approved the $5.6 million proposed settlement as fair, reasonable and adequate. The Court approved fees and costs in the amount of $1,866.666.60 plus $122,891.97 in costs, and the Final order was signed.

As summarized by the Company’s FORM 10-K For The Fiscal Year Ended December 31, 2002, in November 1999, the Company received notice that it had been named in a lawsuit filed in the United States District Court for the Eastern District of New York, seeking certification as a class action and alleging violations of the federal securities laws in connection with the Company’s initial public offering in 1996 and its reports subsequently filed with the Securities and Exchange Commission. The complaint alleges that the scope of the violations alleged in the consumer lawsuits and regulatory actions brought in or around 1999 indicate a pervasive pattern of action and risk that should have been more thoroughly disclosed to investors in the Company’s common stock. In May 2000, the Court consolidated this case and several other lawsuits that purportedly contain the same or similar allegations against the Company and in August 2000 plaintiffs filed their Consolidated Amended Complaint. In October 2000, the Company filed a motion to dismiss the Complaint in its entirety, which was opposed by plaintiffs in November 2000, and denied by the Court in September 2001. The Company reached an agreement in principal with plaintiffs' counsel and its insurer to settle the action on a class-wide basis in or about August 2002 and executed a settlement agreement in January 2003 (pursuant to which the Company denied all wrongdoing). The settlement has been preliminarily approved by the Court and a fairness hearing has been scheduled for April 2003.

The original complaint charges each of the defendants, including the principal underwriters of Delta’s IPO, Natwest Securities Limited, Prudential Securities Incorporated, and U.S. Bancorp Piper Jaffray, Inc., with violations of Sections 11 and 15 of the Securities Act of 1933 . Additionally, the complaint charges Delta Financial and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. In particular, the complaint alleges that the Registration Statement and Prospectus issued in connection with the Company's IPO contained false and misleading statements concerning the Company's questionable and improper sales practices, allowing the Company to raise over $75,000,000 in proceeds from the IPO.

COMPANY INFORMATION:

Sector: Financial
Industry: Consumer Financial Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: DFC
Company Market: New York SE
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: E.D. New York
DOCKET #: 99-CV-07033
JUDGE: Hon. Denis R. Hurley
DATE FILED: 10/29/1999
CLASS PERIOD START: 10/31/1996
CLASS PERIOD END: 08/18/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. 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
  3. Strauss & Troy
    The Federal Reserve Building, 150 East Fourth Street, Strauss & Troy, OH 45202-4018
    513.621.2120 513.241.8250 · wlwoods@strauss-troy.com
No Document Title Filing Date
COURT: E.D. New York
DOCKET #: 99-CV-07033
JUDGE: Hon. Denis R. Hurley
DATE FILED: 09/07/2000
CLASS PERIOD START: 10/31/1996
CLASS PERIOD END: 08/19/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  3. Shapiro Haber & Urmy LLP (Boston)
    75 State Street, Shapiro Haber & Urmy LLP (Boston), MA 02109
    617.439.3939 617.439.0134 · info@shulaw.com
  4. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  5. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
No Document Title Filing Date