According to the docket, on May 8, 2003, the Court entered the Judgment and Order of Final Approval, approving the settlement and dismissing the case with prejudice. The Court awarded Class Counsel attorneys’ fees and expenses in the amount of $175,000 to be paid by the Settling Broker Defendants in accordance with the terms of the Stipulation. The Court further granted reimbursement awards of $1,500 to each of the Court appointed Representative Plaintiffs: Peter C. Ellison, Richard Ullman, Susan Ullman, Martin Cervenka, Darren Adams, Paul De Grasse, and Michael House. The case is closed.
By the Notice of Proposed Settlement and of Approval Hearing dated February 25, 2003, a fund of cash and securities estimated to be worth approximately $400,000 has been established, pursuant to the Stipulation and the Settlement. A hearing will be held on May 6, 2003, to consider: (1) whether the proposed Settlement, including the Plan of Allocation, should be approved by the Court as fair, reasonable and adequate; (2) whether the Litigation should be dismissed on the merits with prejudice as set forth in the Stipulation; and (3) the application of Lead Counsel for the payment of attorneys’ fees and reimbursement of costs and expenses.
Previously, according to the docket posted, the company defendant, American Image, failed to respond to the Court's requirements. The court entered a Default Judgment on May 20, 1999.
The original complaint alleges that the company sale unregistered securities, making materially false and misleading statements and otherwise manipulating the market for American Image stock, in violation of (1) Sections 12(a)(1) and 15 of the Securities Act of 1933, (2) Sections 10b and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, as well as, (3) principles of common-law fraud, and negligent misrepresentation. In addition, plaintiff is asserting claims for breach of contract on behalf of subscribers to newsletters published by Global Financial Traders.