According to the docket posted, on September 20, 2004, the Court issued the Order granting the motion to approve the settlements, totaling $20 million, and the plan of allocation. The Court further awarded attorneys’ fees in the amount of $5,000,000, but denied lead plaintiffs', Pugach and Salzman's, motion for expenses. On September 22, 2004, the Court entered the Final Judgment and Order as to The Goldman Sachs Group, LP; Goldman, Sachs & Co.; Morgan Stanley & Co. Inc.; Cowen & Company; and Schroeder & Co., Inc. That day, the Court also entered the Final Judgment and Order as to the two individual defendants.
In a press release dated June 25, 2004, Plaintiffs have achieved a proposed settlement in this case under the federal securities laws with The Goldman Sachs Group, L.P., certain affiliates of which were AMF's largest shareholder at the time of the IPO, and the four investment banking firms that were the managing underwriters for the IPO. The settlement amount is $12,000,000 in cash ("The Investment Bank Defendants' Settlement"). Previously, Plaintiffs achieved a proposed $8,000,000 settlement with the two Individual Defendants. (Together, these two proposed settlements are referred to as the "Settlements.") The hearing on this first settlement, originally scheduled for June 28, 2004, is adjourned until September 9, 2004 (as described below). This case was previously certified as a class action. A hearing will be held before the Honorable P. Kevin Castel in Courtroom 12C at the United States Courthouse, 500 Pearl Street, New York, New York 10007, at 10:00 a.m. September 9, 2004, to determine whether both Settlements should be approved by the Court as fair, reasonable, and adequate; to consider the proposed plan of allocation; and to consider the motion of Plaintiffs' Counsel for attorneys' fees and reimbursement of expenses, including expenses of the Lead Plaintiffs.
As reported by the Company’s FORM 10 for the quarterly period ended June 30, 2001, on April 22, 1999, a putative class action was filed in the United States District Court for the Southern District of New York by Vulcan International Corporation against AMF Bowling, The Goldman Sachs Group, L.P., Goldman, Sachs & Co., Morgan Stanley & Co. Incorporated, Cowen & Company, Schroder & Co., Inc.,and two individual defendants. The complaint has subsequently been amended to, among other things, include additional named plaintiffs. The plaintiffs, as putative class representatives for all persons who purchased Common Stock in the Company's initial public offering of Common Stock (the "Initial Public Offering") or within 25 days of the effective date of the registration statement related to the Initial Public Offering, seek, among other things, damages and/or rescission against all defendants jointly and severally pursuant to Sections 11, 12 and/or 15 of the Securities Act of 1933 based on allegedly inaccurate and misleading disclosures in connection with and following the Initial Public Offering. Management believes that the litigation is without merit and intends to defend it vigorously.