According to the docket, on October 22, 1998, the Court entered the Order by U.S. District Judge Carlos R. Moreno granting the motions for the final approval of the stipulation of settlement and the plan of allocation. The Court further entered that day the Final Judgment and Order of dismissal, and the case was terminated. The Notice of Pendency and Proposed Settlement announced that the settlement amount reached was in the amount of $6,750,000.
As reported by the firm's Form 10-K for the fiscal year ended December 31, 1998, a settlement has been reached with respect to this lawsuit and has
been approved by the court in which the action was pending. Under
the settlement, the claims against VCA and all other defendants will be
dismissed without presumption or admission of any liability or wrongdoing. The
full amount of the settlement and associated legal costs have either been
previously reserved or will be covered by VCA's insurance carriers.
The complaint charges VCA and certain of its officers and directors with violations of the federal securities laws. VCA is an operator of animal hospitals and veterinary diagnostic laboratories which also sells dog and cat food. The complaint alleges that during the Class Period, defendants issued false statements about VCA's animal hospitals, diagnostic laboratories and pet food operations, VCA's success in integrating several acquisitions, including the operating efficiencies and cost savings being achieved thereby and VCA's future earnings per share ("EPS") growth, which increased VCA stock to an all-time high of $32-3/4 per share in April 1996.