According to the docket, on July 23, 2003, the Court entered the Order and Final Judgment by U.S. District Judge Beverly B. Martin. The Court further entered the Order awarding attorney's fees and reimbursement of expenses to plaintiffs' counsels, and the case was terminated.
Earlier, on March 2, 2001, the defendants filed several motions to dismiss the consolidated amended complaint. On June 5, 2001, the Court entered the Order granting in part and denying in part the defendants’ motions to dismiss. Specifically, all claims relating to the allegedly false statements made to investment analysts in September 1999 were dismissed as to all defendants, and all other claims were allowed to proceed. On April 26, 2002, the Court entered the Order administratively and statistically terminating the action pending mediation. On August 9, 2002, the Court entered the Order granting the joint motion to reopen the case for purposes of obtaining court approval of the proposed class action settlement. On May 16, 2003, a Stipulation and Agreement of Settlement was filed. By the Stipulation, the proposed settlement was in the amount of $2 million.
According to FORM 10-K filed in the SEC for the fiscal year ended December 31, 2000, no class has yet been certified.
The original complaint charges Towne and certain of its officers and directors with violations of Sections 11 and 15 of the Securities Act of 1933. Specifically, the complaint alleges that the prospectus and registration statement for the Offering, declared effective on June 23, 1999, contained material omissions relating to problems that the Company had experienced immediately prior to the Offering in transferring its corporate headquarters and customer management and data processing facilities to a new location in Georgia.