According to the docket dated February 06, 2002, the court issued the Order and Final Judgment dated June 29, 2001 approving the terms of the settlement and closing the case.
On September 10, 1998, the Company filed a motion to dismiss the lawsuit. On or about November 15, 1999, the court denied the motion to dismiss. According to the firm's 10-Q filing dated May 16, 2001, in March 2001 the Company agreed to the settlement of three class action lawsuits which alleged violations of the federal securities laws during the period from September 19, 1996 through April 21, 1997. This settlement remains subject to court approval. In connection with this settlement the Company has recorded a charge for $1 million in the first quarter of fiscal 2001.
The original securities class action complaint charges the defendants with violations of the federal securities laws (Sections 11, 12 and 15 of the Exchange Act of 1933), by among other things, misrepresenting and/or omitting material information concerning APAC's contractual arrangement with United Parcel Service of America, Inc. ("UPS"), thereby bringing APAC common shares to market at artificially inflated prices. In addition, plaintiffs allege that Schwartz, an "insider" and control person of APAC, and his family reaped many millions of dollars by improperly selling shares of APAC common stock at artificially inflated prices while in the possession of materially adverse facts.