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Case Status:    SETTLED
On or around 09/05/2006 (Date of order of final judgment)

Filing Date: August 18, 1999

On September 5, 2006, the Court entered the Memorandum Opinion and Final Judgment approving the settlement of $3 million with the remaining defendants, Morgan Stanley (f/k/a/ Morgan Stanley Dean Witter & Co.), The Morgan Stanley Leveraged Equity Fund II, L.P., Morgan Stanley Capital Partners III, L.P., Morgan Stanley Capital Investors, L.P., and MSCP III 892 Investors, L.P. The complaint is dismissed with prejudice.

According to a press release dated May 15, 2006, pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for the Western District of Kentucky at Louisville, the case known as In re ARM Financial Group, Inc. Securities Litigation, Civil Action No. 3:99-CV-539-H, has been certified as a class action and that an additional settlement with the remaining defendants has been proposed. A hearing will be held before the Honorable John G. Heyburn II in the United States Courthouse, 601 West Broadway, Louisville, Kentucky 40202, at 10:00 a.m., on August 30, 2006 to determine whether the proposed settlement in the amount of $3 million should be approved by the Court as fair, reasonable, and adequate, and to consider the application of Plaintiffs' counsel for attorneys' fees and reimbursement of expenses.

According to the latest docket posted, on July 14, 2005, the Court entered the Order and Final Judgment approving the partial settlement and dismissing the case against the settling, individual defendants. The case continued against remaining defendants Morgan Stanley Dean Witter & Co., Morgan Stanley Leveraged Equity Fund II, L.P., Morgan Stanley Capital Partners III, L.P., Morgan Stanley Capital Investors, L.P., and MSCP III 892 Investors, L.P. On October 3, 2005, the defendants filed two motions for summary judgment. On November 23, 2005, the Court entered the Order remanding the motions for summary judgment, allowing the motions to be reinstated if the settlement is consummated. On February 17, 2006, the plaintiff filed a motion for settlement.

In a press release dated April 13, 2005, pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for the Western District of Kentucky at Louisville, the case known as In re ARM Financial Group, Inc. Securities Litigation, Civil Action No. 3:99-CV-539-H, has been certified as a class action and that a settlement with certain Defendants has been proposed. A hearing will be held before the Honorable John G. Heyburn II on July 12, 2005 to determine whether the proposed partial settlement in the amount of $1 million should be approved by the Court as fair, reasonable, and adequate, and to consider the application of Plaintiffs' counsel for attorneys' fees and reimbursement of expenses.

As summarized by the co-lead counsel’s website, additional cases have been filed on behalf of investors. On January 4, 2000, the Court consolidated the various cases under the caption In re: Arm Financial Group, Inc. Securities Litigation, Civil Action No. 3:99-CV-539-H and appointed lead plaintiff and co-lead counsel. Plaintiffs filed an amended and consolidated complaint on April 17, 2000 and a second consolidated and amended complaint on September 15, 2000. Defendants filed motions to dismiss on January 18, 2001. On April 24, 2001, plaintiffs filed their oppositions to the motions to dismiss. On June 8, 2001, before a ruling on the pending motions to dismiss had been issued, plaintiffs filed a third consolidated amended complaint, the operative complaint in this action. On July 31, 2001, defendants filed motions to dismiss the new complaint. On October 26, 2001, plaintiffs filed opposed the motions to dismiss. Defendants filed replies in support of their motions to dismiss on February 8, 2002. On July 18, 2002, the Court granted in part and denied in part the motion to dismiss, allowing the case to continue under surviving claims into the discovery phase. The Court certified the litigation to proceed as a class action on November 14, 2003. On February 24, 2004, the Court granted plaintiffs' motion to extend the class period. On January 28, 2005, a stipulation and agreement of settlement was filed to settle the action with individual defendants.

The lawsuit charges ARM and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants issued a series of materially false and misleading statements regarding the Company's financial condition and results of operations. These false and misleading statements caused the price of ARM's stock to be artificially inflated. Indeed, following the disclosure of ARM's true financial condition the stock price has collapsed to as low as $0.16 and no longer trades on the New York Stock Exchange.

NOTE: On December 20, 1999, ARM filed for bankruptcy protection under the Federal bankruptcy laws.

COMPANY INFORMATION:

Sector: Financial
Industry: Insurance (Life)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ARM
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: W.D. Kentucky
DOCKET #: 99-CV-539
JUDGE: Hon. John G. Heyburn II
DATE FILED: 08/18/1999
CLASS PERIOD START: 10/27/1998
CLASS PERIOD END: 08/03/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Arnzen, Parry & Wentz, P.S.C.
    128 E. Second Street, P.O. Box 472, Arnzen, Parry & Wentz, P.S.C. , KY 41012-0472
    606.431.6100 ·
  2. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
No Document Title Filing Date
COURT: W.D. Kentucky
DOCKET #: 99-CV-539
JUDGE: Hon. John G. Heyburn II
DATE FILED: 06/08/2001
CLASS PERIOD START: 02/10/1998
CLASS PERIOD END: 08/03/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  2. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  3. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date