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Case Status:    SETTLED
On or around 05/29/2001 (Date of order of final judgment)

Filing Date: November 17, 1998

According to the Revised Order and Judgment entered on May 29, 2001, U.S. District Judge William J. Rea approves the Settlement set forth in the Stipulation and finds that the Proposed Plan of Allocation is fair & equitable. The Court dismisses the Litigation on the merits with prejudice. Judge Rea awards Lead Counsel attorneys' fees 25% of the Settlement Fund and reimbursement of litigation expenses in the amount of $117,093.72 together with interest earned thereon. Further, according to the Company’s SEC Form 10-Q For The Quarterly Period Ended September 30, 2001, a total of 232,000 shares of common stock and warrants to purchase 200,000 shares of NetLojix's (formerly Avtel Communications) common stock at an exercise price of $8.00 per share with a term of 2 years was distributed to the claimant class members. During the three month period ended March 31, 2000, the Company recorded a charge against earnings of $998,000 and a liability relating to the settlement.

The original complaint charges AVCO and certain officers and directors of the Company with violations of the federal Securities Exchange Act of 1934, and in particular the anti-fraud provisions of Section 10(b). The Complaint alleges that defendants issued a press release on November 12, 1998 wherein they announced that its DSLink Service would provide "high-speed" Internet access over Asymmetric Digital Subscriber Line ("ADSL"). Defendants stated that ADSL is a new modem-based technology that provides a dedicated connection to the Internet that is up to 50 times faster than conventional modems. Defendants further falsely stated that the Company planned to release the new DSLink Service on a national basis. With the release of these allegedly false statements the Company's stock soared from $2.375 per share to over $36 per share on 180 times normal volume before trading in the Company's stock was halted by NASDAQ.

COMPANY INFORMATION:

Sector: Services
Industry: Communications Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: AVCO
Company Market: NASDAQ
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: C.D. California
DOCKET #: 98-CV-09236
JUDGE: Hon. William J. Rea
DATE FILED: 11/17/1998
CLASS PERIOD START: 11/12/1998
CLASS PERIOD END: 11/12/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Stanley, Mandel & Iola LLP (Dallas)
    3100 Monticello Avenue, Suite 750 , Stanley, Mandel & Iola LLP (Dallas), TX 75205
    214.443.4300 ·
  2. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.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
COURT: C.D. California
DOCKET #: 98-CV-09236
JUDGE: Hon. William J. Rea
DATE FILED: 03/15/1999
CLASS PERIOD START: 11/12/1998
CLASS PERIOD END: 11/12/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
No Document Title Filing Date