According to the docket dated November 30, 2001, the court entered the Final Order awarding plaintiff’s counsel fees in the amount of $1,155,000, or 33% of the Settlement Fund of $3,500,000, and reimbursement for expenses in the amount of $373,740.97. The Court further entered U.S. District Judge Albert V. Bryan Jr.’s Final Judgment Order finding the Proposed Settlement fair and adequate to the Class and its members, approving the Settlement, and dismissing the action with prejudice and without costs. The case was closed.
The original Complaint charges that Software A.G., certain of its officers and directors and its largest shareholder, Thayer Equity Investors, III, L.P., violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The Complaint alleges that defendants issued a series of materially false and misleading financial statements and failed to reveal that the Company was employing fraudulent accounting methods which artificially inflated Software A.G.'s revenues and earnings. On April 5, 1999, the Company announced that preliminary first quarter results would be below analysts' expectations. The Complaint alleges that this shortfall in revenues and earnings was a direct result of defendants' deceptive practice of prematurely recognizing revenue that artificially boosted AGS's
financial results during the period. The Complaint further alleges that defendants utilized their inside information regarding the artificial inflation of the Company's stock price to sell massive amounts of their AGS holdings, for proceeds exceeding $195 million.