According to the docket dated June 19, 2000, the court issued the Final Judgment and Dismissal dated August 31, 1999, approving the settlement and dismissing the case.
On May 7, 1999, the Company announced that it had entered into an agreement that provides for the settlement of the consolidated securities class action lawsuit pending against the Company. The settlement provides that all claims against the Company, certain of its officers and directors and underwriters will be dismissed. Under the terms of the settlement, in exchange for the dismissal and release of all claims, the Company will pay to the class $7.5 million in cash, together with shares of Common Stock of the Company valued at $1.3 million. The Company recorded a charge for the settlement of approximately $9.3 million, including legal fees, in the quarter ended June 30, 1999. The settlement is subject to certain customary conditions, including notice to the class and approval by the Court.
The original complaint, which was later consolidated with a similar complaint, charged the Defendants with violations of the federal securities laws by making false and misleading representations in the May 31, 1996 Registration Statement and Prospectus prepared and disseminated by Defendants (the "Prospectus") in connection with the initial public offering of 3,750,000 shares of SSNC common stock (the "IPO"). The Plaintiff claims that the IPO Prospectus contained certain misrepresentations regarding the valuation placed on SSNC by the Defendants and the determination by the Defendants of the initial public offering price of the SSNC stock sold in the IPO.