On June 12, 2002, U.S. District Judge Adalberto Jordan issued an Order approving the motion to approve the claims administrators's report and distribute the settlement fund. The Court approved $13,672.82 to the Claim Administrator and $9,596.32 to Smith-Edwards-Dunlap Co. Earlier, on November 30, 2001, the Court entered the Final Judgment of Dismissal with Prejudice as to certain defendants, approved the settlement, and awarded attorneys fees in the amount of 30% of the settlement proceeds as well as $61,223.22 in reimbursement of costs and expenses. The case was closed. The Stipulation and Agreement of Settlement was initially filed on March 6, 2001, and preliminarily approved on August 24 that year. In addition, on April 15, 1999, U.S. District Judge William J. Zloch issued a Final Order dismissing count IV of complaint without prejudice.
The Complaint alleges that the defendants participated in, approved and/or permitted to be made misrepresentations of material fact in the Prospectus, and omitted to disclose material facts necessary to make the statements made to plaintiffs and the class not misleading, concerning BMJ's capitalization, accounting practices and management procedures in violation of sections 11, 12(a)(2) and 15 of the Securities Act of 1933, 15 U.S.C. sections 77k, 77(l)(a)(2) and 77o, and common law. The Complaint further alleges, among other things, that defendants' violations caused plaintiffs and the class damages; that on December 17, 1998, BMJ commenced bankruptcy proceedings under Chapter 11 of the U.S. Bankruptcy Code; and that BMJ's stock, which had been issued to the public at $7.00 per share, closed at approximately $0.08 per share on December 31, 1998.