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Case Status:    SETTLED
On or around 11/30/2000 (Date of order of final judgment)

Filing Date: June 19, 1997

According to the docket posted in the site, the court entered its Final Order and Judgment approving the settlement and dismissing the suit with prejudice on November 22, 2000.

In the Notice Of Pendency And Proposed Settlement dated July 11, 2000, the proposed settlement creates a fund in the amount of $3,250,000 (the "Settlement Fund") and will include interest that accrues on the Settlement Fund prior to distribution. As a part of the settlement agreement the Defendants have denied and continue to deny each and all of the claims and contentions alleged by the Representative Plaintiff in the Litigation. The Defendants expressly have denied and continue to deny all charges of wrongdoing or liability against them arising out of any of the conduct, statements, acts or omissions alleged, or that could have been alleged, in the Litigation. The Defendants also have denied and continue to deny, inter alia, the allegations that the Representative Plaintiff or the Class have suffered damage, that the price of StorMedia common stock was artificially inflated by reasons of alleged misrepresentations, non-disclosures or otherwise, or that the Representative Plaintiff or the Class were harmed by the conduct alleged in the Complaint. Nonetheless, the Defendants have concluded that further conduct of the Litigation would be protracted and expensive, and that it is desirable that the Litigation be fully and finally settled in the manner and upon the terms and conditions set forth in the Stipulation. The Defendants also have taken into account the uncertainty and risks inherent in any litigation, especially in complex cases like this Litigation. The Defendants have, therefore, determined that it is desirable and beneficial to them that the Litigation be settled in the manner and upon the terms and conditions set forth in the Stipulation.

The original Complaint alleged that StorMedia and certain of its officers and directors violated the federal securities laws by making misrepresentations that StorMedia was enjoying strong demand for all of its products and that the strong demand and a new, huge multi-year supply contract with Maxtor Corporation would result in StorMedia achieving substantial sequential revenue and earnings gains throughout 1996 and 1997. The complaint alleged that when StorMedia disclosed that it was encountering soft demand for its products, revealed that its second and third quarter 1996 results would decline, and that its contract with Maxtor had been canceled, its stock declined to $9 3/4 per share. The complaint also alleged that five of StorMedia's insiders sold over 207,000 shares of StorMedia stock during the class period at prices as high as $28.83 per share, and that two of the insiders sold 100% of their holdings while three others sold 63-79% of their holdings.

COMPANY INFORMATION:

Sector: Consumer Cyclical
Industry: Audio & Video Equipment
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: STMD
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: N.D. California
DOCKET #: 97-CV-20538
JUDGE: Magistrate Judge Patricia V. Trumbull
DATE FILED: 06/19/1997
CLASS PERIOD START: 11/27/1995
CLASS PERIOD END: 08/09/1996
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.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
No Document Title Filing Date