According to the docket, on September 25, 2000, a Stipulation of Settlement was filed. On December 4, 2000, the Court entered the Final Judgment and Order of Dismissal with prejudice. The Court further entered the Orders approving the plan of allocation of settlement proceeds and awarding representative plaintiffs’ counsel attorneys’ fees and costs.
As reported in the Company's Form 10-K for the fiscal year ended December 27, 1998, on February 14, 1997, Plaintiffs filed a Consolidated and Amended Class Action Complaint. The Consolidated and Amended Class Action Complaint alleged causes of action under the federal securities laws and Nevada law for purported misrepresentations during the period between December 19, 1995, and July 22, 1996. The litigation was brought on behalf of a putative class of purchasers of the Company's securities during that time period. The Consolidated and Amended Class Action Complaint did not name the Company as a defendant, presumably due to the automatic stay imposed by the Company's bankruptcy filing and because any claims of plaintiffs against the Company would be resolved in the Bankruptcy Proceedings. By virtue of the confirmation and consummation of the Restated Second Amended Plan, the Company was discharged from any liability to Plaintiffs or Defendants with Plaintiffs and Defendants receiving nothing under the Restated Second Amended Plan.
Eight additional cases making the same claims against the same defendants (and in one instance also against a former director of the Company and also a former officer and director of Grand) have been filed. On January 15, 1997, the court ordered these eight additional lawsuits to be consolidated with the Caesar lawsuit under the caption "In re Stratosphere Corporation Securities Litigation."
The original complaint alleges that defendants violated the federal securities laws (Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5) by, among other things, misrepresenting and/or omitting material information concerning Stratosphere's marketing and operations. Certain defendants are alleged to have profited by their wrongdoing by selling over 980,000 shares of Stratosphere common stock, and grossing over $8.6 million, during the Class Period. Moreover, the complaint alleges that a substantial number of such sales were not reported as required by the Securities and Exchange Commission.