According to the docket, on April 27, 2001, the Court entered the Order by U.S. District Judge Joseph L. Tauro approving the final settlement and awarding attorneys’ fees of $3,300,000.00. Judgment was entered and the case was closed. On May 13, 2002, the Court the Order authorizing the distribution of the settlement fund.
A Notice of Settlement has been filed to inform the proposed Settlement of certain related Class Actions and of the hearing to be held by the United States District Court for the District of Massachusetts to consider the fairness, reasonableness and adequacy of the proposed Settlement. Defendants have agreed to pay $10 million to settle these lawsuits. Pursuant to the Settlement described herein, a Settlement Fund totaling $10,000,000 in cash plus interest accrued after December 4, 2000, has been established. Plaintiffs estimate that there were approximately 51 million shares of Summit common stock purchased during the Class Period which were damaged as a result of the alleged wrongdoing described below.
The original complaint was filed on August 2, 1996. On August 12, 1996, two additional complaints, both purporting to be class actions and asserting similar allegations against the same defendants, were filed in the same court by three additional named plaintiffs. The complaints purport to allege securities fraud claims under Sections 10(b), 20(a) and 20(b) of the Securities Exchange Act of 1934. The complaints assert that the Company and the individual defendants made misrepresentations and omissions to the public which caused the Company's stock price to be artificially inflated. On August 9, 1996, a complaint, also purporting to be a class action, was filed in the United States District Court for the District of Massachusetts by James J. Locke, together with three other named plaintiffs. Between August 2, 1996 and October 8, 1996, fourteen actions were
commenced against the Company and, in some instances, against certain of its officers.
The actions were consolidated, by order of the Court entered December 2, 1996, as In re Summit Technology Securities Litigation, Civil Action No. 96-11589-JCT (the "Exchange Act Action"). Plaintiffs filed a First Amended and Consolidated Class Action
Complaint (the "Complaint") on January 10, 1997. In the Complaint, plaintiffs claim to have been purchasers of the Company's Common Stock at various times between May, 1995 and June, 1996. They claim violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 arising out of public statements made by the Company or its officers. Plaintiffs allege that the statements made material misrepresentations of fact,
or failed to disclose material information necessary to make statements made not misleading, concerning a variety of matters. On October 1, 1996, an additional action was commenced in the United Sates District Court for the District of Massachusetts against the Company, its directors, certain of its officers and the four underwriters of the Company's October, 1995 Common Stock offering. The action was coordinated with In re Summit Technology Securities Litigation, Civil Action No. 96-11589, by order of the Court dated December 2, 1996 and is presently pending as In re Summit Technology Securities Litigation (the Burke Action), Civil Action No. 96-11589 (the "Burke Action"). Plaintiff filed an Amended Complaint (the "Amended Complaint") on January 10, 1997.