According to the Final Judgment and Order dated May 6, 2002, U.S. District Judge Alicemarie H. Stotler dismissed the case. The court approved the settlement set for in the Stipulation. The plaintiffs’ counsel are awarded attorneys’ fees of 25% of the settlement fund and reimbursement of litigation expenses in the amount of $260,206.05 together with the interest earned.
In a Press Release dated June 12, 1998, the Complaint alleges that Premier and two of its officers and directors violated the federal securities laws by issuing false and misleading statements and omitting material facts regarding Premier's financial results and operations during the Class Period.
The Complaint alleges that, among other things, defendants materially misstated Premier's financial results for the fiscal year ended March 31, 1997 and for the fiscal quarter ended December 31, 1998. On April 15, 1998, defendants were forced to reveal that Henry Schein Inc., a well known medical products distributor, had refused to accept millions of dollars of Premier's new dental laser products and that Premier would restate its third quarter 1998 financials, reducing revenues by over 34%. Thereafter, on May 26, 1998, defendants further revealed that Premier's auditors, Ernst & Young LLP, had resigned and withdrawn its report on the Company's financial statements for the fiscal year ended March 31, 1997. The Complaint further alleges that, as a result of defendants' violations, the market price of Premier stock during the Class Period closed as high as $14 per share, and fell to just 4-1/8 at the close of trading on May 26, 1998, the first trading day after the close of the Class Period.
NOTE: On March 10, 2000, Premier Laser Systems, Inc. filed a voluntary petition under Chapter 11 of the Bankruptcy Code.