According to the Order on Final Judgment entered on August 19, 2002, U.S. District Judge Paul C. Huck approves the terms and conditions of the motion for Preliminary Approval of Class Action Settlement filed on April 29, 2002. The Plaintiff's counsel is awarded 30% of the settlement fund being the sum of $525,000.00 in fees. The case is closed.
The original Complaint charges National Auto and certain of its officers and directors, with violating the federal securities laws. The plaintiff claims that defendants misrepresented and concealed material facts concerning the Company's financial results, including that the Company was artificially inflating its revenue and earnings by, inter alia, concealing (through misstatements of fact, fraudulent accounting, and non-compliance with disclosure rules promulgated by the SEC) the existence of serious deficiencies in the servicing and collection of loans by the Company's outside loan servicer, and the fact that these serious deficiencies caused delinquencies and losses to increase.