According to the firm's 10-K dated 09/28/2000, during October 1999, an agreement in principle to settle all of this case, which was consolidated with four other filings, was reached and the parties subsequently executed and filed with the Court a definitive settlement agreement. On July 27, 2000 the settlement was approved by the Court and such settlement had no material adverse effect on the Company's financial position and results of operations.
A class action, with similar allegations, was also filed in the U.S. District Court for the Eastern District of Pennsylvania. On December 8, 1998, the case filed in the Southern District of New York was transferred to the Eastern District of Pennsylvania.
The original Complaint asserted claims against the Company, its Chairman and its former CFO, who are named as defendants in the suit, under the federal securities laws and for common law fraud, arising from alleged misrepresentations by the Company and the two individuals. The suit was filed as a class action on behalf of purchasers of the Company's common stock during the period from June 15, 1996 through August 15, 1997.