According to the docket posted, on December 17, 2002, the Court entered the Order and Final Judgment signed by U.S. District Judge Alvin W. Thompson. The court approved the settlement and awarded attorneys’ fees in the amount of $1,025,000 and reimbursement of expenses in amount of $44,550.49.
By the Notice Of Pendency Of Class Action, Settlement And Hearing Thereon, a Settlement in the amount of $4,100,000 in cash has been established. A hearing (the “Final Approval Hearing”) will be held before the Honorable Alvin W. Thompson, United States District Judge, United States District Court for the District of Connecticut, on November 25, 2002 at 4:00 p.m. at the United States Courthouse, Abraham Ribicoff Federal Building, 450 Main Street, Hartford, Connecticut 06103, for the purposes of determining whether the Settlement is fair, reasonable, and adequate and whether it should be approved by the Court; whether judgment should be entered dismissing the Action with prejudice; whether the method of allocation for the distribution of the Settlement Fund should be approved as fair and reasonable; and to consider plaintiffs’ application for an award of attorneys’ fees and reimbursement of disbursements. The Final Approval Hearing may be adjourned from time to time by the Court at the Final Approval Hearing or any adjourned session thereof without further notice.
Earlier, according to the same Notice, by Order dated April 26, 2000, the Court consolidated all pending Federal securities actions against the Defendants and appointed Rena Cheng, Robert Cheng, Yun Dong Wang and Yun Lan Jiang (the “Cheng Family”) as lead plaintiffs and approved lead plaintiffs’ selection of Cauley, Geller, Bowman & Coates, LLP and Berman DeValerio Pease Tabacco Burt & Pucillo as Co-Lead Counsel. On June 20, 2000, the lead plaintiffs filed a consolidated amended class action complaint in the United States District Court for the District of Connecticut against the Defendants, superseding all complaints previously filed by plaintiffs relating to IMA (the “Complaint”). On July 24, 2000, IMA filed a voluntary petition for the relief afforded by Chapter 11 of Title 11, U.S.C. §101 et seq. (the “Bankruptcy Filing”) in the United States Bankruptcy Court for the District of Connecticut. As a result of the Bankruptcy Filing, the Action was stayed as to IMA. On or about September 18, 2000, the Individual Defendants filed a motion to dismiss the Complaint. On November 2, 2000, plaintiffs filed an opposition to Defendants’ motion to dismiss. Thereafter, counsel for plaintiffs and counsel for Defendants engaged in negotiations regarding the possibility of settling the Action. These negotiations ultimately led to the Settlement.
The original complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's financial condition, revenues and earnings. As a result of these false and misleading statements the Company's stock traded at artificially inflated prices during the class period. Prior to the disclosure of the above mentioned adverse facts, certain insiders took advantage of the inflated stock price by selling thousands of shares of the Company's common stock to the unsuspecting investing public. When the truth about the Company was revealed, the price of the stock dropped significantly.