According to the docket posted, on January 20, 2004, the Court entered the Judgment in Settlement II and Order of Dismissal by U.S. District Judge Richard W. Story. The Court approved the final settlement and attorneys’ fees, and dismissed the case. The case is now terminated.
By the Notice Of Pendency Of Class Action, Of Proposed Second And Final Settlement Of Class Action As To All Remaining Defendants, Of Final Approval Hearing, And Of Right To Appear, a hearing will be held by the United States District Court for the Northern District of Georgia, Atlanta Division (the “Court”) on January 16, 2004 at 10:00 a.m. in Courtroom 2105 of the United States Courthouse, 75 Spring Street, SW, Atlanta, Georgia 30303 to consider the fairness, reasonableness, and adequacy of this proposed settlement (the “Final Approval Hearing”). If approved, the settlement with the Remaining Defendants would be the second and final settlement in this class action (“Settlement II”). This Court previously entered an Order on November 15, 2001, which approved a class action settlement valued at approximately $39,500,000 between the Class and JDN Realty Company (“JDN”), JDN Development Corporation (“JDN Development”) (collectively the “JDN Entities”) and certain officers and directors of JDN Realty (“Settlement I”). The terms of proposed Settlement II are more fully set forth in the Stipulation and Agreement of Settlement, which was filed with the Court on October 15, 2003 and which is incorporated herein by reference (the “Stipulation for Settlement II”). The aggregate recovery to the Class, if Settlement II is approved, is valued at approximately $43,000,000, plus interest.
During the late fall of 2001, the Remaining Defendants moved to dismiss the Consolidated Complaint. By Order dated January 25, 2002, the Court denied all the motions to dismiss, except the motions filed by McCullough Sherrill LLP and Bradley J. Taylor. The Court determined that McCullough Sherrill and Taylor were secondary actors who could not be held liable under an Eleventh Circuit case entitled Ziemba v. Cascade International, Inc., 256 F.3d 1194 (11th Cir. 2001), which became binding precedent after this case was filed but before the motions to dismiss were ruled upon. Defendant Brunstad moved to reconsider the Court’s Order denying his motion to dismiss, and his motion for reconsideration was denied on November 5, 2002.
On July 6, 2001, Clarion, on behalf of the Class, reached Settlement I in principle with all Defendants except the Remaining Defendants. Settlement I was preliminarily approved by the Court on August 15, 2001 and was finally approved on November 15, 2001. Settlement I, which was paid in both cash and stock, was valued at approximately $39,500,000 between the Class and JDN Realty Company (“JDN”), JDN Development Corporation (“JDN Development”) (collectively the “JDN Entities”) and certain officers and directors of JDN Realty.
On or after February 15, 2000, at least nineteen cases were filed as proposed class actions on behalf of certain persons who purchased the common or preferred stock of JDN. On April 17, 2000, the Court ordered the actions consolidated for all purposes under the caption In re: JDN Realty Corporation Securities Litigation, Civil Action No. 1:00-CV-0396-RWS, and provided for the filing of a consolidated amended class action complaint. On April 17, 2000, Clarion moved for appointment as lead plaintiff. On June 9, 2000, the Court entered an Order appointing Clarion as Lead
Plaintiff and the law firm of Chitwood & Harley, LLP as Lead Class Counsel. The Consolidated Amended Class Action Complaint (the “Consolidated Complaint”) was filed on or about June 14, 2001. The Consolidated Complaint asserts violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 (the “Securities Act”), Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), and Rule 10b-5 promulgated thereunder.
The original class action suit alleges that, during the Class Period, JDN Realty and certain of its officers concealed the fact that certain officers had received undisclosed compensation in connection with certain real estate development projects. The complaint further alleges that, as a result of this concealment, JDN's publicly-filed financial statements were materially misleading and that JDN's stock price was artificially inflated throughout the Class Period.