According to the docket, on April 3, 2003, the Court entered the Order and Final Judgment by U.S. District Judge Arthur J. Tarnow dismissing the complaint with prejudice. Earlier, the Amended Complaint was filed, and on September 15, 2000, the defendants filed a motion to dismiss the amended complaint. On May 11, 2001, the Court entered the Opinion and Order by Judge Tarnow granting in part and denying in part motion to dismiss the amended complaint by defendants. Specifically, Judge Tarnow denied the motion to dismiss as to all alleged material misstatements made during the class period, granted the motion as to all alleged material misstatements made after the class period, and granted the motion to dismiss by defendant Underwriters. On February 20, 2003, a Stipulation and Agreement of Settlement was filed. By the Notice of Pendency, the Settlement Fund consisted of $12,680,000 in cash.
The original Complaint charges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The Complaint alleges that defendants issued a press release on December 9th stating that the Company was unaware of any reason for a recent decline in the Company's stock price. In fact, the defendants were aware that customers were curtailing orders, which would cause a significant revenue shorfall in the fourth quarter. Upon announcement of this revenue shortfall, after the market closed on December 17th, Lason stock lost 50% of its value.
Note: On December 5, 2001, Lason filed a voluntary petition for protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware, Case No. 01-11488, and all actions against Lason were stayed by operation of the Bankruptcy laws.