According to the docket posted, on March 4, 2005, a Stipulation of Settlement was filed. In accordance with Rule 23(e), the action is dismissed with prejudice on the merits and settled. The Court entered that day the Final Judgment and Order signed by U.S. District Judge Deborah A. Batts.
By the Summary Notice of Class Action Settlement, Conditional Class Certification, And Fairness Hearing, a hearing has been scheduled before this Court on March 2, 2005 to consider approval of the proposed settlement of this action for, among other consideration, $825,000; certification of a plaintiff class; Class Counsel's application for attorney's fees and reimbursement of expenses; and related matters in the above-captioned action brought on behalf of the Class defined above.
The class action complaint alleges defendants violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by making a series of materially false and misleading statements concerning the Company's financial results during the Class Period. On March 3, 1999, the Company announced that it would have to restate its financial results for the fiscal years 1996 and 1997 and the first, second and third quarters of the fiscal year 1998, including those in the Registration Statement. The Company stated that it would have to restate net income, shareholders equity, and earnings per share for the afore mentioned time period and retroactively measure credit enhancement assets using the "cash-out" accounting method. The restatement was required because the financial statements improperly used the practice of measuring and accounting for all excess cash flows by using the "cash-in" accounting method as opposed to the "cash-out" method mandated pursuant to Generally Accepted Accounting Principles. The Complaint alleges that as a result of these false and misleading statements the price of Life Financial common stock was artificially inflated throughout the Class Period causing plaintiff and the other members of the Class to suffer damages.