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Case Status:    SETTLED
On or around 01/24/2003 (Date of order of final judgment)

Filing Date: February 23, 2000

On December 2, 2002 the U.S. District Court for the Eastern District of New York issued an opinion approving a $25 million plus interest at the applicable United States 6 months Treasury Bill rate (an estimated total of $27.25 million) settlement on behalf of Federated Kaufmann Fund and the class of purchasers of securities of CINAR Corporation.

The original complaint alleges that CINAR and certain of its officers and directors with violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that defendants failed to disclose that the Company was falsely representing that scripts written by United States citizens were written by Canadian citizens in order to obtain favorable tax credits and that, as a result, the Company's financial results were artificially inflated.

The complaint further alleges that in October 1999, press reports revealed that CINAR was the subject of a tax investigation by Canadian federal authorities relating to the issue of whether the company had improperly obtained tax credits available to Canadian-only television productions by falsely attributing scripts written by American authors to Canadians. At that time, the complaint alleges that defendants falsely characterized any impact from the investigation as not material. Then, on February 18, 2000, CINAR issued a press release announcing that at 'a meeting of its Board of Directors, CINAR Corporation (NASDAQ:CINR) reported today on the status of the reviews initiated by its management and Audit Committee of its Board of Directors in connection with certain allegations relating to Canadian content regulations with respect to its productions' and that the 'financial and accounting impact' would be greater than initially anticipated. In response to this announcement, the price of CINAR stock plummeted by 27%. As alleged in the complaint, during the Class Period, without disclosing the aforementioned adverse facts, defendants raised more than $150 million through the sale of CINAR stock in a public offering.

COMPANY INFORMATION:

Sector: Services
Industry: Motion Pictures
Headquarters: Canada

SECURITIES INFORMATION:

Ticker Symbol: CINR
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: E.D. New York
DOCKET #: 00-CV-1086
JUDGE: Hon. Joan M. Azrack
DATE FILED: 02/23/2000
CLASS PERIOD START: 03/03/1999
CLASS PERIOD END: 02/18/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Lowey, Dannenberg, Bemporad & Selinger, P.C.
    1 North Lexington Avenue, 11th Floor, Lowey, Dannenberg, Bemporad & Selinger, P.C., NY 10601-1714
    914.997.0500 914.997.0035 · ldbs@wesetnet.com
  2. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  3. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  4. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  5. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
No Document Title Filing Date
COURT: E.D. New York
DOCKET #: 00-CV-1086
JUDGE: Hon. Joan M. Azrack
DATE FILED: 07/21/2000
CLASS PERIOD START: 04/08/1997
CLASS PERIOD END: 03/10/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Lowey, Dannenberg, Bemporad & Selinger, P.C.
    1 North Lexington Avenue, 11th Floor, Lowey, Dannenberg, Bemporad & Selinger, P.C., NY 10601-1714
    914.997.0500 914.997.0035 · ldbs@wesetnet.com
  2. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
No Document Title Filing Date