According to the docket, on February 26, 2002, a Stipulation and Agreement of Settlement was filed, and on August 1, 2002, the Court entered the Stipulated Order and Final Judgment by U.S. District Judge Frederick J. Martone. The Stipulation and the proposed Class Action Settlement was approved and the complaint was dismissed with prejudice. The Court lastly entered the Final Order Authorizing the Distribution of the Settlement fund on April 26, 2004.
The original complaint charges Finova and certain of its officers and directors with violations of the federal securities laws by making misrepresentations about Finova's business, earnings growth and financial statements and its ability to continue to achieve profitable growth and by concealing a large non-performing loan and failing to write-down this asset on a timely basis. By issuing these allegedly false and misleading statements, defendants artificially inflated Finova's stock price to a Class Period high of $54-1/2 before the true facts about Finova's non-performing loan and much lower earnings were revealed and Finova's stock collapsed to as low as $16-3/16 per share.