According to the docket, on September 14, 2001, the Settlement Fairness hearing was held before U.S. District Judge Alfred J. Lechner, Jr. On September 28, 2001, the Court entered the Order by Judge Lechner approving the settlement, and awarding plaintiffs’ counsel attorney fees in the amount of $1,436,401.79, leaving $3,134,069.69 for the SCII shareholders. The case is closed.
By the Notice Of Pendency Of Class Action, a hearing will be held before the Honorable Alfred J Lechner, Jr in the United States Courthouse, Martin Luther King, Jr Federal Building & Courthouse, 50 Walnut Street, Newark, NJ 07101, at 9 00 a m , on September 14, 2001 (the "Settlement Fairness Hearing") to determine whether a settlement of claims by shareholders of Safety Components International, Inc is fair, reasonable and adequate and to consider a proposed plan of allocation of the settlement proceeds. The Court, by Preliminary Order In Connection With Settlement Proceedings, dated May 10, 2001, has certified a Class consisting of "all persons who purchased the common stock of SCII during the period between May 28, 1997 and April 10, 2000, inclusive.” Pursuant to the terms of the Stipulation and Agreement of Settlement dated April 16, 2001, a cash fund, initially consisting of $4,500,000, plus interest, has been established.
Earlier, according to the Notice, on April 10, 2000, Defendant SCII filed a petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. On September 11, 2000 the Bankruptcy Court entered an order confirming SCII's plan for reorganization under Chapter 11 of the United States Bankruptcy Code.
On February 29, 2000, the Court entered the Order consolidating the cases under Master File, 00-CV-00082, captioned "In re Safety Components International, Inc. Securities Litigation.” The Court further appointed Class Members Joseph LaMotta and Jay Langner as lead plaintiffs and law firm Bernstein, Liebhard & Lifshitz, LLP, and Milberg, Weiss, Bershad, Hynes & Lerach, LLP, as co-lead counsel. On March 21, 2000, the plaintiffs filed a Consolidated Amended Class Action Complaint.
The original Complaint charges Safety and certain of its officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of Safety's operations and financial statements drove Safety's stock price to a Class Period high of $18.8125 per share. Safety's common stock fell to a class period low of $2.5938 per share, and is currently halted from trading, inflicting enormous damages on investors. Plaintiff seeks to recover damages on behalf of Class members and is represented by the Law Offices of Lionel Z. Glancy, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.