According to the docket, on January 13, 2004, the Court entered the Order and Final Judgment signed by U.S. District Judge Paul V. Gadola. The settlement was approved and the case closed.
In a press release dated October 3, 2003, pursuant to an order of the United States District Court for the Eastern District of Michigan Southern Division,this case has been certified as a class action for the purposes of settlement only and that a settlement for $1,500,000 has been proposed. A hearing will be held before the Honorable Paul V. Gadola in the United States Courthouse to determine whether the proposed settlement should be approved by the Court as fair, reasonable, and adequate, and to consider the application of Plaintiffs' Counsel for attorneys' fees and reimbursement of expenses.
On September 1, 2000, the Court entered the Order consolidating the cases and appointing lead plaintiff and lead and liaison counsel. On November 14, 2000, the plaintiff filed a Consolidated Class Action Amended Complaint, and on February 27, 2001, the defendants responded with a motion to dismiss the complaint. On September 26, 2001, the Court entered the Memorandum, Opinion and Order granting the defendants’ motion to dismiss the complaint, and on December 11, 2001, the Court further denied the plaintiff’s motion for clarification or alternatively for reconsideration of the order. The plaintiff filed an appeal, and on August 12, 2003, the Court entered the order from the U.S. Court of Appeals remanding the action back to the District Court for further proceedings. A Stipulation and Agreement of Settlement was later filed.
The original complaint charges Federal-Mogul and its Chief Executive Officer 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 acquisition integration, revenue and earnings, artificially inflated Federal-Mogul's stock price to a Class Period high of $64.875 per share. Federal-Mogul common stock fell to a low of $9.4375 per share, inflicting enormous damages on investors.