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Case Status:    SETTLED
On or around 06/28/2005 (Date of order of final judgment)

Filing Date: July 14, 2000

According to the docket posted, on June 28, 2005, the Court entered the Order and Final Judgment signed by U.S. District Judge Marvin J. Garbis. The settlement was approved and the action dismissed with prejudice.

Previously, on January 26, 2001, the Court entered the Order granting the motion to consolidate the various cases. On March 28, 2001, the Court entered the Memorandum and Order appointing lead plaintiffs and lead counsel. On May 7, 2001, the plaintiffs filed a Consolidated Amended Class Action Complaint, and the defendants responded by filing motions to dismiss the Consolidated Amended Class Action Complaint. On August 2, 2002, the Court entered the Memorandum and Order granting certain defendants’ and denying certain defendants’ motions to dismiss the Plaintiffs' Consolidated Amended Class Action Complaint. On August 30, 2002, a plaintiff filed a notice of appeal in the Fourth Circuit Court of Appeals against the dismissal order. The appeal was later dismissed. The remaining defendants filed a Stipulation of Settlement. According to the Stipulation, the settlement fund was in the amount of $7.5 million. On February 1, 2005, the Court preliminarily approved the settlement.

The original Complaint alleges certain officers and directors of Creditrust Corporation ("Creditrust") with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the Complaint alleges that the officers and directors, by causing Creditrust to issue false and misleading statements in Creditrust's press releases and public filings during the Class Period, artificially inflated the price of Creditrust common stock during the class period. The defendant officers and directors caused Creditrust to overstate its earnings by deliberately inflating the estimated amounts that could be collected on bad debt receivables purchased by the Company, thereby inflating revenue and pre-tax earnings by at least $4.9 million for the fiscal year 1999 alone. In addition, defendant Rensin sold more than 500,000 shares of his personal holdings in the company during the class period for a profit in excess of $18 million.

COMPANY INFORMATION:

Sector: Services
Industry: Business Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CRDT
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: D. Maryland
DOCKET #: 00-CV-02174
JUDGE: Hon. Marvin J. Garbis
DATE FILED: 07/14/2000
CLASS PERIOD START: 07/29/1998
CLASS PERIOD END: 03/31/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA)
    225 Broadway, Suite 1900, Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA), CA 92010
    619.702.7350 619.702.7351 ·
  3. Keller Rohrback LLP (Seattle)
    1201 Third Avenue, Suite 3200, Keller Rohrback LLP (Seattle), WA 98101-3052
    800.776.6044 206.623.3384 · investor@kellerrohrback.com
  4. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  5. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  6. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  7. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date
COURT: D. Maryland
DOCKET #: 00-CV-02174
JUDGE: Hon. Marvin J. Garbis
DATE FILED: 05/07/2001
CLASS PERIOD START: 07/29/1998
CLASS PERIOD END: 03/31/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. Tydings & Rosenberg LLP
    100 East Pratt Street, Tydings & Rosenberg LLP, MD 21202
    410.752.9700 410.757.5460 · webmaster@tydingslaw.com
No Document Title Filing Date
No Document Title Filing Date