According to the docket posted, on December 2, 2002, the Court entered the Order and Final Judgment signed by U.S. District William G. Bassler. The settlement was approved and the case closed.
By the Notice Of Pendency Of Class Action, a Settlement Fund consisting of $2,450,000 in cash, plus interest, has been established. Pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for the District of New Jersey (the "Court") dated September 6, 2002, that a hearing will be held before the Honorable William G. Bassler in the United States District Court, Martin Luther King, Jr. Federal Building & Courthouse, 50 Walnut Street, Newark, New Jersey 07101, at 11:00 a.m., on December 2, 2002 (the "Settlement Fairness Hearing") to determine whether a proposed settlement (the "Settlement") of the above-captioned action (the "Action") as set forth in the Stipulation and Agreement of Settlement dated as of August 7, 2002 (the "Stipulation"), is fair, reasonable and adequate and to consider the proposed Plan of Allocation for the Settlement proceeds and the application of Plaintiffs' Counsel for attorneys' fees and reimbursement of expenses.The Court, by Order for Notice and Hearing, dated September 6, 2002, has certified a Plaintiff Class consisting of all persons who purchased the common stock of Biomatrix, Inc. ("Biomatrix") between July 20, 1999 and April 12, 2000, inclusive.
On December 20, 2000, the Court entered the Order granting the motion to consolidate the cases, and granting the motion for appointment of lead plaintiff and approval of selection of lead counsel. According to the Order, Group One Ltd. was appointed lead plaintiff, Milberg Weiss Bershad Hynes & Lerach LLP was appointed lead counsel, and Lite DePalma Greenberg & Rivas LLC was appointed liaison counsel. On February 20, 2001, a Consolidated Class Action Complaint was filed, and the defendants responded by filing a motion to dismiss the consolidated class action complaint. On September 9, 2002, the Court entered the Order certifying the action for purposes of settlement, and later that month, on September 18, the Court entered the Stipulation and Order dismissing the action as to one of the individual defendants, the President and Director of Biomatrix during the class period.
The original complaint alleges that defendants knowingly or recklessly disseminated materially false and misleading statements and omissions that misrepresented the efficacy of its leading product, Synvisc, a gel-like substance used in the treatment of osteoarthritis. Plaintiffs allege that Biomatrix distributes Synvisc primarily through its trading partner, Wyeth-Ayerst Laboratories, a division of Home Products ("Wyeth"). Plaintiffs allege that defendants exaggerated medical community acceptance of Synvisc in the treatment of osteoarthritis and that defendants artificially inflated reported sales of Synvisc by stuffing the distribution pipeline with inventory. Plaintiffs allege that misrepresentations and omissions by defendants influenced the views of stock market analysts and fostered an unrealistically positive assessment of Biomatrix and its business, prospects and operations. Plaintiffs allege that, as a result of such misinformation, Biomatrix's stock traded at artificially inflated prices throughout the proposed Class Period.