According to the docket posted, on May 19, 2003, the Court entered the Order and Final Judgment signed by U.S. District Judge Mark L. Wolf. Lead plaintiffs’ counsel was awarded fees in the amount of $2,160,559, and $57,343 in reimbursement of expenses.
By the Notice of Pendency of Class Action, a Settlement Fund consisting of $7,850,000 in cash, plus interest, has been established. A hearing will be held before the Honorable Mark L. Wolf in the United States Courthouse, One Courthouse Way, Boston, Massachusetts 02210, at 3:00 p.m., on March 19, 2003 to determine whether a proposed settlement of the action as set forth in the Stipulation and Agreement of Settlement dated October 7, 2002, 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.
Earlier, on August 17, 2000, the Court entered the Memorandum and Order granting the motion to consolidated the cases under In re Carematrix Corp. Securities Corp. Securities Litigation, C.A. 99-12318-MLW. Plaintiffs' joint motion for appointment of lead plaintiffs and lead counsel was allowed to the extent that plaintiffs David Bailey and John B. Crook were designated the lead plaintiffs and the law firm of Berman, DeValerio & Pease LLP was designated lead counsel. On April 20, 3001, CareMatrix Corporation filed a suggestion of bankruptcy and the case was stayed and closed. On October 10, 2002, a Proposed Stipulation and Agreement of Settlement and a Consolidated Class Action Amended Complaint were filed.
The original Complaint charges that CareMatrix and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the Complaint alleges that defendants issued materially misleading statements in Securities Exchange Commission filings and press releases about the Company's business, finances, and prospects, and failed to disclose material information throughout the Class Period.