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Case Status:    SETTLED
On or around 06/27/2001 (Date of order of final judgment)

Filing Date: August 16, 2000

By the Order and Final Judgment signed by U.S. District Judge Benson E. Legg on July 26, 2001, the litigation is certified as a class action consisting of all Persons who acquired common stock of Acrodyne from January 1, 1998 through August 14, 2000, inclusive. The Stipulation and Plan of Allocation are approved as fair, reasonable and adequate. Plaintiffs Counsel are awarded 25% of the Gross Settlement Fund, as attorney fees, and $24,865, in reimbursement of expenses.

By the Notice of Pendency and Proposed Settlement of Class Action, the settlement was for (i) $750,000 in cash plus accrued interest and (ii) 1,600,000 warrants to purchase 1,600,000 shares of Acrodyne common stock at a strike price of $1.00 per share, which shall expire five years from the date that the settlement becomes final.

The complaint alleges that Acrodyne and certain of its current and former officers violated the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. In particular, the Complaint claims that Acrodyne improperly overstated its inventory and gross profits during the Class Period, which will require the Company to amend and restate its 1999 year-end results and its results for first quarter ended March 31, 2000. On August 14, 2000, the Company issued a press release announcing that that it would delay the filing the Company's Form 10-Q for the quarter ended June 30, 2000. The Company also disclosed that it planned to amend and restate its financial results for 1999 and the first quarter of 2000, and that it would engage an independent accounting firm for the purpose of conducting a full review of the inventory balances and related activity to determine the extent of any amendment and restatement. As a result of these revelations, Acrodyne's stock price tumbled approximately 37% on August 14, 2000, until Nasdaq halted trading. As of the date of this release, trading has not resumed.


Sector: Technology
Industry: Communications Equipment
Headquarters: United States


Ticker Symbol: ACROE
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-2490
JUDGE: Hon. Benson E. Legg
DATE FILED: 08/16/2000
CLASS PERIOD END: 08/14/2000
  1. Berman DeValerio Pease Tabacco Burt & Pucillo (MA)
    One Liberty Square, Berman DeValerio Pease Tabacco Burt & Pucillo (MA), MA 2109
    617.542.8300 617.230.0903 ·
  2. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 ·
  3. 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 ·
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