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Case Status:    SETTLED
On or around 05/13/2003 (Date of order of final judgment)

Filing Date: September 05, 2000

By the Order and Final Judgment entered on May 13, 2003, the settlement is approved as fair, reasonable, and adequate and the complaint is dismissed with prejudice.

According to the proposed settlement posted on the site dated March 7, 2003, a settlement of $4,500,000 in cash, with interest, was reached on December 5, 2002. A settlement fairness hearing is set for May 13, 2003 for final approval by the court.

The original complaint alleges, that during the Class Period, defendants violated federal securities laws by issuing to the investing public false and misleading statements and press releases concerning the Company's product ADCON-L, its efficacy and the integrity of the clinical data submitted in support of ADCON-L's Food and Drug Administration (“FDA”) approval process.

Further, the complaint alleges that on August 28, 2000, Gliatech, Inc., shocked the investing community by announcing that the Boards of Directors of Gliatech and Guilford agreed to a mutual termination of their Merger Agreement, due to Guilford's decision not to pursue the merger based on the FDA's issuance of inspectional observations contained in a Form 483 report, issued by the FDA to Gliatech on August 23, 2000, which identified certain items pertaining to Gliatech's methods of recording and presenting clinical data for ADCON-L submitted to the FDA. Indeed, it was revealed that doctors told Gliatech of their concerns about ADCON-L, such as inflammation and spinal-fluid leakage, as long as a year and a half ago, and the Company did not investigate the concerns and notify the FDA until March 13, 2000. These disclosures contradicted much of the information provided by defendants to the market during the Class Period and caused the Company's common stock to plummet 59% on August 29, 2000, or $15 3/16 to $10 3/16 per share.

NOTE: Gliatech was named a defendant in this Action. On May 9, 2002, Gliatech filed a voluntary petition for protection under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Ohio, Eastern Division, Case No. 02-15045. All actions against Gliatech have been stayed by operation of the Bankruptcy laws.

COMPANY INFORMATION:

Sector: Healthcare
Industry: Biotechnology & Drugs
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: GLIA
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: N.D. Ohio
DOCKET #: 00-CV-2236
JUDGE: Hon. Paul R. Matia
DATE FILED: 09/05/2000
CLASS PERIOD START: 04/09/1998
CLASS PERIOD END: 08/29/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  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 · info@bermanesq.com
  2. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
  3. 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
  4. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  5. Strauss & Troy
    The Federal Reserve Building, 150 East Fourth Street, Strauss & Troy, OH 45202-4018
    513.621.2120 513.241.8250 · wlwoods@strauss-troy.com
No Document Title Filing Date
COURT: N.D. Ohio
DOCKET #: 00-CV-2236
JUDGE: Hon. Paul R. Matia
DATE FILED: 10/05/2001
CLASS PERIOD START: 04/09/1998
CLASS PERIOD END: 08/29/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
  2. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
No Document Title Filing Date