According to the docket posted, on May 7, 2000, the plaintiff filed a Notice of Appeal from the District Court’s earlier April 8, 2002 decision which denied the Corporation’s motion to dismiss, granted in part and denied in part the motion to dismiss on behalf of the individual defendants, and granted the motion to dismiss by KPMG. The case eventually settled with the Thomas & Betts Corporation ("T&B"), T&B's President and Chief Executive during the Class Period, and T&B's Vice President and Chief Financial Officer during the Class Period. On July 14, 2003, the Sixth Circuit Court of Appeals remanded the action back to the District Court. A Stipulation and Agreement of Settlement with KPMG LLP was filed and later approved. The Order and Final Judgment approving the settlement of $4,650,000 with KPMG was entered on August 4, 2004.
In a news article, on April 8, 2002, the Court granted in part and denied in part, the Defendants' Motions to Dismiss. Thereafter, Plaintiffs and Defendants Thomas & Betts Corp. and officers of the company agreed to settle the action. Prior to entering into a Stipulation of Settlement, Plaintiffs' counsel conducted confirmatory discovery, including review and analysis of tens of thousands of pages of documents produced by Thomas & Betts. Pursuant to the terms of the proposed settlement, a Settlement Fund in the amount of $46,500,000 in cash has been created for the benefit of the Class and will include interest that accrues on the fund prior to distribution. A hearing, to determine whether the proposed settlement is fair, reasonable and adequate, was held December 20, 2002. That same day Judge Julia S. Gibbons granted Final Approval of the settlement and awarded Plaintiffs' Counsel attorneys' fees and reimbursement of expenses.
The original complaint alleged that statements made by the Company during the Class Period regarding its business and financial results were materially false and misleading. In particular, the complaint alleged that the Company issued false financial statements for 1999 and the first quarter 2000, requiring a restatement of 1999 financial statements and potentially a restatement of the first quarter 2000 financial statements. The Complaint further alleged that TNB took enormous charges of $223.9 million during the second quarter of 2000 to increase reserves for accounts receivable, increase reserves for excess and obsolete inventory, reduce the carrying value of inventory, and reverse revenue which should have been recorded as consignment sales. As a result of the Company’s conduct and statements, the stock has lost over 30% of its value.