According to the docket posted, on October 1, 2003, the Court entered the Order and Final Consent Judgment signed by U.S. District Judge Michael A. Telesca. The settlement was approved and the case dismissed.
On December 20, 2000, the Court consolidated the various actions, appointed lead plaintiff and appointed Wolf Haldenstein as lead counsel. On March 5, 2001, a consolidated amended complaint was filed with the Court. Defendants have filed a motion for dismissal. The Court dismissed the complaint on February 11, 2002. Plaintiffs filed an appeal on March 11, 2002. On October 4, 2002, the Court entered the Mandate of the U.S. Court of Appeals dismissing the appeal. A settlement of $1.3 million was proposed and preliminarily approved in an Order on February 21, 2003.
The original complaint alleges defendants with issuing false and misleading statements and press releases concerning the Company's efforts with respect to and the difficulties experienced during its efforts to "build out" its networks on a national scale. Moreover, during the Class Period, the Company misrepresented the pace at which it was building its national, symmetrical digital subscriber line (SDSL) network and failed to disclose that it was unable to adequately provision voice-over SDSL (VoSDSL) capable loops at levels to meet customer demands due to problems with incumbent carriers and the failure to make the necessary line available in a timely manner. On September 7, 2000, after the close of the market, the Company disclosed the true state of its fiscal affairs. Despite having said only weeks before that it would "hit its numbers" for the remainder of fiscal 2000 and fiscal 2001, and that its national expansion plan was on a steady course, the Company shockingly disclosed that it expected significantly lower revenues and materially lower earnings that had been previously predicted. These revelations caused the Company's common stock to decline over 40%, and lose approximately $400 million in total market capitalization.
NOTE: On April 8, 2002, Mpower filed a petition for relief under Chapter 11 of the Bankruptcy Code, and as of the effective date of Mpower's First Amended Joint Plan of Reorganization (the "Plan"), Mpower was discharged and released from any "Claim, Debt and Interest," except as otherwise stated in the Plan, as set forth in the final Confirmation Order entered by the United States Bankruptcy Court for the District of Delaware on July 17, 2002.