According to the docket posted, on July 10, 2001, the settlement hearing was held before U.S. District Judge Edward F. Harrington. On July 12, 2001, the Court entered the Order and Final Judgment. Pursuant to the Order and Final Judgment, the Court approved the terms of the stipulation and the settlement as fair, reasonable, and adequate and in the best interests of the class. Further, the Court approved lead counsels’ request for an award of attorneys' fees equal to 30% of the $7.5 million settlement fund plus accrued interest, and reimbursement of out-of-pocket expenses in the amount of $85,559.25.
By the Notice of Pendency of Class Action, a Settlement Hearing will be held before the Honorable Edward D. Harrington in Courtroom No. 19 of the United States Courthouse, U.S. Courthouse, 1 Courthouse Way, Boston, MA on July 10, 2001 at 2:00 p.m. (the “Settlement Hearing”) to determine, among other things, whether the proposed Settlement as set for in the Stipulation and Agreement of Compromise, Settlement and Release dated March 14, 2001 (the “Stipulation”), is fair, reasonable and adequate, and to consider the application of Plaintiffs’ Counsel for attorneys’ fees and reimbursement of expenses. A settlement fund consisting of $7,500,000 in cash, plus interest, has been established.
The Court, by Preliminary Order In Connection With The Settlement Proceedings, dated April 5, 2001, has certified a plaintiff class consisting of: “all persons and entities who purchased or otherwise acquired Interspeed common stock during the time period beginning and including September 24, 2999 through and including October 6, 2000 (the “Class Period”).”
On January 8, 2001, the Court appointed eleven Lead Plaintiffs. Following negotiations, the parties reached an agreement on the terms of a potential settlement of the Action. The parties entered into a Memorandum of Understanding (“MOU”) dated February 16, 2001, which sets forth the terms of a settlement of the Action. Thereafter, the parties entered into a Stipulation and Agreement of Compromise, Settlement and Release subject to approval by the Court.
The complaint alleges that Interspeed, certain of its officers and Brooktrout, Inc. (Nasdaq: BRKT), Interspeed's controlling shareholder, violated the federal securities laws by providing materially false and misleading information about the Company's business and financial condition which caused Interspeed's stock to trade at artificially inflated prices during the Class Period. On October 6, 2000, Interspeed announced that it was considering restating its first, second and third quarter 2000 financial statements because of accounting misstatements. Interspeed further announced the resignation of defendant Stephen A. Ide, Interspeed's President and CEO, together with the termination of several of its key employees. On this news, Interspeed's shares plummeted to as low as $1.00 -- more than 97% off its Class Period high of $37.00.