On July 2, 2003, the Court issued an Order and Final Judgment finding the terms and conditions of the stipulation and agreement of settlement dated March 28, 2003 are reasonable and adequate for the settlement of all claims asserted by the classes against the defendants. Further, U.S. District Judge Leonie M. Brinkema awarded plaintiffs’ counsel 30% of the Gross Settlement fund in fees and $1,525,000.00 in reimbursement of minus the $37,037.50 awarded to objectors counsel by our order of July 2, 2003. The case is closed.
According to a Press Release dated December 29, 2000, the complaint alleges that defendants violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 by issuing a materially false and misleading Registration Statement and Prospectus. For example, as alleged in the Complaint, the Registration Statement and Prospectus falsely described the effect of the Company's acquisition of Metamor Worldwide, Inc. and its controlling interest of Xpedior Incorporated. On November 2, 2000, the Company shocked the market by reporting, among other things, a net loss of $1.4 billion for the third quarter of 2000, which included a $504 million charge to earnings to reflect the write-down of certain of the Company's "non-strategic" businesses acquired as part of the Metamor acquisition. The Company further announced that its President and Chief Operating Officer, defendant Harold Wills, had resigned. The market's reaction to this news was immediate. The stock price closed at $ 2 15/16 on November 2, 2000, down from $ 6 47/64 the previous day, down substantially from its recent trading price of $59 13/16 reached on March 8, 2000, and from its trading price of $16.25 on August 3, 2000.