According to a press release dated April 20, 2004, a federal judge entered a Final Judgment And Order approving settlement and dismissal with prejudice of the consolidated securities class action lawsuit filed against the company and several of its past and present officers and directors. Under the terms of the settlement, all claims against the Company have now been dismissed without admission of liability or wrongdoing. The shareholder class is receiving a cash payment of $19.2 million.
On March 8, 2001, the Court issued an Order appointing Lead Plaintiff and approving Lead Counsel in this Action. On March 29, 2001, a Consolidated and Amended Class Action Complaint was filed. On November 2, 2001, after a briefing by the parties, the Court issued an Order denying in part and granting in part Defendants’ motion to dismiss the Action. The Court sustained the claim relating to Turkcell’s
churn rate but dismissed plaintiffs’ claim concerning non-disclosure of Turkcell’s second quarter 2000 results in the Prospectus. On February 6, 2004, Lead Plaintiff and Defendants entered into a Stipulation of Settlement settling the claims against Defendants for $19,200,000.
This purported class action lawsuit was initiated in the United States District
Court for the Southern District of New York against Turkcell and two of its past and present officers and directors on November 22, 2000. The lawsuit commenced accusing the defendants of misleading the investing public in registration statements filed with the SEC prior to the offering. Specifically, the complaint says Turkcell’s prospectus said it was losing customers at a rate of less than 0.1% a year when the true rate was at least 30 times greater than that.