According to the docket, on February 25, 2002, the Fairness Hearing was held before U.S. District Judge Walker D. Miller. Judge Miller signed the Order and Final Judgment, approving the settlement and dismissing the case with prejudice and without costs except as provided in the stipulation. On July 24, 2003, the Court entered the Order granting the motions for distribution of the settlement and for an award of attorney fees and reimbursement of expenses.
By the Notice Of Pendency Of Class Action, a Settlement Fund consisting of an aggregate amount of $5,000,000 in cash, plus interest, has been established. Pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of Court dated April 30, 2002, a hearing will be held before the Honorable Walker D. Miller in the United States Courthouse, 1929 Stout Street, Denver, Colorado 80294, at 1:30 p.m. on July 25, 2002 (the "Settlement Fairness Hearing") to determine whether a proposed settlement (the "Settlement") as set forth in the Stipulation and Agreement of Settlement dated on or about March 6, 2002 (the "Stipulation"), is fair, reasonable and adequate, and to consider the proposed Plan of Allocation for the Settlement proceeds and the application of Plaintiffs' Counsel for attorneys' fees and reimbursement of expenses. By order dated April 30, 2002, the Court certified the Settlement Class for purposes of settlement only.
On September 7, 2001, the plaintiff filed an Amended Consolidated Class Action Complaint, and on October 22, 2001, the defendants filed a motion to dismiss the amended consolidated class action complaint. On March 22, 2002, a Stipulation of Settlement was filed.
The original complaint charges New Era of Networks, Inc. and certain of its officers with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934 by reason of material misrepresentations and omissions. The complaint alleges that certain officers and directors issued false and misleading statements concerning the Company's financial results for the third quarter 2000. The Company did not disclose during the Class Period, but later acknowledged in an SEC filing, that the record revenues and earnings reported for its third quarter 2000 resulted from the Company's practice of selling software to companies in exchange for equity in its customers and booking the sales as non-cash revenue. Disclosure of this previously concealed information caused the Company's stock to plummet over 50% on November 21, 2000.