According to the Stipulation and Order of Dismissal entered on March 27, 2002, the action was dismissed with prejudice and without prejudice as to certain plaintiffs. Specifically, according to Exhibit 1, there are too many differences in the legal and factual theories applicable to each customer for the case to be pursued appropriately on behalf of all class members equally. Furthermore, there is a substantial interest among many of the Individually Represented Plaintiffs in individually controlling the prosecution of separate claims due to factors pertaining to individual suitability and variant damages. As a result, the Court has given approval for the class action to be dismissed. The Individually Represented Plaintiffs have agreed to individually-tailored and individually negotiated settlements with J.C. Bradford, and as to them, the case will be dismissed with prejudice. As to all other potential class members, who have not been individually represented in the case, and who have not reached a settlement with J.C. Bradford, the case is being dismissed without prejudice, meaning that those class members' rights have not been affected.
The Complaint alleges that, during the Class Period, defendant W. Bishop Kelley, Jr., with the knowledge, assistance and participation of the other Defendants and in conspiracy with MSGI and its controlling officer and director and others, orchestrated a scheme to defraud customers of Bradford (who subsequently became customers of PWG and PWI) in the purchase of MSGI common stock. In sum, the alleged scheme entailed the activities of Kelley, in conspiracy with MSGI and certain of its affiliates, to manipulate and support
or increase, to artificial levels, the market price of MSGI stock, to conceal from Class Members at the times of the purchase of MSGI stock in their accounts the complete adverse financial information about MSGI and its prospects, to engage in a pattern and practice of putting customer accounts into MSGI stock
without compliance with discretionary account trading requirements and without compliance with the suitability rule and without proper pre-purchase disclosures, and the corporate defendants' breaches of their duties of supervision and prevention of Kelley's wrongful activities. The alleged scheme also included the concealment of the material omitted facts. The Complaint alleges that as a result of the foregoing, MSGI stock was wrongfully purchased
in, and for, the accounts of Plaintiffs and Class Members at artificially high levels, causing a loss to Plaintiffs and Class Members when true facts about MSGI became known and when price manipulation activities were terminated or discovered.