According to the docket, on July 8, 2003, the Court entered the Memorandum regarding the Final Approval of the Proposed Settlement and Plan of Allocation. Specifically, the court granted approval of the proposed settlement and plan of allocation, certified the class, and awarded attorney fees from the common fund in the amount of $455,158.433, or 25% of the fund, and reimbursement of expenditures totaling $103,572.44. On July 14, 2003, the Court further entered the Final Judgment and Order, and the case was terminated.
In a press release dated January 6, 2003, pursuant to an Order of the United States District Court for the Central District of California, a hearing will be held on February 3, 2003, at 9:30 a.m., before the Honorable Gary A. Feess, in Courtroom 740 of the Edward Roybal Center & Federal Building, 255 East Temple Street, Los Angeles, California for the purpose of determining: (1) whether the proposed settlement of the claims in the Litigation for $ 1,820,633.34 should be approved by the Court as fair, just, reasonable and adequate; (2) whether, thereafter, the Litigation should be dismissed with prejudice as set forth in the Stipulation of Settlement dated as of October 24, 2002; (3) whether the Plan of Allocation is fair, just, reasonable and adequate and therefore should be approved; and (4) whether the application of Plaintiffs' Lead Counsel for the payment of attorneys' fees and reimbursement of costs and expenses incurred in connection with the Litigation should be approved.
The original complaint was filed charging certain of Stan Lee Media's officers and directors with violations of Sections 10(b) and 20(a) of the Securities Act of 1934 arising from defendants' issuance of materially false and misleading statements regarding the nature of Stan Lee Media's revenues, earnings, and financial condition. Defendants' misrepresentations and omissions, the complaint alleges, caused the price of the securities of Stan Lee Media to be inflated during the class period. As the complaint alleges, defendants' alleged misconduct came to light when defendants revealed, in December 2000 and January 2001: (i) that Stan Lee Media could not obtain necessary financing (which financing, according to previous statements made by the defendants, had already been secured); (ii) that trading in Stan Lee Media securities had been halted by Nasdaq; (iii) that the SEC had initiated an inquiry into the trading of Stan Lee Media shares by certain unnamed investors; and (iv) that possible misuse of company funds by certain Stan Lee executives had been discovered.
NOTE: As a result of Stan Lee Media filing for bankruptcy on February 16, 2001, in the United States Bankruptcy Court for the Central District of California, San Fernando Valley Division, Stan Lee Media could not be named as a defendant in the litigation.