According to the docket dated January 29, 2004, Order by Judge William H. Alsup terminates the case and approves plan of allocation of settlement proceeds. The notice of settlement dated September 09, 2003 states the settlement amount of $20,000,000 in cash less all attorneys’ fees and expenses to be paid to plaintiffs' counsel and costs of notice and administration of the settlement and will include interest that accrues on the fund prior to distribution.

The original complaint charges certain of NorthPoint's officers and directors with violations of the Securities Exchange Act of 1934. NorthPoint provides high speed local data network services. The company's networks use digital subscriber line technology to transport data at faster speeds than common dial-up modems. NorthPoint markets its network and data transport services to Internet service providers, broadband data service providers, and long-distance and local telephone companies. On Oct. 26, 2000, following the close of trading, NorthPoint announced its Q3 2000 financial results in a press release proclaiming that such results were the result of NorthPoint's "conservative revenue recognition policy." Then, on Nov. 20, 2000, NorthPoint announced that it would restate its Q3 2000 financial statements (which just one month prior the company claimed were based on "conservative" accounting) as a result of accounting misstatements that will require eliminating $6 million in revenue to be removed from the quarter for failing to comply with Generally Accepted Accounting Principles. Then, on Nov. 29, 2000, Verizon Communications withdrew from a merger agreement with NorthPoint, citing NorthPoint's deteriorating financial condition and false quarterly report as its reason. As such, Verizon would not continue to fund NorthPoint's operations leaving NorthPoint to operate on its own. NorthPoint's shares dropped to just pennies per share in response.

Note: Due to its Chapter 11 bankruptcy filing on January 16, 2001, these proceedings against NorthPoint are stayed as of the time of the filing of the Consolidated Complaint.