According to the docket, after the Court entered the Final Judgment and Order approving the settlement and dismissing the claims, the plaintiffs filed a Notice of Appeal. On March 26, 2004, the Third Circuit Court of Appeals affirmed the US District Court’s Order, and on January 20, 2005, the Court entered the Order of Distribution of the Settlement Fund.
On August 20, 2001 and Defendants responded on December 27, 2001 with a Motion to Dismiss the Amended Complaint. Prior to a ruling on Defendants' Motion to Dismiss, the parties agreed to settle the action and entered into a Stipulation of Settlement on November 15, 2002. The terms of the proposed settlement create a Settlement Fund for the benefit of the Class in the amount of $10,000,000 in cash and will include interest that accrues on the fund prior to distribution. On December 11, 2002, Judge Joseph Greenaway, Jr. issued an order granting Preliminary Approval of the proposed settlement and certified the following class: All persons who purchased or otherwise acquired Nice ADSs during the period from November 3, 1999 to February 7, 2001, inclusive, other than Defendants. A hearing, to determine whether the proposed settlement is fair, reasonable and adequate, was held on March 31, 2003 and continued on April 7, 2003. On April 8, 2003, the Court entered an Order of Final Judgment approving the settlement.
The original federal class-action lawsuit charges defendants with securities fraud. The complaint accuses Nice System and two of its top officers of inflating the Company’s stock price by issuing false and misleading financial statements for its 1999 financial statements and the first three quarters of 2000. On February 8, 2001, Nice Systems announced that it would restate its financial statements for its 1999 fiscal year and the first three quarters of 2000 because of improper accounting.