According to the docket, on June 21, 2002, the Court entered the Order administratively closing the case as the parties reached a settlement agreement in principle. On October 31, 2002, two Stipulations and Agreements of Settlement were filed by the Individual Defendants and by KPMG LLP for $14 million and $1.95 million, respectively. On January 13, 2003, a settlement conference was held. The settlements were approved and Judgments were entered on January 15, 2003, with respect to the Individual Defendants and KPMG.
On June 27, 2000, Court entered the Order by U.S. District Judge Thomas M. Shanahan transferring the case to the District of Delaware for referral to the U.S. Bankruptcy Court where the defendant’s bankruptcy case is pending. The case was terminated for statistical purposes. InaCom is no longer named
as a defendant herein due to the automatic stay provisions of the federal bankruptcy code. On December 15, 2000, a Consolidated Amended Class Action Complaint was filed. On February 28, 2002 and May 20, 2002, the Court entered the Order denying, with leave to renew upon failure of settlement, the Defendants’ motions to dismiss the Consolidated Amended Class Action Complaint
The lawsuit charges Inacom and several of its top officers and directors with violations of the securities laws and regulations of the United States. Specifically, the complaint alleges that the Company issued materially false and misleading statements regarding its ability to recognize growth and remain profitable in light of significant changes in manufacturers' distribution of computers, which defendants knew or recklessly disregarded. On January 4, 2000, the Company announced that it was selling its products business. Upon this announcement, the Company's stock price plunged approximately 25 % to $5.00 per share.