According to the docket, on August 23, 2004, the Court entered the Order and Final Judgment signed by U.S. District Judge Lynn Adelman. The Court certifies the action as a class action. The Settlement is approved as fair, reasonable and adequate, and the parties are directed to consummate the Settlement in accordance with the terms and provisions of the Stipulation. The Complaint is dismissed with prejudice and without costs, except as provided in the Stipulation, as against the Defendants. Plaintiffs' counsel are awarded attorneys' fees in the amount of $1,633,317.00 and $161,374.77 in reimbursement of expenses from the Settlement Fund. This case is closed.
By the Notice of Pendency of Class Action, Hearing on Proposed Settlement and Application For Attorneys’ Fees and Right to Share in Settlement Fund, a Settlement Fund consisting of $4,900,000 plus interest, has been established. Pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for the Eastern District of Wisconsin (the “Court”) dated June 18, 2004, that a hearing will be held before the Honorable Lynn Adelman in the United States District Courthouse, Eastern District of Wisconsin, 517 Wisconsin Avenue, Milwaukee, WI 53202, at 11:00 a.m. in Courtroom 390, on August 20, 2004 (the “Settlement Fairness Hearing”) to determine whether the Settlement of the Action as set forth in the Stipulation and Agreement of Settlement dated May 28, 2004 (the “Stipulation”), is fair, reasonable and adequate and to consider the proposed Plan of Allocation for the Settlement proceeds and the application of Plaintiffs’ Co-Lead Counsel for attorneys’ fees and reimbursement of expenses.
The original complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between March 9, 2000 and November 9, 2000, thereby artificially inflating the price of ShopKo securities. Throughout the Class Period, as alleged in the complaint, defendants issued statements concerning the integration of Pamida Holding Corp. ("Pamida"), Shopko's financial results and the Company's prospects. The complaint alleges that these statements were materially false and misleading because they failed to disclose, among other things, that ShopKo was experiencing significant shipping and inventory control problems at Pamida's distributions centers. On November 9, 2000, ShopKo issued a press release announcing its earnings for the third quarter of 2000 reporting a loss of ($0.23) per share - far below the $.02 to $.07 per share previously represented by the Company - and revealed that the Company was experiencing problems at Pamida's distribution centers and that those problems accounted for ShopKo's reduced earnings.