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Case Status:    SETTLED
On or around 04/29/2004 (Date of order of final judgment)

Filing Date: October 15, 2001

According to a press release dated May 4, 2004, the Company announced that on April 29, 2004, the United States District Court for the District of Colorado (the "Court") entered a Final Order and Judgment approving the settlement of the class action that had been pending since October 2001 against the Company, two officers and directors and one former officer and director (the "Defendants"). The Defendants settled the class action while continuing to deny any liability in connection with the asserted claims. A settlement in principle was reached between the parties during a settlement conference in November 2003. The Court granted preliminary approval of the settlement on January 30, 2004, pursuant to which approval, notice of the class action and proposed settlement were distributed to applicable shareholders. The Court conducted a hearing on the proposed settlement on April 23, 2004. No members of the class opted out of the class or objected to the proposed settlement. In accordance with the settlement agreement, the Defendants will pay to the class a total of $1,000,000, from which will be deducted certain administrative costs and awards made to the named Plaintiffs and to Plaintiff's counsel for attorneys' fees and costs. The Company expects that the settlement amount will be derived from proceeds of the Defendants' liability insurance coverage.

The original Complaint alleges that Sport-Haley and certain of its officers and directors with violations of Section 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The complaint alleges that during
the Class Period, Sport-Haley continually reported artificially inflated
earnings via false and misleading press releases and filings with the Securities and Exchange Commission ("SEC"). As a result, on October 16, 2000, the company announced that it would be forced to restate its financial statements for the 1998 and 1999 fiscal years. This disclosure prompted the NASDAQ to suspend trading of Sport-Haley stock. It also prompted the SEC to commence an informal inquiry. On November 6, 2000, the company announced the extent of its restatements. Specifically, defendants admitted that they had materially overstated the company's earnings for the 1996, 1997, 1998 and 1999 fiscal years, and that the company would restate its net income for the year ended June 30, 1998, from $4.3 million to $2.5 million, and from $814,000 to $147,000 for the year ended June 30, 1999. When the NASDAQ finally resumed trading, the company's stock initially lost 37% of its value. Moreover, after receiving documents from the company and interviewing company employees, the SEC began a formal investigation into
possible violations of the federal securities laws.

COMPANY INFORMATION:

Sector: Consumer Cyclical
Industry: Apparel/Accessories
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SPOR
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Colorado
DOCKET #: 01-CV-02050
JUDGE: Hon. Lewis T. Babcock
DATE FILED: 10/15/2001
CLASS PERIOD START: 09/04/1996
CLASS PERIOD END: 10/16/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  2. Dyer & Shuman, LLP
    801 E. 17th Avenue, Dyer & Shuman, LLP , CO 80218-1417
    303.861.3003 800.711.6483 · info@dyershuman.com
No Document Title Filing Date
COURT: D. Colorado
DOCKET #: 01-CV-02050
JUDGE: Hon. Lewis T. Babcock
DATE FILED: 02/26/2002
CLASS PERIOD START: 09/04/1996
CLASS PERIOD END: 10/16/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Dyer & Shuman, LLP
    801 E. 17th Avenue, Dyer & Shuman, LLP , CO 80218-1417
    303.861.3003 800.711.6483 · info@dyershuman.com
No Document Title Filing Date