Case Page

 

Case Status:    SETTLED
On or around 09/23/2002 (Date of order of final judgment)

Filing Date: November 26, 2001

According to a press release dated October 25, 2002, Optical Cable Corporation announced that the consolidated class action securities lawsuit filed against Optical Cable Corporation, its former Chairman, CEO & President Robert Kopstein, and certain other officers and directors of the Company brought in the United States District Court for the Western District of Virginia (the "Court") has been dismissed with prejudice and the previously announced agreed upon settlement is final and binding. The settlement with members of the shareholder class, initially announced on June 26, 2002, provides for Optical Cable to pay $700,000 in cash, a portion of which was funded by insurance, and issue warrants to purchase 250,000 shares of common stock at an exercise price of $4.88 per common share (reflecting adjustments for the reverse split effected July 31, 2002). On September 23, 2002, U.S. District Judge James C. Turk entered an Order and Final Judgment approving the settlement and dismissing the shareholder class action lawsuit with prejudice. The Order and Final Judgment was subject to appeal for 30 days after being entered. Since no appeal was filed with the Court within 30 days, the settlement has become final and binding.

The original complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that during the Class Period, defendants issued to the investing public false and misleading information that materially misstated the Company's condition and prospects. Moreover, the Company failed to disclose material information necessary to make its prior statements not misleading. The complaint alleges that defendants violated the federal securities law by engaging in a conspiracy and/or course of conduct pursuant to which they made a series of materially false and misleading statements and failed to make and/or omitted necessary, required, accurate, and material statements concerning the business and financial operations of Optical Cable, Optical Cable common stock, and the holdings of Kopstein, with the intent and having the effect of substantially inflating the price of Optical Cable common stock. Specifically, the defendants made numerous positive statements as to the business and financial health of Optical Cable prior to and during the Class Period yet failed to disclose to the investing public Kopstein's use of his stock as collateral for margin loans with various brokerage accounts he maintained to speculate in technology stocks. Given Kopstein's control of 96% of the Company's common stock, his use of his Optical Cable stock as collateral created a significant risk that large numbers of these shares could be seized and sold on the open market by brokerage firms to cover Kopstein's trading losses. According to the complaint, Kopstein had been cautioned by at least one brokerage firm to not speculate by borrowing money against his Optical Cable stock to invest in other technology company securities. Kopstein's speculation in other technology companies securities led to the margin calls which then resulted in significant losses to the plaintiffs when the brokerage firms seized Kopstein's Optical Cable stock and dumped millions of shares on the market at the same time,
resulting in the severe depression of the Company's stock price.

COMPANY INFORMATION:

Sector: Basic Materials
Industry: Misc. Fabricated Products
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: OCCF
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: W.D. Virginia
DOCKET #: 01-CV-00937
JUDGE: Hon. James C. Turk
DATE FILED: 11/26/2001
CLASS PERIOD START: 07/31/2000
CLASS PERIOD END: 10/08/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Brian Felgoise
    230 South Broad Street, Suite 404 , Brian Felgoise, PA 19102
    215.735.6810 215/735.5185. ·
  3. 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
  4. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  5. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  6. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date
COURT: W.D. Virginia
DOCKET #: 01-CV-00937
JUDGE: Hon. James C. Turk
DATE FILED: 05/02/2002
CLASS PERIOD START: 07/31/2000
CLASS PERIOD END: 10/08/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley Geller Bowman & Coates, LLP (Little Rock, AR)
    11311 Arcade Drive, Suite 200, Cauley Geller Bowman & Coates, LLP (Little Rock, AR), AR 72212
    ·
  2. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
No Document Title Filing Date
No Document Title Filing Date