Concord Camera Corp. ("Concord" or the "Company") (NASDAQ: LENS) designs, develops, manufactures and sells easy-to-use image capture products on a worldwide basis.

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 January 18, 2001 and June 22, 2001, thereby artificially inflating the price of Concord securities. The Complaint alleges that throughout the Class Period, Defendants issued a series of materially false and misleading statements which failed to disclose that (i) no less than $15,777,000, more than 45% of the Company's receivables, represented an unsecured and delinquent balance due from one single customer--KB Gear; (ii) this delinquent $15,777,000 receivable balance was uncollectible; and (iii) due to KB Gear's inability to pay for merchandise, the Company was stuck with a large quantity of customized higher-cost specialty components which had no alternative use and were non-salable.

The Complaint further alleges that on or around June 22, 2001, the last day of the Class Period, the Company issued a press release revising its fourth quarter guidance and disclosing for the first time that: (i) excess inventory positions at many of the Company's customers and the resulting changes in their purchasing patterns have adversely affected inventory sales; (ii) the Company will record the following one-time charges against income in the quarter: $15.8 million accounts receivable provision, $4.3 million inventory provision, $1.4 million restructuring charge; and (iii) the accounts receivable provision and $2.0 million of the inventory provision relate to a financially troubled former customer of the Company with respect to which management has concluded that workout efforts are not likely to be successful. In response to these disclosures, the price of Concord stock plummeted over 20% to close at $6.02.

As disclosed by the Company’s FORM 10-Q for the quarterly period ended December 31, 2005, on August 20, 2002, the Company filed a motion to dismiss the Complaint and in December 2002, the Company's motion was granted by the court and the Complaint was dismissed. In January 2003, an amended class action Complaint (the "Amended Complaint") was filed adding certain of the Company's current and former directors as defendants. The lead Plaintiffs in the Amended Complaint sought to act as representatives of a class consisting of all persons who purchased the Company's Common Stock (i) issued pursuant to the Company's September 26, 2000 secondary offering (the "Secondary Offering") or (ii) during the period from September 26, 2000 through June 22, 2001, inclusive. On April 18, 2003, the Company filed a motion to dismiss the Amended Complaint and on August 27, 2004, the court dismissed all claims against the Defendants related to the Secondary Offering. On September 8, 2005, the court granted the Plaintiffs' motion for class certification and certified as Plaintiffs all persons who purchased the Common Stock between January 18, 2001 and June 22, 2001, inclusive, and who were allegedly damaged thereby (the period January 18, 2001 through June 22, 2001 hereinafter referred to as the "Class Period"). Pursuant to a scheduling order of the court, trial in this matter was scheduled to commence on November 13, 2006.

The allegations remaining in the Amended Complaint are centered around claims that the Company failed to disclose, in periodic reports it filed with the SEC and in press releases it made to the public during the Class Period regarding its operations and financial results, that a large portion of its accounts receivable was represented by a delinquent and uncollectible balance due from then customer, KB Gear, and that a material portion of its inventory consisted of customized components that had no alternative usage. The Amended Complaint claims that such failures artificially inflated the price of the Common Stock. The Amended Complaint seeks unspecified damages, interest, attorneys' fees, costs of suit and unspecified other and further relief from the court.

On October 13, 2006, the parties entered into a Stipulation of Settlement. The Court granted preliminary approval of the Settlement on October 23. On January 26, 2007, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

On March 24, 2008, the Court issued an Order authorizing distribution of the Settlement funds.