According to the docket, on April 6, 2005, the Court entered the Final Judgment and Order granting the motion for settlement and awarding plaintiffs’ counsel fees. The civil case was terminated. Recently, on September 18, 2006, the Court entered the Order granting the motion for Disbursement of Funds. According to the lead counsel’s website, the settlement fund was in the amount of $1.2 million.
On September 26, 2002, the Court entered the Order signed by Judge Joseph A. Greenaway, Jr. granting the motion to consolidate cases and appointing lead plaintiffs and lead counsel. On November 13, 2002, the plaintiffs filed a First Amended Consolidated Complaint, and the defendants responded by filing a motion to dismiss. On September 30, 2003, the Court entered the Order granting the motion to dismiss with leave to file an amended complaint. On October 29, 2003, the plaintiffs filed a Second Amended Complaint, and the defendants responded by filing a motion to dismiss. On December 1, 2004, a motion for preliminary approval of settlement was filed, and later approved by the Order entered on January 4, 2005.
The original complaint charges that Meyerson and certain of its officers and directors violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between February 28, 2000 and April 9, 2002. Meyerson is a NASD registered broker/dealer and investment banking firm. The complaint alleges that Meyerson failed to disclose in its required Securities & Exchange Commission ("SEC") filings material facts regarding pending litigation, including among other cases, that the Company neglected to disclose that it was the subject of a pending arbitration claim that ultimately resulted in a $5.0 million award against Meyerson. The complaint further alleges that Meyerson misrepresented in its SEC filings that it was the 50.0% owner of a financial software company, TradinGear.com, Inc. In fact, neither Meyerson, nor Emeyerson, ever held more than 5.0% of TradinGear's stock. Moreover, the complaint alleges that Meyerson concealed from investors the fact that it was significantly behind in its plans to launch the Emeyerson online business, which was ultimately folded into another failing ecommerce venture. As a result of these misstatements and non-disclosures, according to the complaint, the Company's financial reports filed with the SEC throughout the Class Period were materially false and misleading, thereby artificially inflating the price of Meyerson securities.