On May 18, 2006, the Court entered the Order and Final Judgment approving the settlement. On October 17, 2006, the Court further entered the Order granting the motion for attorney fees. Class counsel Scott & Scott, LLP, was awarded a total of $1,205,662.30 from the settlement fund; and the firm of Shalov, Stone & Bonner, LLP was awarded a total of $33,808.84 from the settlement fund.
According to a press release dated March 16, 2006, the action has been certified as a class action for settlement purposes only and that a Settlement valued at $7 million has been proposed. A hearing will be held before the Honorable Miriam Goldman Cedarbaum, U.S.D.J., in the Daniel Patrick Moynihan United States Courthouse, 500 Pearl Street, Courtroom 14A, New York, New York, at 10:00 a.m., on May 18, 2006, to determine whether the proposed Settlement should be approved by the Court as fair, reasonable, and adequate, and to consider the application of Lead Counsel for attorneys' fees and reimbursement of expenses.
On October 17, 2002, the Court entered the Stipulation and Order consolidating the cases. On February 19, 2003, the Court entered the Order appointing Casper 1 Management Inc. and Albert M. Pruss as lead plaintiffs for the class. On October 11, 2003, a Second Amended Consolidated Complaint was filed. On September 10, 2004, a Third Party Amended Consolidated Complaint was filed. The defendants responded by filing motions to dismiss, which were later withdrawn. On January 17, 2006, a motion for preliminary approval of the proposed settlement was filed.
The original complaint alleges that the defendants engaged in a massive accounting fraud and made material misrepresentations and omissions of material facts concerning the company's financial condition and business performance during the relevant time. According to the complaint, the defendants knew or recklessly disregarded that the company was overstating revenues and assets by a vast
amount during the Class Period. As a result, investors have suffered substantial losses. The lawsuit was filed in Federal Court in New York City.
NOTE: According to the complaint, 360Networks would be named a defendant in this action except that it has filed for protection under the United States bankruptcy laws.