On August 17, 2006, the Court entered the Judgment and Order of Dismissal settling the action. A Notice of Appeal was filed from the Judgment and later withdrawn.

According to the Notice of Pendency dated May 24, 2006, the proposed settlement is in the amount of $74,750,000 plus interest. A Settlement Hearing is scheduled for August 11, 2006.

On January 31, 2003, the Court entered the Order consolidating several actions under re Salomon Analyst AT&T Litigation, 02-CV-6801 (BSJ). On October 15, 2003, an Amended Complaint was filed. On October 15, 2003, an Amended Complaint was filed, and the defendants responded by filing a motion to dismiss the Amended Complaint on December 23, 2003. On December 3, 2004, the Court entered the Opinion and Order #90955 granting in part and denying in part the motion to dismiss the Amended Complaint. On January 25, 2005, the defendants again filed a motion to dismiss. On November 18, 2005, the Court entered the Order stating that the defendants' renewed motion to dismiss the complaint and plaintiffs' motion for leave to file sur-reply are deemed withdrawn, without prejudice to its reinstatement if the settlement is for any reason not consummated. On April 7, 2006, the Court entered the Order preliminarily approving settlement and scheduling a fairness hearing. On April 5, 2006, the Parties' Proposed Stipulation of Settlement was filed.

The complaint alleges that defendants recommended the purchase of AT&T common stock without regard to the factual basis and without disclosing its conflicts of interest. When issuing the analyst report, the Defendants Salomon and Grubman failed to disclose significant, material conflicts of interest, including the following: that, in an explicit or implicit quid pro quo, Salomon was granted a lucrative role in the April 2000 issuance of an AT&T Wireless tracking stock, after Grubman, at AT&T's request, passed to Grubman by Weill, raised his recommendation of AT&T in November 1999 from "neutral" to "buy."