On September 5, 2007, the Court issued the Opinion and Order No. 95140. According to the Order, U.S. District Judge John F. Keenan certified the class action, approved the settlement, approved the Plan of Allocation and finalized the award of attorneys’ fees and expenses. On September 19, 2007, the Court entered the Order and Final Judgment for In re Merrill Lynch Research Reports Securities Litigation, 02 MDL 1484.
According to the Notice of Pendency and Proposed Settlement of Class Actions, dated March 19, 2007, for In re Merrill Lynch Research Reports Securities Litigation, In re Merrill Lynch & Co., Inc. Exodus Communications, Inc. Research Reports Securities Litigation, 02-CV-6914, is part of a proposed settlement of $125 million in cash. A settlement hearing will be held before the Honorable John F. Keenan, United States District Judge of the Southern District of New York to determine whether the settlement should be approved.
On December 20, 2002, the Court entered the Case Management Order #1. According to the Order, the actions filed on behalf of purchasers of the common stock of Exodus Communications, Inc. were consolidated and now carried out under In re Merrill Lynch & Co., Inc. Exodus Communications, Inc. Research Reports Securities 02-CV-6914(MP). On March 14, 2003, an Amended Complaint was filed and the defendants responded by filing a motion to dismiss. On June 2, 2006, the Court entered the Minute Order signed by Judge Michael B. Mukasey administratively closing the case pursuant to Memorandum from the Administrative Office of the United States Courts dated June 15th, 1973.
In October 2002, the Judicial Panel on Multidistrict Litigation granted the Merrill Lynch Defendants’ motion to transfer all such cases to the Southern District of New York for coordinated pre-trial proceedings. The cases were transferred to the Honorable Milton Pollack, Senior United States District Judge, and were coordinated under the caption In re Merrill Lynch Research Reports Securities Litigation, 02 MDL 1484.
The complaint alleges that defendants urged investors to purchase Exodus stock when defendants knew or recklessly disregarded that such purchases were not a good investment. The complaint alleges that defendants: issued "Buy" recommendations about Exodus without any rational economic basis; failed to disclose that they were issuing "Buy" recommendations to obtain investment banking business; and concealed significant, material conflicts of
interest that prevented them from providing independent objective
analysis. Between March 24, 2000 and September 26, 2001, Exodus stock
dropped from approximately $173.32 per share to less than $1 dollar per
share. During this time period, Merrill Lynch repeatedly reiterated its
Near-Term Buy/Long-Term Buy recommendation. After the NASDAQ suspended trading in Exodus common stock on April 26, 2001, Exodus voluntarily de-listed from NASDAQ and filed for Chapter 11 bankruptcy shortly
thereafter. Plaintiff seeks to recover damages on behalf of all those
who purchased or otherwise acquired Exodus common stock during the Class Period.