According to the Order and Final Judgment, entered on November 30, 2005, from U.S. District Judge Honorable Marianne O. Battani of the U.S. District Court for the Eastern District of Michigan, the case is settled. The action is dismissed with prejudice and without costs, except as provided in the Stipulation. Further, the Plan of Allocation is approved, and Plaintiffs’ Counsel are awarded 27% of the Gross Settlement Fund in fees, and $84,198.65 in reimbursement of expenses.
By the Notice of Pendency dated July 29, 2005, the settlement in In re Comerica, Inc./Imperial Bancorp Securities Litigation, Case No. 02-CV-60211 will provide a $6.0 million settlement fund for the benefit of investors who held Imperial Bancorp shares and received Comerica stock as a result of the merger between Imperial and Comerica on January 29, 2001, or who purchased, held, received or otherwise acquired shares traceable to the merger share exchange. The Court will hold a Final Settlement Hearing on Monday, October 24, 2005. At this hearing the Court will consider whether the settlement is fair, reasonable and adequate. At the Final Settlement Hearing, the Court also will consider the proposed Plan of Allocation for the proceeds of the Settlement and the application of Plaintiffs’ Lead Counsel for attorneys’ fees and reimbursement of expenses.
The original complaint charges Comerica and certain of its executive officers with issuing false and misleading statements concerning the Company's business and financial condition. Specifically, the complaint alleges that Defendants artificially inflated Comerica's revenue by overstating the value of its Munder Capital Management subsidiary and under-accruing Comerica's loan loss reserves. Defendants' material misrepresentations and omissions were revealed on October 2, 2002, when the Company disclosed that Comerica would reduce its second- and third-quarter 2002 earnings, reflecting a $213 million after-tax charge for additional loan loss reserves and the decline in the Munder subsidiary's value.
The class action has been filed on behalf of purchasers of common stock of Comerica, Inc. between January 30, 2000 and October 1, 2002, inclusive, as well as all persons who received shares of Comerica, Inc. as a result of Comerica's acquisition of Imperial Bancorp and who sold those shares as a loss or retained their Comerica holdings through October 1, 2002.