On May 19, 2006, the Court entered the Order preliminarily approving the settlement and scheduling a final settlement hearing for September 29, 2006. On the day of the settlement hearing, the Court approved the proposed class action settlement in the amount of $9,125,000, the plan of allocation and request for an award of attorneys' fees and reimbursement of expenses. On October 2, 2006, the Court entered the Final Judgment and Order of Dismissal, signed by U.S. District Judge Gerard E. Lynch, settling the action
On January 31, 2003, the Court entered the Order signed by U.S. District Judge Barbara S. Jones consolidating several actions into In re Salomon Analyst XO Litigation, 02-CV-8114 (BSJ). On October 15, 2003, an Amended Complaint was filed by lead plaintiffs, the Schutt Group. On December 23, 2003, the defendants filed a motion to dismiss the Amended Complaint with prejudice. On January 25, 2005, the defendants filed a renewed motion to dismiss the Amended Complaint. On August 22, 2005, the Court entered the Order withdrawing the defendants’ motion to dismiss, without prejudice to its reinstatement if the settlement is for any reason not consummated.
The original complaint charges the defendants with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants issued false and misleading statements which artificially inflated the stock. This action seeks to recover damages on behalf of defrauded investors who purchased XO securities.