On October 2, 2006, the Court entered the Judgment settling the case. The settlement was in the amount of $12.5 million. On November 9, 2006, the Court entered the Order awarding the attorneys’ fees and reimbursement of expenses. According to the Order, the Court grants an award of attorneys' fees to be paid from the Settlement Fund, equal to twenty percent (20%) of the Settlement Fund. The Court hereby grants Lead Counsel's application for reimbursement of expenses totaling $131,211.08 to be paid from the Settlement Fund.
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 Williams Litigation, 02-CV-8156 (BSJ). On October 15, 2003, a Consolidated Class Action Complaint was filed. On December 23, 2003, the defendants filed motions to dismiss the Consolidated Class Action Complaint with prejudice. On January 25, 2005, the defendants filed a renewed motion to dismiss the Consolidated Class Action Complaint.
The complaint charges Jack Grubman and Salomon Smith Barney, Inc. with violations of the Securities Exchange Act of 1934. Specifically, the complaint alleges that defendants issued and maintained "Buy" recommendations on WCG securities without any rational economic basis; failed to disclose that they were issuing and maintaining "Buy" recommendations to obtain investment banking business; and concealed significant, material conflicts of interest that prevented them from providing independent objective analysis.