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Case Status:    SETTLED
On or around 04/04/2005 (Date of order of final judgment)

Filing Date: March 04, 2003

By the Final Judgment and Order of Dismissal with Prejudice entered on April 4, 2005, U.S. District Judge William G. Young approved the settlement set forth in the Stipulation of Settlement as fair, reasonable and adequate. All claims were dismissed with prejudice. The Court further issued two Orders that day approving the Plan of Allocation of Settlement Proceeds and awarding of the attorneys’ fees and reimbursement expenses. According to Ionics Inc.’s Form 10-Q for the quarterly period ended September 30, 2004, a $3 million settlement fund, to be paid entirely by the Company's insurer.

The original complaint charges Ionics, its Chief Executive Officer, and Chief Financial Officer with violations of the federal securities laws relating to the restatement of the Company's financial statements for the first and second quarters of 2002 announced in November 2002. Ionics develops and manufactures systems and provides related services for water treatment. The Company also produces desalination, water and wastewater treatment systems and instruments.

Specifically, the complaint alleges that throughout the Class Period, defendants issued numerous statements and filed quarterly reports with the SEC which described the Company' s increasing financial performance. These statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (i) that the Company had materially overstated its net income and earnings per share; (ii) that the Company' s drench subsidiary was not performing to the Company 's expectations and was generating substantial losses; (iii) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iv) that as a result, the value of the Company's net income and financial results were materially overstated at all relevant times .

The complaint further alleges that on or around November 4, 2002, the Company shocked the market by announcing that it would be restating its financial results for the first and second quarters of 2002 "primarily as a result of intercompany transactions between the Company and its French subsidiary that were erroneously recorded at the subsidiary level." Following this announcement, shares of Ionics fell $5.01 per share, or more than 20%, to close at $19.46 per share on volume of more than 1.7 million shares traded, or almost thirty times the average daily volume.

COMPANY INFORMATION:

Sector: Technology
Industry: Scientific & Technical Instr.
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ION
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Massachusetts
DOCKET #: 03-CV-10393
JUDGE: Hon. William G. Young
DATE FILED: 03/04/2003
CLASS PERIOD START: 05/06/2002
CLASS PERIOD END: 11/04/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley Geller, Bowman Coates & Rudman, LLP (Boca Raton, FL)
    One Boca Place. 2255 Glades Road, Suite 421A, Cauley Geller, Bowman Coates & Rudman, LLP (Boca Raton, FL), FL 33431
    561.750.3000 561.750.3364 ·
  2. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  3. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  4. Shapiro Haber & Urmy LLP (Boston)
    75 State Street, Shapiro Haber & Urmy LLP (Boston), MA 02109
    617.439.3939 617.439.0134 · info@shulaw.com
No Document Title Filing Date
COURT: D. Massachusetts
DOCKET #: 03-CV-10393
JUDGE: Hon. William G. Young
DATE FILED: 08/25/2003
CLASS PERIOD START: 10/25/2001
CLASS PERIOD END: 03/14/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    200 Broadhollow, Suite 406, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@lerachlaw.com
  3. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  4. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
No Document Title Filing Date