Daisytek International Corporation ("Daisytek" or the Company) is a distributor of computer and office supplies.

The original Complaint charges Daisytek and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Complaint alleges violations of the federal securities laws arising out of Defendants' issuance of false and misleading statements about the Company's business, operating performance and prospects. Specifically, Defendants were improperly accounting for uncollectible customer accounts receivables and vendor rebates receivables to inflate the Company's results. Due to Daisytek's favorable reported results, Defendants were able to secure financing essential to the Company. The Company subsequently disclosed it would record "significant" write-downs of customer and vendor receivables and inventory and large restructuring charges. On this news, the Company's stock dropped to $0.53. The Company subsequently announced the resignation of its CEO and its CFO.

By the Notice of Pendency and Proposed Settlement of Class Action dated March 17, 2005, a settlement hearing was scheduled for July 20, 2005. The purpose of the Settlement Hearing was to determine: (1) whether the settlement consisting of $6,000,000 in cash plus accrued interest should be approved as fair, just, reasonable, and adequate to each of the parties; (2) whether the proposed plan to distribute the settlement proceeds (the “Plan of Allocation”) is fair, just, reasonable, and adequate; (3) whether the application by Plaintiffs’ Counsel for an award of attorneys’ fees and reimbursement of expenses should be approved and the expenses of lead Plaintiffs reimbursed; and (4) whether the Litigation should be dismissed with prejudice.

According to the same Notice, on June 3, 2003, Daisytek filed a petition under Chapter 11 of the United States Bankruptcy Code and on October 16, 2003 the Litigation as against Daisytek was severed and stayed.

According to the Final Judgment and Order of Dismissal, entered on July 21, 2005, and signed by U.S. District Judge Paul N. Brown, the settlement is approved and the action is dismissed with prejudice. That same day, the Court further entered Orders approving the Plan of Allocation of settlement proceeds and awarding lead Plaintiffs’ Counsel’s fees and reimbursement of expenses.