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Case Status:    SETTLED
On or around 07/20/2007 (Date of order of final judgment)

Filing Date: January 31, 2005

On July 20, 2007 the judge entered a Final Order and Judgment cementing the settlement and dismissing the case with prejudice. Both parties agreed to a settlement amount of $14.94 million and the Court awarded lead counsel fees of 30% of the Settlement Fund and reimbursement of expenses in an aggregate amount of $531,085.07 together with the interest earned for the same time period and at the same rate as that earned on the Settlement Fund until paid. Lead Plaintiff John Dzaugis was awarded $7,300.00

According to a press release dated March 2, 2007, Direct General Corporation announced that it entered into a Memorandum of Understanding with other defendants and the plaintiffs to settle a consolidated class action pending in the United States District Court for the Middle District of Tennessee, Nashville Division, entitled In re Direct General Corporation Sec. Litig. The stipulated settlement amount is $14.94 million, which is apportioned to the defendants, and the plaintiffs agree to dismiss with prejudice all claims against all defendants to the action. The memorandum of understanding is subject to several conditions, including approval by the court. The parties to the action intend to submit a stipulation of settlement to the court seeking preliminary approval of the settlement.

On August 8, 2006, the Court entered the Order granting the motion to certify class.

On April 26, 2005, the Court entered the Order granting the motion to appoint the Structural Ironworkers Local Union #1 Annuity, Pension and Welfare Funds and John Dzaugis as lead plaintiffs and to approve lead plaintiff’s choice of Lerach Coughlin Stoia Geller Rudman & Robbins LLP as lead counsel. The motion for the consolidation of all related actions is also granted. On June 17, 2005, a Consolidated Amended Complaint was filed, and the defendants responded by filing motions to dismiss the Consolidated Amended Complaint. On November 9, 2005, the Court entered the Order granting in part and denying in part certain defendants’ motions to dismiss and granting in part another defendants’ motion to dismiss.

The original class action lawsuit has been filed on behalf of purchasers of the securities of Direct General Corp., seeking to pursue remedies under the Securities Exchange Act of 1934. Specifically, the complaint alleges that Defendants issued, or caused to be issued, false and misleading statements to artificially inflate the value of Direct General Stock. Specifically, Defendants concealed from the investing public the negative effect a change in the Florida Personal Injury Protection scheme would have on the Company's business operations. The Company also failed to properly reserve for its insurance losses as a result of the change in the Florida statute. While the stock's value was just a few dollars from its Class Period high, and almost $15 from its current price, Defendants and other insiders sold over 3.3 million shares for net proceeds of $108 million. Further, on or around January 26, 2005, the Company admitted that its current reserves were inadequate and disclosed for the first time the substantial impact the revised Florida PIP Statute was having on its operations.

COMPANY INFORMATION:

Sector: Financial
Industry: Insurance (Prop. & Casualty)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: DRCT
Company Market: NASDAQ
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: M.D. Tennessee
DOCKET #: 05-CV-00077
JUDGE: Hon. Todd J. Campbell
DATE FILED: 01/31/2005
CLASS PERIOD START: 08/11/2003
CLASS PERIOD END: 01/26/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Baron & Budd, P.C. (Dallas)
    3102 Oak Lawn Avenue, Suite 1100, Baron & Budd, P.C. (Dallas), TX 75219
    800-946-9646 · info@baronbudd.com
  2. Barrett, Johnston & Parsley
    217 Second Avenue, N, Barrett, Johnston & Parsley, TN 37201
    615.244.2202 ·
  3. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  4. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (New York, NY)
    825 Third Avenue - 30th Floor, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (New York, NY), NY 10022
    212.838.7797 212.838.7745 · lawinfo@cmht.com
  5. Dyer & Shuman, LLP
    801 East 17th Avenue, Dyer & Shuman, LLP, CO 80218-1417
    303.861.3003 800.711.6483 · info@dyershuman.com
  6. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  7. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Boca Raton)
    197 South Federal Highway, Suite 200, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Boca Raton), FL 33432
    561.750.3000 56.750.3364 · info@lerachlaw.com
  8. 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
  9. Milberg Weiss Bershad & Schulman LLP (Boca Raton)
    5355 Town Center Road, Suite 900, Milberg Weiss Bershad & Schulman LLP (Boca Raton), FL 33486
    561.361.5000 561.367.8400 · info@milbergweiss.com
  10. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  11. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  12. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  13. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  14. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 · IRRep@wolfpopper.com
No Document Title Filing Date
COURT: M.D. Tennessee
DOCKET #: 05-CV-00077
JUDGE: Hon. Todd J. Campbell
DATE FILED: 06/17/2005
CLASS PERIOD START: 08/11/2003
CLASS PERIOD END: 01/26/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrett, Johnston & Parsley
    217 Second Avenue, N, Barrett, Johnston & Parsley, TN 37201
    615.244.2202 ·
  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
No Document Title Filing Date
No Document Title Filing Date