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Case Status:    SETTLED
On or around 09/06/2005 (Date of order of final judgment)

Filing Date: March 09, 2004

By the Final Judgment and Order of Dismissal entered on September 6, 2005, the settlement as set forth in the Stipulation of Settlement dated April 25, 2005, is approved, and the action is dismissed with prejudice. Further, the Plan of Allocation is approved as fair and reasonable, and Plaintiffs’ Counsel are awarded twenty-five (25%) of the Gross Settlement Fund, specifically $562,500 in cash and stock and 375,000 in Settlement Shares, plus interest, and $77,715.73, plus interest, in reimbursement of expenses.

According to a press release dated April 28, 2005, Zomax Incorporated announced that it has signed an agreement to settle, without admission of liability, the class action lawsuit pending against the Company relating to alleged securities law violations in 2000.The agreement, which is dependent upon the completion of certain discovery by the plaintiffs' counsel and final approval by the United States District Court in Minneapolis, resolves all shareholder class members' claims against the Company and certain of its former officers. The agreement calls for$2.25 million to be paid in cash by the Company's directors' and officers' insurer and the issuance by the Company of 1.5 million shares of its common stock.

The lawsuit charges Zomax and certain of its officers with violations of securities laws regarding false and misleading statements made to the public and the failure to disclose material events during the class period. Specifically, the complaint alleges that Defendants issued a series of positive statements regarding both demand for Zomax’s products and the expected margins on its sales of CDs and DVDs. In fact, by the beginning of the class period, there was a decline in demand, particularly from its largest customer, Microsoft, as well as price pressure from nearly all of Zomax's key customers. Throughout August 2000, while Defendants continued to issue false and misleading statements, Individual Defendants began unloading massive sums of Zomax common stock.

The complaint further alleges on or around September 21, 2000, Zomax surprised the market by announcing that its third quarter 2000 financial results would be lower than what the Company had been falsely touting. As a result of this news, shares of Zomax common stock fell by 52.16%, or $9.06 per share, to close at $8.31 per share on extremely heavy volume on September 22, 2000.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ZOMX
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: D. Minnesota
DOCKET #: 04-CV-01155
JUDGE: Hon. Donovan W. Frank
DATE FILED: 03/09/2004
CLASS PERIOD START: 06/06/2000
CLASS PERIOD END: 09/21/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  2. Zimmerman Reed, LLP
    1100 IDS Center, 80 South 8th Street , Zimmerman Reed, LLP, MN 55402
    612.341.0400 612.341.0844 · info@zimmreed.com
No Document Title Filing Date
COURT: D. Minnesota
DOCKET #: 04-CV-01155
JUDGE: Hon. Donovan W. Frank
DATE FILED: 08/13/2004
CLASS PERIOD START: 05/25/2000
CLASS PERIOD END: 10/18/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  2. Zimmerman Reed, LLP
    1100 IDS Center, 80 South 8th Street , Zimmerman Reed, LLP, MN 55402
    612.341.0400 612.341.0844 · info@zimmreed.com
No Document Title Filing Date