By the Order and Final Judgment entered on September 9, 2005, from the U.S. District Judge Mary M Lisi, the settlement is approved. Plaintiffs’ counsel are awarded $150,000.00 as fees & $545,533.10 as reimbursement for expenses.
According to a press release dated August 3, 2005, A.T. Cross Company announced that the United States District Court for the District of Rhode Island granted preliminary approval of an agreement to settle the securities class action litigation currently pending against the Company and certain present and former officers and directors. Under the terms of the proposed settlement, the class action litigation will be dismissed in exchange for an aggregate cash payment of $1.5 million. The settlement payment will be funded entirely by the Company's insurance carriers and will therefore have no impact to the Company's P&L. The settlement remains subject to the satisfaction of various conditions, including final approval by the U.S. District Court for the District of Rhode Island following notice to members of the class.
As summarized in the Company’s FORM 10-K for the fiscal year ended January 1, 2005, on June 30, 2000, the Company filed a Motion to Dismiss the action in the United States District Court in Rhode Island. The United States District Court for the District of Rhode Island granted the Company's Motion to Dismiss in June 2001. In July 2001, the Plaintiff filed an appeal with the First Circuit Court of Appeals. The appeal was before the First Circuit Court of Appeals. Oral argument was held February 8, 2002. On March 20, 2002, the Court of Appeals for the First Circuit issued a judgment affirming the dismissal of all claims asserted against the W. Russell Boss Jr. Trust A, W. Russell Boss Jr. Trust B and W. Russell Boss Jr. Trust C and reversing the District Court's dismissal of the Section 10(b) and 20(a) claims asserted against the Company and the named individual defendants. The Court of Appeals' ruling was limited to a finding that the plaintiff's complaint had satisfied the pleading requirements of the Private Securities Litigation Reform Act of 1995; the Court did not opine on the merits of plaintiff's claims. On January 8, 2004, the District Court heard oral argument on defendants' motion for summary judgment. On July 21, 2004, the Court issued its Memorandum and Order partially granting defendants' motion for summary judgment and narrowing the class period to encompass only purchases made between July 16, 1998 and April 22, 1999. Due to the revised class period, the plaintiff's two proposed class representatives no longer had standing to assert claims on behalf of the proposed class. The Court, however, allowed the plaintiff class an opportunity to recruit new class representatives. Discovery concerning plaintiff's proposed substitute class representatives is ongoing. The Company maintains that the claims are without merit and will continue to vigorously contest the litigation.
According to the same SEC filing, on or about April 21, 2000, the Company, certain officers and directors of the Company and others were named as defendants in an action filed in the United States District Court for the District of Rhode Island. The suit, which is brought by a purchaser of the Company's Class A common stock, alleges that the defendants violated Federal securities laws by making material misstatements and omissions in the Company's public filings and statements relating to the Company's former Pen Computing Group business. The suit seeks class action status including all purchasers of the Company's Class A common stock between September 17, 1997 and April 22, 1999. The damages sought are unspecified.