By the Order and Final Judgment entered on December 7, 2006, signed by U.S. District Judge Anita B. Brody, the settlement is approved and the action is dismissed with prejudice. Further, according to the Order, the plan of allocation is approved. The lead plaintiffs were each awarded $1000.00 for reasonable costs and expenses. The lead plaintiffs’ counsel is awarded 27.5% of the gross settlement in fees and $31,384 in reimbursement of expenses.
According to a press release dated September 18, 2006, pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the above Court dated August 24, 2006, that a hearing will be held on November 21, 2006 at 9:30 a.m. in Courtroom 7-B, United States Courthouse, 601 Market Street, Philadelphia, PA 19106-1797 to determine (1) whether the proposed settlement (the "Settlement") of the above-captioned action ("Action") for $2,950,000 in cash plus accrued interest (the "Settlement Fund") should be approved by the Court as fair, reasonable, and adequate; (2) whether the motion of Lead Plaintiffs' Counsel for an award of attorneys' fees and reimbursement of expenses should be approved; and (3) whether the Action should be dismissed with prejudice.
On February 27, 2006, the Court entered and Order granting the motion to appoint Jeffery K. Ramsey and Mark Madden as lead plaintiffs and further granting lead plaintiffs’ selection of the Rosen Law Firm P.A. as lead counsel and Jacob A. Goldberg, Esq. LLC as liaison counsel. On May 28, 2006, a First Amended Class Action Complaint was filed.
The original Complaint alleges that Pegasus and certain of its management violated §10b and Rule 10b-5 of the federal securities laws by failing to disclose its "exclusive" distribution rights for DirecTV services could be terminated without cause prior to 2008. On June 2, 2004 Pegasus disclosed that its exclusive rights to distribute DirecTV services had been terminated. That same day certain Pegasus' operating subsidiaries filed for bankruptcy protection, damaging investors.