The original complaint, which names the Garment Capitol Associates as a nominal defendant, claims that defendants violated the anti-fraud provisions of the federal securities laws and committed breaches of fiduciary duty and fraud in relation to the solicitation. More specifically, the complaint alleges that defendants violated the Securities Exchange Act of 1934 under section 14(a) of the Exchange Act when they bundled three proposals into one item on a proxy statement despite that each proposal was a matter to be voted upon separately by the shareholders.
Defendants responded to the complaint with a motion seeking dismissal of the action in its entirety. The court granted that motion and dismissed the action by order and decision dated December 8, 1997.
Plaintiffs appealed that order, and later, the United States Court of Appeals affirmed in part and reversed in part the dismissal of the action. By order dated August 11, 1999, plaintiff's derivative claims were dismissed. The case was certified as a class action by order dated February 1, 2000 and was tried to the court and a trial jury beginning on September 18, 2000. On September 27, 2000, the trial jury returned a verdict for all defendants on all claims.
Plaintiff made a motion for judgment notwithstanding the verdict and for a new trial. By opinion and order dated January 17, 2001, the court denied plaintiff's motion for judgment notwithstanding the verdict and for a new trial, and plaintiff filed appeals from the jury verdict and the denial of those motions.
By opinion dated February 26, 2002, the Court of Appeals affirmed the judgment dismissing the complaint in all respects. Plaintiff did not take any further steps to pursue the action.
On July 02, 2002, the court entered a “Satisfaction of Judgment” in regard to the Court of Appeals decision in favor of defendants and against plaintiffs on September 27, 2000, since plaintiffs having appealed judgments, the judgments were affirmed. A final Stipulation and Order was entered on July 16, 2002 withdrawing the “Bill of Costs” dated April 15, 2002.