On October 20, 2008, an Order and Final Judgment Of Dismissal was ordered, adjudged and Decreed by the court.
On August 8, 2008, an Order Preliminarily Approving Derivative Action Settlement was granted by the court.
On August 6, 2008, a stipulation and agreement of settlement was submitted to the court in the matter.
On March 7, 2008, a notice of appeal was submitted to the court by a member of the class objecting to the pending settlement.
According to a press release dated August 2, 2007, Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") and Arkansas Teacher Retirement System today announce that they have entered into a memorandum of understanding to settle, for a total of $28.5 million, the securities class action lawsuit against PharmaNet Development Group, Inc., (NASDAQ: PDGI) formerly known as SFBC International, Inc. (the "Company"), certain of the Company's former directors, officers and employees, and certain banks that acted as the Company's underwriters . The class action , pending in the United States District Court for the District of New Jersey, is led by Court-appointed Lead Plaintiff Arkansas Teacher Retirement System and is captioned In re SFBC International, Inc. Sec. Litigation, 06-cv-00165 (SRC). Under the settlement agreement, the class will be paid $28.5 million, of which $24.5 million will be in cash and $4 million may be either in cash or in stock, at the election of the Company. The settlement requires contributions from a number of different defendants, and specifically requires certain of the Company's former directors, officers and employees to make a personal contribution towards the settlement of the class' claims.
In a press release dated November 21, 2006, Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") announced that a consolidated class action complaint has been filed in the United States District Court for the District of New Jersey on behalf of Lead Plaintiff Arkansas Teacher Retirement System ("Arkansas Teachers") and all similarly situated purchasers of SFBC International, Inc. (k/n/a/ Pharmanet Development Group, Inc.) ("SFBC" or the "Company") formerly (NASDAQ: SFCC) now (NASDAQ: PDGI) securities during the period between August 4, 2003 and December 15, 2005 (the "Class Period"). The case is captioned In re SFBC International, Inc. Securities & Derivative Litig., Case No. 2:06-cv-00165, and is assigned to the Honorable Stanley R. Chesler.
The original complaint alleges that during the Class Period, the defendants SFBC and certain of its officers misrepresented SFBC's business conditions, prospects and financial results to public investors by touting the Company's strong revenue, earnings, and its ability to outperform competitors and obtain large contracts from drug companies, because of the large numbers of participants its facilities could handle, and its ability to quickly recruit participants for drug trials. The Company's financial success, however, was the result of business practices that were improper and reckless, and if discovered, would cause the Company to lose its credibility for accurate drug testing, and thus lose customers, expose the Company to fines and possible lawsuits from victims of faulty drugs, and face heavy regulation such that its ability to outperform competitors and quickly recruit large groups of participants could no longer be sustained.
The complaint further alleges that when the truth of defendants’ business practices was revealed to the market beginning on November 2, 2005, through the end of the Class Period on December 15, 2005, SFBC's stock price fell from $41.49 to $15.78, a staggering 61.9% drop.