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Case Status:    SETTLED
On or around 11/05/2008 (Date of stipulation and/or agreement of settlement)

Filing Date: June 07, 2006

According to a press release dated December 12, 2008, a hearing will be held on February 25, 2009, at 2:00 p.m., before the Honorable Rya W. Zobel at the John Joseph Moakley United States Courthouse, One Courthouse Way, Courtroom 12, Boston, Massachusetts 02210, for the purpose of determining: (1) whether the proposed settlement of the claims in the litigation described in the detailed Notice of Pendency and Settlement of Class Action (the “Notice”) for the sum of $3,600,000 in cash (the “Settlement Fund”) should be approved by the Court as fair, reasonable and adequate; (2) whether, thereafter, this litigation should be dismissed with prejudice as set forth in the Stipulation of Settlement dated as of November 3, 2008 (the “Stipulation”); (3) whether the plan of allocation is fair, reasonable and adequate and therefore should be approved; and (4) whether the application of Plaintiffs’ Counsel for the payment of attorneys’ fees and expenses incurred in connection in this litigation should be approved.

The judge entered a preliminary approval order and set a fairness hearing for February 25, 2008.

On November 5, parties filed a Stipulation of Settlement. The deal involves a $3,600,000 cash payment, paid through Xerium's D&O insurance policy, to the class in exchange for dismissal of claims against it and its officers.

Defendants filed a motion to dismiss the consolidated complaint on December 8, 2006, which was denied in May 2007. The defendants then provided an answer to the complaint against them on June 8, 2007. Discovery continues as of August 20, 2008.

On September 22, 2006, the Court entered the Order appointing lead plaintiff and approving selection of lead and liaison counsel. On November 3, 2006, the plaintiffs filed an Amended Class Action Complaint.

The complaint charges Xerium and certain of its officers and directors with violations of the Securities Act. Xerium engages in the manufacture and supply of consumable products used in the production of paper.

Specifically, the complaint alleges that the Prospectus and Registration Statement (the "Prospectus") issued in connection with the Company's Initial Public Offering ("IPO") on or about May 16, 2005, contained untrue statements of material facts, omitted to state other facts necessary to make the statements made not misleading and was not prepared in accordance with the rules and regulations governing its preparation. Specifically, the complaint alleges that, at the time of the IPO, Xerium was undergoing "Cost Reduction Programs" which were negatively impacting its business and forcing it to have customers seek out other producers. Among other things, the Prospectus purported to warn about the potential negative impact of these programs but failed to disclose that the Company's business was then being negatively impacted by the Cost Reduction Programs and the loss of business associated therewith.

The complaint further alleges that on or around November 14, 2005, Xerium issued a press release announcing its financial results for the third quarter of 2005, the period ending September 30, 2005. The Company also reported that its cost reduction programs had severely impacted its results, causing the Company to experience declining net income. In response to this announcement the price of Xerium common stock dropped from $9.51 per share to $6.85 per share on extremely heavy trading volume.

COMPANY INFORMATION:

Sector: Consumer Cyclical
Industry: Textiles - Non Apparel
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: XRM
Company Market: New York SE
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. Massachusetts
DOCKET #: 06-CV-10991
JUDGE: Hon. Rya W. Zobel
DATE FILED: 06/07/2006
CLASS PERIOD START: 05/16/2005
CLASS PERIOD END: 11/15/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  2. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
  3. Howard G. Smith, Attorney at Law
    3070 Bristol Pike, Suite 112, Howard G. Smith, Attorney at Law, PA 19020
    215.638.4847 215.638-4867 ·
  4. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  5. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
  6. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
No Document Title Filing Date
COURT: D. Massachusetts
DOCKET #: 06-CV-10991
JUDGE: Hon. Rya W. Zobel
DATE FILED: 11/03/2006
CLASS PERIOD START: 05/16/2005
CLASS PERIOD END: 11/15/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abraham, Fruchter & Twersky (New York, One Pennsylvania Plaza)
    One Pennsylvania Plaza, Suite 1910, Abraham, Fruchter & Twersky (New York, One Pennsylvania Plaza), NY 10119
    212.279.5050 212.279.3655 · JFruchter@FruchterTwersky.com
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date