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Case Status:    SETTLED
On or around 05/23/2005 (Date of order of final judgment)

Filing Date: February 19, 2003

On May 23, 2005, the Court entered the Order signed by U.S. District Judge Michael M. Baylson awarding attorneys’ fees in the amount of 30% of the settlement fund. The Court further entered the Order and Final Judgment certifying the action and approving the settlement. On February 13, 2006, the Court entered the Order authorizing the distribution of the class settlement fund.

According to the Notice of Proposed Settlement of Class Action, a Settlement Fund of $2,250,000 has been established. The Court will hold a Fairness Hearing at 4:00 p.m. on May 16, 2005, at the United States District Court for the Eastern District of Pennsylvania, 601 Market Street, in a courtroom posted on the Court’s schedule, Philadelphia, PA 19106. At this hearing the Court will consider whether the Settlement is fair, reasonable, and adequate.

On April 23, 2003, the Court entered the Stipulation and Order consolidating all related actions. On June 2, 2003, the Court entered the Order appointing the lead plaintiff and approved the selection of co-lead counsel. On August 5, 2003, the plaintiff filed an Amended Class Action Complaint and the defendants responded by filing a motion to dismiss. On January 12, 2005, a Stipulation and Agreement of Settlement was filed.

This lawsuit involves allegations concerning representations made by the Defendants regarding revenue and earnings forecasts for FAO, and its prospects as a successful ongoing concern after the integration of The Right Start, Inc., Zany Brainy, Inc. and
FAO Schwarz. Plaintiffs allege that Defendants made misrepresentations concerning these issues that caused the price of FAO stock to trade at artificially inflated levels during the Class Period, but that when the truth was revealed – that the Company’s
revenue for fiscal 2002 would be $95 million less than projected and that FAO was filing for bankruptcy – the stock price fell, resulting in harm to the Class Members.

NOTE: FAO filed for bankruptcy on December 4, 2003, and is therefore not named as a defendant in this action.

COMPANY INFORMATION:

Sector: Services
Industry: Retail (Specialty)
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: FAOO
Company Market: NASDAQ
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: E.D. Pennsylvania
DOCKET #: 03-CV-00942
JUDGE: Hon. Michael M. Baylson
DATE FILED: 02/19/2003
CLASS PERIOD START: 03/26/2002
CLASS PERIOD END: 12/29/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  2. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
COURT: E.D. Pennsylvania
DOCKET #: 03-CV-00942
JUDGE: Hon. Michael M. Baylson
DATE FILED: 08/04/2003
CLASS PERIOD START: 03/26/2002
CLASS PERIOD END: 12/16/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  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 ·
  3. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date