The original complaint charges Brantley and certain of its officers with violations of federal securities laws by making misrepresentations about the Company's valuation and financial statements. Brantley grossly overvalued its investment in a material asset. When properly valued, that asset was worth less than 1% when the Company valued it. As a result, the Company's stock fell from a Class Period high of approximately $12 per share to a price of approximately $2, and the Company has now started its intent to liquidate.
On June 4, 2007, the Court entered the Decision and Order granting the motion to transfer the case from the U.S. District Court for the Southern District of New York to the Northern District of Ohio. The Court further granted the motion to appoint Karpus Management, Inc. as lead plaintiff and approved lead plaintiff's selection of lead counsel.
On August 1, 2007, the lead plaintiff filed as Amended Complaint against all defendants. On September 21, 2007, the lead plaintiff filed a Second Amended Complaint. Soon after, the parties entered into settlement. On October 17, 2007, the Court entered the Order preliminarily approving the settlement and providing for notice. The settlement is in the amount of $3,750,000 in cash, plus interest. On December 17, 2007, the lead plaintiff filed a motion for final approval of the settlement. The Fairness Hearing was held before U.S. District Judge James S. Gwin on January 4, 2008. At the Hearing, Judge Gwin issued the Order approving the Plan of Allocation, granting fees and expenses and entered Judgment. The settlement was approved and the action dismissed with prejudice.