Defendant Syntax-Brillian Corporation ("Syntax" or the Company) is a designer, developer and distributor of high definition televisions (HDTVs) in liquid crystal display (LCD) and liquid crystal silicon (LCoS) formats. The Company's HDTVs operate under the brand name Olevia. In November 2006, Syntax acquired Vivitar Corporation. In 2006-2007, it reported explosive growth due largely to reportedly increased sales to a Chinese distributor South China House of Technology.

According to a law firm press release, the Complaint charges that Syntax, its CEO and (now former) CFO misled shareholders through false statements about the Company's business prospects, operations, demand for the Company's products, and adequacy of internal controls. The Complaint alleges that throughout 2007, up to late August, the Company and Defendants issued a series of increasingly bullish statements about the Company's sales and revenues and prospects and also sold stock on two occasions in the midst of the bullish revenue and profit guidance statements. Plaintiffs allege that Syntax stock price was buoyed by these statements in the $6-$7 range, allowing Syntax to sell hundreds of millions of dollars of stock at inflated prices. On September 13, 2007, after disclosure of previously concealed omitted facts, including a failure of adequate accounting systems and an approximately 35% shortfall in previously anticipated revenues, the price of Syntax stock fell over 30%, causing loss and damage to all purchasers of Syntax stock on the open market.

According to the docket, Syntax filed a notice of bankruptcy with the court on July 8, 2008. As a result, the class action was stayed against Defendant Syntax with an order of dismissal planned for September 15, 2008 unless the bankruptcy court judge lifts the stay prior to the dismissal date.

Plaintiffs filed the first Amended Consolidated Complaint on August 25, 2008, dropping the Company as a Defendant and adding certain officers and the former Chairman of the Audit Committee to the Defendant list. Defendants filed motions to dismiss the Complaint on October 15, 2008.

In January 2009, the lead Plaintiff filed a motion and the an amended motion to certify the class. On February 4, 2009, Judge Frederick J. Martone issued the order granting in part and denying in part certain of the Defendants’ motions to dismiss the Complaint. The case entered into the discovery phase. On July 17, 2009, Judge Frederick J. Martone granted the Plaintiff’s amended motion to certify the class.

On September 8 and 17, 2009, the Defendants filed motions for summary judgment. Before any ruling on the motions, on November 3, 2009, the Plaintiffs filed a motion for preliminary approval of a class action settlement. According to the Stipulation and Agreement of Settlement, the Underwriter Defendants shall pay or cause to be paid the sum of $2,750,000 in cash, the Individual Defendants shall cause Syntax's directors and officers insurance carriers to pay the sum of $4,750,000 in cash, and Grobstein, Horwath & Company LLP shall pay or cause to be paid the sum of $2,500,000 in cash. On November 9, 2009, Judge Frederick J Martone preliminarily approved the settlement. The Settlement Hearing was then scheduled for February 12, 2010.

On January 11, 2010, an objection was filed to the proposed class action settlement, but on February 18, 2010, Judge Frederick J. Martone approved the settlement as set forth in the Stipulation and dismissed the action with prejudice. Judge Martone also signed the orders approving the plan of allocation and awarding attorneys’ fees and expense. According to the Order, the Court awarded lead Counsel attorneys' fees of 25% of the Settlement Fund and expenses in an aggregate amount of $1,086,705.67, together with the interest earned thereon for the same time period and at the same rate as that earned on the Settlement Fund until paid.