According to the complaint filed May 28, 2010, the Individual Defendants contemplated the sale of the Company as early as fall 2009. In fact, in early 2010, the Individual Defendants worked on a management-led buyout of the Company.
In February 2010, while the Individual Defendants were secretly negotiating the sale of the Company, members of the Compensation Committee approved the increase of the equity awards to senior executives for performance during the 2009 fiscal year to more than five times the previous year’s level. Importantly, the Compensation Committee approved the Grants despite the Company’s slew of negative publicity and performance concerns in the previous years, particularly the significant loss of stock value in 2009. Pursuant to the Grants, the Compensation Committee authorized the Company to issue to PSI’s five highest paid executives a combined 621,000 stock options and 688,000 shares of restricted stock. In contrast, during the 2009 fiscal year, the Compensation Committee awarded PSI’s five highest-paid executives a combined 120,000 stock options and 135,000 shares of restricted stock for their performance during 2008.
On June 14, 2010, an Individual and Amended Class Action Complaint was filed by the plaintiffs against the defendants.
On July 20, 2010, another Individual and Second Amended Class Action Complaint was filed by against the plaintiffs against all Defendants.
On August 23, 2010, The Court issued an Agreed Order Staying this case pending further Order of the Court.
On September 13, 2001, pursuant to Rule 41(a)(2) of the Federal Rules of Civil Procedure, the Court dismissed this action with prejudice.