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Case Status:    SETTLED  
—On or around 07/17/2013 (Date of order of final judgment)
Current/Last Presiding Judge:  
Hon. Joan A. Lenard

Filing Date: November 26, 2008

According to a press release dated November 26, 2008, Aracruz Cellulose S.A. ("Aracruz" or the Company) is a major Brazilian manufacturer of forest products, which they market to manufacturers of consumer paper products around the world.

During the Class Period, Aracruz entered into undisclosed currency derivative contracts to purportedly hedge against the Company's U.S. dollar exposure. The Company characterized the use of these contracts as protection against foreign interest rate volatility and assured investors that this type of trading did not represent "a risk from an economic and financial standpoint." However, these contracts violated Company policy in that they were far larger than necessary to hedge normal business operations. As a result of Aracruz's clandestine and speculative currency wagers, credit rating agencies downgraded Aracruz, the Company's CFO resigned, and Aracruz's stock suffered a severe decline, plummeting to the lowest levels in 14 years. On October 3, 2008, the price of the ADR's traded on the New York Stock Exchange closed at $23.40, down $7.84 per share, a decline of 25%. The Company's common stock suffered similar drastic declines on the Sao Paulo Bovespa.

On August 07, 2009, an order on Motions for lead Plaintiff status and for approval of selection of lead Counsel were decided. The court appointed the City Pension Fund for Firefighters and Police Officers in the City of Miami Beach as lead Plaintiff and the law firm of Saxena White P.A. was appointed lead Counsel.

On October 5, 2009, an amended Complaint was filed on behalf of the Plaintiffs.

On September 30, 2010, the Court issued an Order denying the Defendant's Motion to Dismiss.

On September 16, 2011, the Court issued an Omnibus Order and, among the various orders, affirmed its previous order Denying the Defendant's Motion to Dismiss dated September 30, 2010. The Court also granted in part and denied in part the individual Defendant's motions to dismiss, upholding claims under Section 20(a).

On November 21, 2012, the Court issued an Order granting the Parties' Joint Motion to Stay All Proceedings. The parties have reached a proposed settlement agreement, and this case is stayed and administratively closed.

On January 24, 2013 the parties entered into a Stipulation of Settlement. The Settlement was preliminarily approved on March 14. On July 17, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

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