UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA Case No CIV-HUCK/O SULLIVAN

Transcription

1 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA Case No CIV-HUCK/O SULLIVAN x DENRA MAY, PHILIP MAY STEPHANIE MAY, MICHAEL NEWMAN, SCOTT JAMES, LEONARD GREEN, WENDY GREEN, BRETT FRIEDMAN, LANDON AGOADO, BRIAN NOONAN, TRENTON MARTIN, KATHRYN MARTIN, KRISTEN MARTIN, and DONNA AIKMAN, on behalf of themselves and all others similarly situated, Plaintiffs, -v- DAVID C. LEVY, LES GARLAND, MARC GELBERG, GREGORY R. CATINELLA, JOHN W. POLING, D. PATRICK LAPLATNEY, CELESTINE F. SPODEN, JOHN P. GRANDINETTI, and THE TUBE MEDIA CORP., Defendants x ORDER PROVISIONALLY GRANTING UNOPPOSED MOTION FOR APPROVAL OF CLASS ACTION SETTLEMENT AND AWARDING PLAINTIFFS LEAD COUNSEL ATTORNEYS FEES AND REIMBURSEMENT OF EXPENSES This matter came before the Court for hearing pursuant to the Preliminary Order in Connection with Settlement Proceedings (Preliminary Order, dated June 30, 2008, on the application of the Settling Parties for approval of the Settlement set forth in the Stipulation and Agreement of Settlement dated as of June 25, 2008 [D.E. 57] (the Settlement Agreement and to determine (a whether a settlement in the Class Action with the Defendants for the amount of

2 $600,000 cash, on the terms and conditions provided for in the Settlement Agreement, is fair, just, reasonable and adequate to the Class and should be approved by the Court; (b whether the Final Judgment Order as provided in the Settlement Agreement should be entered, dismissing the Class Action with prejudice; (c whether the proposed Plan of Allocation for the proceeds of the Settlement is fair and reasonable, and should be approved; (d whether to enter a Bar Order and approve the Releases by and in favor of the Class Members, as described in the Settlement Agreement; (e the amount of fees and expenses that should be awarded to the Class Plaintiffs' Counsel; and (f such other matters as the Court may deem appropriate. Due and adequate notice of the Settlement having been given as required in said Preliminary Order, and the Court having considered all papers filed and proceedings had herein and otherwise being fully informed in the premises and good cause appearing therefore, the Court orders provisionally, to be finalized hereafter in a Final Judgment and Order of Dismissal With Prejudice, as follows: 1. This Order incorporates by reference the definitions in the Settlement Agreement, and all terms used herein shall have the same meanings as set forth in the Settlement Agreement. 2. This Court has jurisdiction over the subject matter of the Litigation and over all parties to the Litigation, including all Members of the Settlement Class. 3. Pursuant to Rule 23 of the Federal Rules of Civil Procedure, this Court provisionally approves the Settlement set forth in the Settlement Agreement, and the Exhibits thereto, and provisionally approves the Plan of Allocation set forth in the Notice, and finds that said Settlement is, in all respects, fair, reasonable and adequate to, and is in the best interests of, Plaintiffs, the Class and each of the Settlement Class Members. This Court further finds the Settlement set forth in the Settlement Agreement is the result of arm s-length negotiations between

3 experienced counsel representing the interests of the Plaintiffs, the Class Members and the Defendants. Accordingly, upon entry of a Final Judgment and Order of Dismissal With Prejudice, the Settlement embodied in the Settlement Agreement shall be approved in all respects and shall be consummated in accordance with its terms and provisions. Upon entry of a Final Judgment and Order of Dismissal With Prejudice, the Settling Parties shall perform the terms of the Settlement Agreement. 4. Except as to any individual claim of those Persons (identified in Exhibit A hereto who have validly and timely requested exclusion from the Class, upon entry of a Final Judgment and Order of Dismissal With Prejudice, the Litigation as well as all of the Settled and Released Claims and Settled Defendants Claims will be dismissed with prejudice. The parties are to bear their own costs, except as otherwise provided in the Settlement Agreement. 5. Upon the Effective Date, as defined in the Settlement Agreement, and in consideration of (a Defendants agreement to pay (or cause their insurance company to pay the amount of $600,000 (the Cash Settlement Amount, and (b Defendants and their Related Parties release of Settled Defendants Claims, as set forth in the Settlement, Plaintiffs and each Class Member shall be deemed to have, and by operation of the Judgment shall have: (1 fully, finally, and forever released, relinquished and discharged all Settled and Released Claims against all Released Parties, whether or not such Settlement Class Member executes and delivers a Proof of Claim and Release, and (2 agreed to refrain from instituting, commencing, or prosecuting any litigation against any of the Released Parties with respect to any of the Settled and Released Claims, or cooperating with, either directly or indirectly, representatively, or in any other capacity, any Person engaged or proposing to engage in such an effort.

4 6. Upon the Effective Date, all Class Members who are not listed on Exhibit A hereto, and their successors and assigns, shall be forever barred and enjoined from prosecuting the Settled and Released Claims against the Defendants and their Related Parties. 7. Upon the Effective Date, and in consideration of the releases to be provided by Plaintiffs and the Settlement Class Members, each of the Defendants (and their Related Parties as defined in the Settlement Agreement shall be deemed to have, and by operation of this Judgment shall have, fully, finally and forever released, relinquished and discharged each and all of the Plaintiffs, Settlement Class Members, and Plaintiffs Lead Counsel from all Settled Defendants Claims. 8. The Notice of Class Action Settlement given to the Settlement Class was the best notice practicable under the circumstances, including individual notice to all Settlement Class Members who could be identified through reasonable effort. The Notice provided the best notice practicable under the circumstances of these proceedings and of the matters set forth therein, including the proposed Settlement set forth in the Settlement Agreement and the Settlement Hearing thereon, to all Persons entitled to such notice, and said Notice fully satisfied the requirements of Section 21D(a(7 of the Securities Exchange Act of 1934, 15 U.S.C. 78u-4(a(7 as amended by the Private Securities Litigation Reform Act of 1995, Federal Rule of Civil Procedure 23 and the requirements of due process. 9. The Court provisionally approves the Plan of Allocation as set forth in the Notice distributed to the Class. 10. Neither the Settlement, the Settlement Agreement, the Preliminary Order, the Notice, the Final Judgment and Order of Dismissal with Prejudice, or any other document executed in furtherance of the Settlement, nor any act performed pursuant to or in furtherance of the

5 Settlement Agreement: (a is or may be deemed to be, construed, or used as an admission, concession or evidence of, the validity or invalidity of any Settled and Released Claims, the truth or falsity of any fact alleged by Plaintiffs and the Class, the sufficiency or deficiency of any defense that has been or could have been asserted in the Litigation, or of any alleged wrongdoing, liability, negligence, fault of the Defendants and their Related Parties, or any of them; (b is or may be construed or deemed to be or may be used as an admission or evidence, in any civil, criminal or administrative proceeding in any court, administrative agency or other tribunal, including, without limitation, any action initiated by the Internal Revenue Service, of any fault or misrepresentation or omission with respect to any statement or written document attributed to, approved or made by any of the Defendants, or any of their Related Parties; (c is or may be construed or deemed to be or shall be used, offered or received against the Defendants, Plaintiffs or the Settlement Class, their Related Parties, or any of them, as an admission, concession or evidence of, the validity or invalidity of any of Settled Defendants Claims, the infirmity or strength of any claims raised in the Litigation, the truth or falsity of any fact alleged by Defendants, or the availability or lack of availability of meritorious defenses to the claims raised in the Litigation; (d is or may be deemed to be or shall be construed as or received in evidence as an admission or concession against the Settling Parties and their Related Parties, or each or any of them, that any of the Plaintiffs claims are with or without merit, that damages recoverable under the Plaintiffs operative complaint would have been greater or less than the Cash Settlement Amount or that the consideration to be given hereunder represents an amount equal to, less than or greater than that amount which could have or would have been recovered after trial. Any of the Settling Parties or any of their Related Parties may file the Settlement Agreement and/or the Final Judgment and Order of Dismissal With Prejudice in any action that may be brought against such party or parties in order to support a defense or counterclaim

6 based on principles of res judicata, collateral estoppel, release, good faith settlement, judgment bar or reduction or any other theory of claim preclusion or issue preclusion or similar defense or counterclaim. 11. This Court hereby retains continuing jurisdiction over (a implementation of this settlement and any award or distribution of the Gross Class Settlement Fund, including interest earned thereon; (b disposition of the Gross Class Settlement Fund; (c determination of applications for attorneys fees and expenses in the Litigation; and (d all parties hereto for the purpose of construing, enforcing and administering the Settlement Agreement. 12. The Court finds that during the course of the Litigation, the Settling Parties and their respective counsel at all times complied with the requirements of Federal Rule of Civil Procedure Plaintiffs Lead Counsel are awarded fees in the amount of 25% of the Gross Class Settlement Fund, plus reimbursement of expenses in the amount of $39,446.72, plus interest to the same extent that interest has been earned on the Gross Class Settlement Fund, both to be paid from the Gross Class Settlement Fund pursuant to the terms of the Settlement Agreement. 14. In the event that the Settlement does not become effective in accordance with the terms of the Settlement Agreement or in the event that the Gross Class Settlement Fund, or any portion thereof, is returned to the Defendants, then this Order shall be rendered null and void to the extent provided by and in accordance with the Settlement Agreement and shall be vacated and, in such event, all orders entered and releases delivered in connection herewith shall be null and void to the extent provided by and in accordance with the Settlement Agreement.

7 15. Without further order of the Court, the Settling Parties may agree to reasonable extensions of time to carry out any of the provisions of the Settlement Agreement. IT IS SO ORDERED this 3rd day of October, HON. PAUL C. HUCK UNITED STATES DISTRICT JUDGE Copies furnished to: All Counsel of Record

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9 Keith Maydak Abilene Marine & Oil Co. John Perotti Malgorzata Duszak Dominick Romano Gary (Rick Blackburn Geraldine Dorsey Joseph Dorsey Jean Hodapp Danielle Christiani Carol Kwong Robert Alan Kast M.D. Robert Alan Kast MD-IRA Adrienne Kast Leonore Kast Jourdan Kast Daniel Kast RAK Enterprises of Palm Beach Exhibit A List of Persons Excluded from the Class