KO&L ACHIEVES $27.1 MILLION SETTLEMENT IN IN RE SMARTALK TELESERVICES, INC. SECURITIES LITIGATION
After more than four years of extensive litigation, the founding partners of KO&L have reached a settlement of the remaining claims asserted in this class action pending in the United States District Court for the Southern District of Ohio. The settlement concerns the claims against a number of SmarTalk's former Directors and Officers, SmarTalk Partners LLP and certain of its partners. This settlement brings the total recovery, on behalf of all persons who purchased or otherwise acquired securities (except 5¾% convertible subordinated notes) of SmarTalk Teleservices Inc. during the period August 13, 1997 through and including January 7, 1999, to $27.1 million. The Court preliminarily approved the new settlement on July 31, 2003, and held a hearing on October 16, 2003, to consider final approval of the settlement. On April 7, 2004, a judgment approving the settlement and dismissing the litigation was filed by the Court. We expect the settlement proceeds to be distributed shortly.
The details of the settlement and the rights of class members are set forth in The Notice of Settlement of Class Action, Application for Attorneys’ Fess and Expenses and Settlement Hearing.
On May 7, 2002, the Court previously approved a $15 million settlement with PricewaterhouseCoopers LLP, SmarTalk’s outside auditors, and described that settlement as “extraordinary.” A California state court presiding over a related action approved a $1 million settlement with the underwriters of a SmarTalk offering, which also issued analyst reports on SmarTalk. If you did not submit a claim form in connection with either of these settlements, you were required to submit a Proof of Claim and Release no later than October 31, 2003, in order to be eligible to share in the new settlement.
Any questions concerning the action can be submitted to us by means of the Contact Us page of this web site.
