Actrade Financial Technologies Ltd (NASDAQ: ACRT) Investor Securities Class Action Lawsuit 02/15/2002

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Company Name(s): 
Actrade
Case Name: 
Actrade Shareholder Class Action Lawsuit 02/15/2002
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: ACRT
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
02/15/2002
Class Period Begin: 
03/11/1999
Class Period End: 
08/22/2002
Court of Filing: 
U.S. District Court for the Southern District of New York
Deadline To File for Lead: 
04/16/2002
Date Settled: 
07/16/2013
Settlement Amount: 
$5,250,000
Deadline to Participate in Settlement: 
05/21/2013
Summary: 

November 19, 2013 - The court ordered the authorization of the distribution of the net settlement fund.

July 16, 2013 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissing the action with prejudice.

March 4, 2013 - The court preliminarily approved the settlement.

February 27, 2013 - The counterclaim is dismissed with prejudice.

July 22, 2011 - The court denied the defendants' motion to dismiss without prejudice.

February 18, 2011 - The defendants filed a motion to dismiss.

December 28. 2010 - Parties filed a stipulation of settlement.

December 15, 2010 - The lead plaintiffs filed a third amended complaint on behalf of investors who purchased Actrade Financial Technologies Ltd (NASDAQ: ACRT) common shares between March 11, 1999 and August 22, 2002. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between March 11, 1999 and August 22, 2002.

February 13, 2004 - The court granted the defendants' motion to dismiss with leave to file an amended complaint.

July 3, 2003 - The defendants filed a motion to dismiss.

February 20, 2003 - The lead plaintiffs filed a second amended complaint.

July 17, 2002 - The lead plaintiffs filed an amended complaint on behalf of investors who purchased Actrade Financial Technologies Ltd (NASDAQ: ACRT) common shares between March 11, 1999 and July 3, 2002. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between March 11, 1999 and July 3, 2002.

May 8, 2002 - All cases were consolidated.

February/May 2002 - Many investors in shares of Actrade Financial Technologies Ltd (formerly NASDAQ: ACRT) filed various lawsuits in the U.S. District Court for the Southern District of New York against Actrade Financial Technologies Ltd over alleged violations of Federal Securities Laws over similar time frames.

The complaints charge that Actrade Financial Technologies Ltd violated Sections 10(b) and 20(a) of the Securities Exchange
Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between March 11, 1999 and February 11, 2002. Throughout that time, Actrade Financial Technologies Ltd issued press
releases announcing record quarterly results and describing its business as providing trade financing and business-to-business financing solutions. In addition, Actrade Financial Technologies Ltd , in its fiscal year 2000 and 2001 Annual Reports filed
with the SEC on Form 10-K405, represented that its loans were covered by insurance and surety bonds, which minimized Actrade Financial Technologies Ltd 's risk on the loans. The representations in the press releases and Annual Reports were, according
to the allegations of the complaint, materially false and misleading because Actrade Financial Technologies Ltd had loaned over $10 million to individuals, not businesses, who used the proceeds personally. In addition, according to the complaint, defendants are alleged to have failed to disclose to their insurers and sureties the nature of the personal-loans and, as a result, Actrade Financial Technologies Ltd was jeopardizing its ability to collect under the policies and surety bonds in the case of default.

On February 11, 2002, Barron's published an article detailing Actrade Financial Technologies Ltd e's questionable lending practices and its alleged misrepresentations and omissions to insurers and sureties. For example, the article recounts a $6.3 million loan-default by an individual that Actrade Financial Technologies Ltd was attempting to recruit as a broker, and which an insurer and surety refused to cover on his default because they allegedly were led to believe by Actrade that the loan was for a business purpose when in fact the individual pocketed the funds. In reaction to the Barron's article, Actrade Financial Technologies Ltd's stock price plummeted by 45%, falling to $13.75 per share on February 11, 2002, from a $24.89 per share close on February 8, 2002.