National Lampoon Inc (OTC: NLMP) Investor Securities Class Action Lawsuit 12/03/2010

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Company Name(s): 
National Lampoon
Case Name: 
National Lampoon Shareholder Class Action Lawsuit 12/03/2010
Case Status: 
Settlement Approved
Affected Securities
OTC: NLMP
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
12/03/2010
Class Period Begin: 
03/01/2008
Class Period End: 
12/15/2008
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
02/07/2010
Date Settled: 
07/11/2012
Settlement Amount: 
$1,000,000
Deadline to Participate in Settlement: 
06/13/2012
Summary: 

May 16, 2013 - The court ordered the authorization of the distribution of the net settlement fund.

July 11, 2012 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

June 18, 2012 - The court held a final settlement hearing.

March 12, 2012 - The court preliminarily approved the settlement.

January 17, 2012 - Parties filed a stipulation of settlement.

August 1, 2011 - The defendant's motion to dismiss was denied.

June 23, 2011 - A defendant filed a motion to dismiss.

May 12, 2011 - The lead plaintiff and lead counsel were appointed.

February 7, 2011 - A lead plaintiff motion.

December 3, 2010 - An investor in shares of National Lampoon Inc (OTC: NLMP) filed a lawsuit in the U.S. District Court for the Central District of California against National Lampoon Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between March 1, 2008 and December 15, 2008.

The complaint alleges that National Lampoon Inc and its former CEO Daniel Laikin engaged in an unlawful scheme to inflate the price of National Lampoon Inc stock (OTC: NLMP) by paying "consultants" to purchase the stock. According to the complaint, National Lampoon Inc and its officers perpetrated the scheme in order to create the illusion of an active and liquid market in National Lampoon Inc 's shares, which would drive up the price, make the stock appear attractive and National Lampoon Inc successful, and thereby induce the purchase of National Lampoon Inc stock by the unsuspecting investors at an unknowingly inflated price. On December 15, 2008, former CEO Daniel Laikin and others were charged with conspiracy and securities fraud by federal prosecutors, in connection with the market manipulation scheme.

When the scheme was uncovered, the share price dropped, National Lampoon Inc (OTC: NLMP) stock was eventually delisted, and investors suffered huge losses. Recently, Laikin has pled guilty to securities fraud for his role in the scheme.