Signalife Inc (OTC: SGAL) Investor Securities Class Action Lawsuit 8/28/2008

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Company Name(s): 
Signalife
Case Name: 
Signalife Shareholder Class Action Lawsuit 8/28/2008
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
OTC: SGAL
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
08/28/2008
Class Period Begin: 
02/10/2004
Class Period End: 
04/14/2008
Court of Filing: 
U.S. District Court for the District of South Carolina
Date Settled: 
07/13/2011
Settlement Amount: 
$4,000,000
Deadline to Participate in Settlement: 
06/20/2011
Settlement Notice: 
Settlement Proof: 
Summary: 

December 13, 2011 - The court ordered the authorization of the distribution of the net settlement fund.

July 13, 2011 - 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.

April 6, 2011 - The court preliminarily approved the settlement.

March 16, 2011 - Parties filed a stipulation of settlement.

September 4, 2009 - The court granted in part and denied in part the defendants' motions to dismiss.

October 8, 2009 - The defendants filed a motion to dismiss.

February 24, 2009 - The lead plaintiff filed an amended complaint.

February 11, 2009 - The defendants filed motions to dismiss.

December 10, 2008 - The lead plaintiff filed a consolidated complaint on behalf of investors who purchased Signalife Inc (OTC: SGAL) common shares between February 10, 2004 to April 14, 2008. The lead plaintiff alleges that the defendants violated the Securities Exchange Act of 1934 by issuing false and misleading statements between February 10, 2004 to April 14, 2008.

November 20, 2008 - The lead plaintiff and lead counsel were appointed and all cases were consolidated.

October 28, 2008 - A lead plaintiff motion was filed.

August 28, 2008 - An investor in shares of Signalife Inc (OTC: SGAL) filed a lawsuit in the U.S. District Court for the District of South Carolina against Signalife Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between January 29, 2004 and April 11, 2008.

The complaint alleges that Signalife Inc (formerly known as Recom Managed Systems Inc and before that, Mt. Olympus Enterprises Inc), violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Plaintiff alleges that Signalife Inc issued false positive statements about Signalife Inc’s ability to manufacture and market its Fidelity 100 Monitor System, a supposedly wireless heart monitoring device. Despite years of highly positive statements about its heart monitor, Signalife Inc has had virtually no sales, and Signalife Inc has never had a product that was commercially viable. As a result, Signalife Inc’s stock was artificially inflated between January 29, 2004 and April 11, 2008. Signalife Inc’s stock OTC: SGAL dropped on April 11, 2008 on unprecedented volume of 3,752,100 shares, when the truth came to light that Signalife Inc’s Fidelity 100 monitor system was unsalable. Signalife Inc recently announced its imminent delisting from AMEX, and its stock price has slumped to 6 cents.

According to a press release from Signalife Inc, the defendant has launched a countersuit against plaintiff law firm and twelve large brokerage houses seeking injunctive relief against naked short-selling and market manipulation. As the release states, “The Securities and Exchange Commission has released data that the April selling of Signalife securities was not “a sell off” (as claimed by certain of the defendants) but a planned naked bear attack determined to coincide with a web cast at which the bona fides of the device were not discussed at all. In addition to the alleged unlawful taking of stock of Signalife Inc’s corporate treasury in connection with naked shorting, the illegal actions have also resulted in injuries caused to persons who have not been given access to Signalife Inc’s revolutionary technologies as a consequence of the adverse impact on the company resulting from those actions.