This official Website is maintained by the Claims
Administrator retained by and under the supervision of Plaintiffs’ Co-Lead
Counsel for the Class in the action entitled In re Martek Biosciences Corp. Securities
Litigation, Civil Action No. MJG 05-1224 (the “Action”), which is pending
in the United States District Court for the Southern District of Maryland
(Northern Division). This Website will operate to provide information
and updates during the claims administration and fund
distribution for this Action.
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YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT
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SUBMIT A PROOF OF CLAIM FORM
POSTMARKED NO LATER THAN MAY 15, 2008
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The
only way to receive a payment from the Settlement Fund. Further information
is in provided in the answer to Question 10 of the Notice.
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EXCLUDE YOURSELF BY SUBMITTING A WRITTEN EXCLUSION POSTMARKED BY MARCH 21, 2008
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Receive no payment from the Settlement Fund.
This is the only option that allows you to participate in another lawsuit against
the Defendants or the Released Parties concerning the Released Claims. Further information is provided in the answer to Question 13 of the Notice.
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OBJECT BY SUBMITTING A WRITTEN OBJECTION TO THE COURT AND ALL PARTIES POSTMARKED NO LATER THAN MARCH 21, 2008
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You
may write to the Court if you do not like this Settlement, the Plan of Allocation,
the request for attorneys’ fees and expenses, or the request for reimbursement to
Lead Plaintiffs for their reasonable time and expenses. Further information is
provided in the answer to Question 18 of the Notice.
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GO TO
THE SETTLEMENT HEARING BY FILING A WRITTEN NOTICE TO APPEAR WITH THE COURT TO BE
RECEIVED BY MARCH 21, 2008
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You may ask to speak in Court
about the fairness of the Settlement. Further information is provided in the
answer to Question 21 of the Notice.
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DO NOTHING
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Receive
no payment from the Settlement Fund.
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For all of the legal rights and options noted above, additional information is
provided in the Notice of Proposed Settlement of Class Action and Motion for
Attorneys' Fees and Expenses, which you may download from this site or request by
calling (866) 963-9978.
This case was filed on behalf of a Class consisting of all persons who purchased
or otherwise acquired Martek Biosciences Corp. common stock during the
period December 9, 2004 through
April 28, 2005, inclusive (the “Class Period”).
Lead Plaintiffs allege that during the period December 9, 2004 through
and including April 28, 2005, Defendants issued statements that were
materially false and misleading and/or contained material omissions regarding the
Company’s financial prospects, including, among other things, (i) the fact that
Martek’s customers had amassed a buildup of its inventory that would cause its
customers to decrease their purchases of the Company’s product going forward,
(ii) the Company’s reported revenue and earnings for fiscal year end 2004 and
the first quarter of fiscal 2005, and (iii) the Company’s projected revenue
and earnings for the first quarter of fiscal 2005 and fiscal year end 2005.
In addition, the Complaint alleged that Defendants mislead the investing
public about the Company and its financial results in order to conduct
a public offering on January 21, 2005, whereby the Company
obtained proceeds of $81.4 million from the sale of 1,756,614 shares of
Martek common stock. The Complaint further asserted that, as a result
of Defendants’ alleged conduct, the price of Martek common stock was
artificially inflated, causing damage to those who purchased or acquired
the Company’s common stock during the Class Period.
Defendants deny the allegations made by Lead Plaintiffs and assert there has been no
wrongdoing on the part of the Defendants.
The Court did not decide in favor of Lead Plaintiffs or Defendants. Instead, both
sides agreed to a settlement. That way, they avoid the cost and risks of further
litigation and trial. As explained further in the Notice, the Lead Plaintiffs and
their attorneys believe the Settlement is best for all Class Members.
The Settlement consists of $6 million in cash. Each Class Member’s recovery will
depend on the number of shares of Martek common stock purchased or acquired during
the period December 9, 2004, through April 28, 2005, inclusive,
and the timing of those purchases, acquisitions, and any sales. Depending on the
number of eligible shares of Martek common stock that participate in the Settlement
and when those shares were purchased and/or acquired and sold, the estimated
average recovery per share of Martek common stock covered by the Settlement
will be approximately $0.63 before deduction of Court-approved fees and
expenses. If the Court approves the attorneys’ fees and expenses as requested,
the average cost per share of Martek common stock covered by the
Settlement will be $0.19.
The Court has appointed Schiffrin Barroway Topaz & Kessler, LLP and Milberg Weiss LLP
as Plaintiffs’ Co-Lead Counsel in this Action.
For additional information on the Action , questions related to the Notice or Proof
of Claim and Release form, or to receive a copy of the Notice by mail, please contact
the Claims Administrator toll-free at (866) 963-9978.
