YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT
SUBMIT A PROOF OF CLAIM FORM POSTMARKED NO LATER THAN MAY 15, 2008
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.
EXCLUDE YOURSELF BY SUBMITTING A WRITTEN EXCLUSION POSTMARKED BY MARCH 21, 2008
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.
OBJECT BY SUBMITTING A WRITTEN OBJECTION TO THE COURT AND ALL PARTIES POSTMARKED NO LATER THAN MARCH 21, 2008
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.
GO TO THE SETTLEMENT HEARING BY FILING A WRITTEN NOTICE TO APPEAR WITH THE COURT TO BE RECEIVED BY MARCH 21, 2008
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.
DO NOTHING
Receive no payment from the Settlement Fund.
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.