Media Vision Securities Class Action

Media Vision Technology Corporation produced sound card and multi-media peripheral systems for personal computers. In 1993, Media Vision's sales nearly quadrupled and its stock price more than doubled. On March 24, 1994, trading on Media Vision's stock was halted and Media Vision announced that it expected to incur a "significant reduction" in revenues and a "substantial loss" in the first quarter of 1994. In bold, front page headlines, the San Francisco Chronicle disclosed on May 9, 1994 the results of its special investigation of Media Vision. The Chronicle alleged that "much of the company's success has been an illusion." Less than three months later, this "Bay Area High Tech Giant," as described by the Chronicle, had declared bankruptcy.

The first of several actions alleging fraud in connection with Media Vision securities was filed on March 24, 1994 in federal district court. On May 17, 1994, the cases were consolidated as In re Media Vision Technology Securities Litigation, Master File No. C-94-1015-FMS (N.D. Cal.). The Court's May 17, 1994 order appointed Lieff Cabraser as co-lead counsel. On February 6, 1997, the Court certified a plaintiff class of all persons who purchased Media Vision common stock or debentures between November, 1, 1992 and May 6, 1994 and two subclasses.

Plaintiffs alleged that the defendants, the top corporate officers of Media Vision, its outside auditors and the underwriters of the sales of its securities, made misleading statements that artificially inflated the price of Media Vision's stock.

In 1995, the Court approved two partial settlements. In July 1995, the Court approved a partial settlement of one million dollars with certain Media Vision officers and outside. In December 1995, the Court approved a partial settlement of $1,150,000 with Media Vision's accountants during the earliest portion of the class period, Coopers & Lybrand, LLP.

Plaintiffs entered into a settlement with NationsBanc Montgomery Securities, Inc., and Cowen & Co., Media Vision’s underwriters, Ernst & Young, LLP, Media Vision's accountants during the majority of the class period, and ex-Media Vision corporate officials Michael Humphress and Russell Faust. The total value of the settlement is $26 million. On March 17, 1997, the Court gave final approval to the settlement. With the 1995 settlements of $2.15 million, the aggregate total of the settlements reached to date is $28.15 million.