~=008~Greetings~=083~ to every past and present member of the Eagle ComputerUsers Group from its Board of Directors. This mailing is to notify you of theclass-action lawsuit again Eagle Computer, if you are not aware of it, so thatyou may join in it if you are eligible.
The lawsuit consists of six class actions filed in the United States DistrictCourt for the Northern District of California, on and after June 15, 1984. Theclass actions assert, on behalf of the purchasers of Eagle common stock duringthe period June 15, 1983 through March 24, 1984, inclusive, that the defendantsviolated the federal securities laws and certain provisions of California lawin issuing documents to the public in connection with the purchase and sale ofEagle stock which are alleged to have contained materially false and misleadingstatements, and to have failed to disclose material facts concerning Eagle. The plaintiffs generally assert that, during the period from June 15, 1983through March 24, 1984, the market price for Eagle common stock wasartificially inflated as a result of those materially false and misleadingstatements. The defendants are former Eagle officers and/or directors RobertJ. Loarie, Charles Kappenman, Ronald N. Mickwee, William L. Glynn, and GerardL. Kappenman, as well as a class consisting of the underwriters whoparticipated in Eagle's June 15, 1983 public offering of stock, represented byHambrecht & Quist, Inc., and Shearson/American Express, Inc. Plaintiffs alsosued Eagle, but their claims against Eagle were automatically stayed as aresult of Eagle's bankruptcy.
On March 31, 1986, the District Court approved the class action. A settlementreached between plaintiffs in the class actions, the defendants, and theinsurance company. The settlement calls for the creation of a settlement fundin the principal amount of $1,950,000. A hearing was held in San Jose onJanuary 19, 1989 about the fairness, reasonableness and adequacy of thissettlement. Every bank, brokerage firm, or other nominee for a beneficialowner who purchased Eagle common stock during the critical period was supposedto have notified its clients of the settlement. The deadline for filing ofclaims was March 31, 1989.
However, the Eagle Computer Users Group did not learn of this class actionuntil after the deadline, from a member who received a notice just before thedeadline. Hal Perry, who is a lawyer and a member of our Board of Directors,has contacted the clerk of the court, and determined that late claims will beprocessed. The settlement center prefers to deal with ECUG members who qualifyas members of the settlement class as a group.
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~=008~Who is a member of the settlement class?~=083~
You are a member of the settlement class if you purchased Eagle common stockduring the period from June 15, 1983 through March 24, 1984, inclusive, unless(a) you have filed a valid and timely request for exclusion from this class,(b) you are one of the individual defendants, or a spouse, nominee, orimmediate family member of one or more of them. (c) Eagle itself is excluded,(d) and so is the insurer.
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~=008~How to enter a claim~=083~
To enter a claim, fill out the attached ~=094~Proof of Claim and Release~=083~,and mail it ~=094~as soon as possible~=083~ to the Eagle Computer Users Group,P.O. Box 3381, Saratoga CA 95070, Attention: Harold L. Perry. Ignore the CorteMadera address given for the clerk of the court, and statements such as~=109~Q~=083~Must be Postmarked No Later Than: March 31, 1989.~=109~q~=083~ Obey all other instructions, fill out the form completely, and send it to theECUG address. Hal Perry will deliver these to the clerk of the court and get areceipt.
Send these forms, ~=094~immediately.~=083~ We will accept them from ourmembers and former members until Saturday, August 12, 1989. If you decide tofile a claim after that, send the claim directly to the Corte Madera addressgiven on page 1 of the claim form.
