Court Grants Final Approval of Agreement Resolving Apollo Litigation

4/20/2012 - Barrack Rodos & Bacine announces that on April 20, 2012, Judge James A. Teilborg of the United States District Court for the District of Arizona granted final approval of the $145 million agreement resolving the In re Apollo Group, Inc., Securities Litigation, noting that Class Counsel had obtained “an exceptional result for the class.” The court also commented that “Class Counsel have demonstrated a high degree of competence in the eight years of litigation of this case.”

Final approval of the $145 million agreement follows a long and hard-fought battle on behalf of Apollo investors. The Apollo action, commenced in 2004, is one of just a handful of securities class actions to go to trial in the last two decades. Following a trial that lasted from November 2007 to January 2008, the jury reached a unanimous verdict for the lead plaintiff and the class. Thereafter, in August 2008, the trial court granted the defendants’ motion for judgment as a matter of law and vacated the verdict. BR&B appealed the ruling to the Ninth Circuit Court of Appeals and, on June 23, 2010, the Ninth Circuit reversed and ordered that judgment in favor of the class be entered. Following the United States Supreme Court’s denial of the defendants’ petition for a writ of certiorari, the trial court entered judgment in favor of the class in accordance with the jury’s verdict. The agreement that the Court approved on April 20 resolves all outstanding issues and avoids additional litigation over calculation of damages and the administration of claims. At the court noted in its opinion, absent the agreement, there remained “substantial uncertainty” over the impact this additional litigation would have had on class’s recovery.  The court also noted that Class Counsel “achieved an exceptional result for the Class. Such a result is unique in such securities cases and could not have been achieved without Class Counsel's willingness to pursue this risky case throughout trial and beyond. … [A]s discussed above, Plaintiffs' Lead Counsel achieved exceptional results for the Class and pursued the litigation despite great risk.”

Leonard Barrack , BR&B’s senior partner, noted that “this final approval marks an excellent result for the class after more than seven years of hard-fought litigation by BR&B partners Stephen R. Basser, Jeffrey A. Barrack and Samuel M. Ward .”

BR&B urges investors who have not yet filed a proof of claim to do so as soon as possible. The proof of claim form must be filed no later than May 2, 2012. Click here for a copy of the order approving the agreement; click here for a copy of the proof of claim form.