SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 8-K
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CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of Earliest Event Reported): September 28, 2005
PARADIGM MEDICAL INDUSTRIES, INC.
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(Exact name of registrant as specified in this Charter)
Delaware 0-28498 87-0459536
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
2355 South 1070 West, Salt Lake City, Utah 84119
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(Address of principal executive offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (801) 977-8970
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Does Not Apply
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(Former name or former address, if changed since last report)
ITEM 8.01 Other Events.
Completion of Settlement of Federal and State Class Action Lawsuits
On August 26, 2005, the federal court entered an order and final
judgment granting final approval of the settlement agreement reached on February
22, 2005 in the federal court class action lawsuit and dismissing the complaint
filed in the lawsuit with prejudice as against Paradigm Medical Industries, Inc.
(the "Company") and its former executive officers, Thomas F. Motter, Mark R.
Miehle and John W. Hemmer. In addition, the court permanently enjoined class
members in the lawsuit and their successors and assigns from instituting any
other actions against the Company and its former executive officers that had
been or could have been asserted by the class members against the Company and
its former executive officers in the federal court class action lawsuit.
Following the entry of the order and final judgment in the federal
court class action lawsuit, there has been a 30 days period to appeal the order
and final judgment. The 30 day period has now lapsed and no appeal was made of
the order and final judgment. Consequently, the order and final judgment entered
by the federal court is non-appealable.
Under the terms of settlement of the federal court class action
lawsuit, U.S. Fire Insurance Company, which issued a Directors and Officers
Liability and Company Reimbursement Policy to the Company for the period from
July 10, 2002 to July 10, 2003, agreed to pay the sum of $1,507,500 in cash to
the class members that purchased securities of the Company during the period
between April 17, 2002 and November 4, 2002.
On August 23, 2005, the state court entered a final judgment and order
of dismissal with prejudice, granting final approval of the terms of settlement
reached on February 23, 2005 in the state court class action lawsuit, dismissing
the state class action lawsuit and all claims contained therein against the
Company and its former executive officers, and enjoining the class members in
the lawsuit from prosecuting the settled claims against the Company and its
former executive officers.
Following the entry of the final judgment and order of dismissal with
prejudice in the state court class action lawsuit, there has been a 30 day
period to appeal the final judgment and order. The 30 day period has now lapsed
and no appeal was made of the final judgment and order. Consequently, the final
judgment and order entered by the state court is now non- appealable.
Under the terms of settlement of the state court class action lawsuit,
U.S. Fire agreed to pay the sum of $625,000 in cash to the class members that
purchased shares of Series E Convertible preferred stock on or about July 11,
2001.
The federal court class action lawsuit was initially filed on May 14,
2003 by Richard Meyer, individually and on behalf of all others similarly
situated, in the United States District Court for the District of Utah. The
lawsuit was consolidated into a single action on June 28, 2004 with two other
class action lawsuits -- the class action lawsuit filed by Michael Marone on
June 2, 2003 and the class action lawsuit filed by Lidia Milian on July 11, 2003
against Paradigm Medical and its former executive officers in the same court.
The consolidated action is captioned: In re: Paradigm Medical Industries
Securities Litigation, with lead plaintiffs Rock Solid Investments of Miami,
Inc., Brito & Brito Accounting, Inc. and Joseph Savanjo.
The state court class action lawsuit was initially filed on October 14,
2003 by Albert Kinzinger, Jr., individually and on behalf of all others
similarly situated, against Paradigm Medical and its former executive officers
in the Third District Court for Salt Lake County, State of Utah.
On February 22, 2005, the Company executed written settlement
agreements to settle the federal and state court class action lawsuits. As a
condition to the settlement agreements, the courts in such lawsuits must have
entered orders granting final approval of the settlements reached in those
respective actions, and such orders must have become final and non-appealable.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PARADIGM MEDICAL INDUSTRIES, INC.
(Registrant)
Date: September 28, 2005. By: /s/ John Y. Yoon
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John Y. Yoon
President and Chief Executive Officer
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