NEW YORK, Feb. 9, 2005 (PRIMEZONE) -- Former Broadway producers Garth Drabinsky and Myron Gottlieb -- who were responsible for hits including "Ragtime" -- were ordered by Manhattan federal judge Victor Marrero to pay $23,333,146 to investors who bought notes issued by Livent, Inc., a now-bankrupt entertainment company. Drabinsky was formerly Livent's Chairman and Chief Executive. Gottlieb was formerly Livent's President.
Judge Marrero made the ruling in granting summary judgment against Drabinsky and Gottlieb to plaintiffs in a class action lawsuit.
The plaintiffs are represented by Pomerantz Haudek Block Grossman & Gross LLP.
The plaintiff class is comprised of investors who purchased notes included in a $125 million 1997 offering by Livent. Subsequent to the offering, Livent restated much of the key financial information that was disseminated to the investing public at the time of the offering.
In entering summary judgment against Drabinsky and Gottlieb, Judge Marrero commented that "the evidence submitted by Drabinsky and Gottlieb in support of their defense" was "utterly inadequate."
Numerous other defendants in the case, including CIBC Oppenheimer Securities Corp, an underwriter of the notes offering, auditor Deloitte & Touche, and Livent outside directors including A. Alfred Taubman, have previously entered into settlements with the plaintiffs.
Murielle Steven Walsh, who handled the case for the Pomerantz Firm says that with this Judgment the class will have recouped 100% of their damages.