According to the docket, on May 31, 2000, the Court entered the Memorandum and Order granting the Defendants’ motion to dismiss the consolidated complaint and denied the Plaintiffs' motion to strike. The Court further entered the Order of Dismissal and the action was dismissed with prejudice. The case was closed.
The Complaint asserts claims under the federal securities laws, including claims for violation of Section 10(b) and 20 (a) of the Securities Exchange Act of 1934 and Rule 10b-5 of the Securities Exchange Commission, by reason of the material misrepresentations and omissions by Evans and certain of its officers during the Class Period. As a result of these misrepresentations and omissions, the price of the company's common stock was artificially inflated throughout the Class Period. On June 8, 1999, Evans Systems disclosed that it would be required to restate its financial results for fiscal years 1997 and 1998 and the first two quarters of fiscal 1999. Following the disclosure of the true status of the Company's business, the price of Evans' common stock plummeted to $3 1/2 per share, a decline of approximately 80% from the Class Period trading high of $32 per share.