The Complaint charges defendants with violations of violations of Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5 promulgated thereunder, in connection with, among other things, their dissemination of materially false and misleading press releases, public filings and other documents concerning MTST's financial results for its quarters ended March 28, 1998, June 27, 1998 and Sept. 26, 1998.
According to the Company’s Form 10-Q for the quarterly period ended March 31, 2001, on March 8, 1999 and April 7, 1999, the Company was named as a defendant in two purported class action lawsuits filed in the United States District Court for the District of Arizona. The two lawsuits contained substantially the same allegations and were brought on behalf of a class of persons who purchased our common stock between April 14, 1998 and March 2, 1999. The complaints alleged claims under Section 10(b) and SEC Rule 10b-5 of the Securities and Exchange Act of 1934. The claims further alleged that the Company made misrepresentations or omissions concerning its financial statements that artificially inflated the price of the Company’s common stock. On November 29, 1999, a motion to dismiss the lawsuit was filed. On January 10, 2000, the Court heard arguments on the motion to dismiss. During September 2000, the Court ruled in the Company’s favor and granted the Company’s motion to dismiss the lawsuit without prejudice. Plaintiffs filed an amended complaint and the Company filed, and the parties argued, another motion to dismiss. The Company’s motion was granted in March 2001, and the case was dismissed with prejudice.