According to the docket, on March 27, 2000, the Court entered the Minutes granting the motion for voluntary dismissal of the action. Two days later, the Court entered the Order by U.S. District Judge Saundra B. Armstrong dismissing action with prejudice. Earlier on April 14, 1999, the Court entered a Letter to Judge Armstrong dated April 12, 1999, from the Plaintiff’s counsel advising defendants of the intention to dismiss the federal action and to proceed in state court.

The complaint charges Diamond and certain of its officers and directors with violations of the California Corporations and Civil Codes by making misrepresentations about Diamond's business, products, earnings growth and financial statements and its ability to continue to achieve profitable growth. The complaint alleges that by issuing these allegedly false and misleading statements, defendants artificially inflated Diamond's stock price to a Class Period high of $43 in December 1995, allowing Diamond and Diamond insiders to sell or otherwise distribute 4 million shares of their Diamond stock for proceeds of more than $115 million, before the true facts about Diamond's troubled operations, diminished profitability and overvalued inventory were revealed and Diamond's stock collapsed to as low as $9-1/8 per share.