According to the closing Order, dated 05/01/1998, from U.S. District Judge Charles A. Legge of the United States District Court For The Northern District Of California, the defendants' motion to dismiss the amended complaint was granted with prejudice because the stock purchasers did not meet the heightened pleading requirements that were imposed in cases alleging violation of federal securities laws. The original complaint charged Nellcor and certain of its officers and directors with violations of the federal securities laws and alleged that defendants participated in a fraudulent scheme and course of business that operated to manipulate Nellcor's stock price and to defraud and deceive Nellcor investors by disseminating statements and information which misrepresented the success of Nellcor's August 1995 acquisition of Puritan Bennett, the attempted integration of Nellcor's and Puritan Bennett's sales forces and the strength of Nellcor's Homecare business following Nellcor's merger with Puritan Bennett.