According to the complaint, in selling the securities of or membership interests in Theta, defendants engaged in a course of conduct that was designed to and did deceive plaintiff and other members of the Class, concerning (i) the personal background and credentials of defendant Rubel; (ii) the prior performance and historical returns of Theta; (iii) the reporting of monthly rates of return and losses; and (iv) the payment of fees to Messrs. Bell and Rubel in excess of those represented in the offering memorandum. This course of conduct caused plaintiff and other members of the Class to purchase membership interests of Theta. In furtherance of this plan and course of conduct defendants took the actions as set forth herein.

On October 23, 1997, the plaintiff filed a motion for default judgment. The motion was granted against defendants Theta Group, L.L.C., and Scott S. Bell. On May 18, 1998, the plaintiff filed a motion for an order preliminarily approving settlement with defendant Scott S. Bell. On May 28, 1998, the court preliminarily approved the settlement, and gave final approval for the partial class action settlement on July 8, 1998.

On May 21, 1999, a settlement was reached plaintiff and remaining defendant Scot Rubel. On February 29, 2000 and April 25, 2000, two Stipulation and Agreements were filed. On April 27, 2000, the Court preliminary approved of settlement, and he court gave final approval to the settlement on July 7, 2000.