According to the Final Judgment and Order of Dismissal With Prejudice entered on December 12, 2002, U.S. District Judge Florence-Marie Cooper released, relinquished and discharged all released claims against the released person and terminated the case. Earlier, on November 4, 2002, Judge Cooper granted the final approval the class action settlement, in the amount of $7.9 million, and granted in part and denied in part the motion for awarding the attorney fees and reimbursement of expenses.

The Complaint charges Defendants Turbodyne and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5) by, among other things: issuing false misleading statements regarding Turbodyne's financial condition as well as its present and future business prospects. Turbodyne designs, develops, manufactures and markets proprietary products that enhance performance and reduce emissions of internal combustion engines and manufacture aluminum cast automotive products, including engine components and aftermarket specialty wheels.