According to the docket posted, On September 20, 2001, the Court entered the Final Order granting the defendants’ motion to dismiss the second consolidated amended class action complaint, and the case was closed. The plaintiffs soon after filed a Notice of Appeal, but, on December 12, 2001, the Court entered the certified copy of the Order of dismissal from the U.S. Court of Appeals. The appeal was dismissed pursuant to the order granting the appellants' motion for voluntary dismissal.
Previously, on July 6, 2000, the Court entered the Order signed by U.S. District Judge William P. Dimitrouleas granting in part and denying in part the motion to alter and/or amend judgment, and the case was reopened. On August 9, 2000, the plaintiffs filed a Second Consolidated Amended Class Action Complaint, and the defendants responded by filing a motion to dismiss the second consolidated amended class action complaint.
According to the Form 10-Q filing for the quarterly period ended February 29, 2000, the Company and the named officers and directors filed a Motion to Dismiss all claims and on March 29, 2000, the court granted the Company's Motion to Dismiss the consolidated class action complaint against the Company and certain of its officers and directors. By entering its final order of dismissal, which the plaintiffs can appeal, the court ruled that the plaintiffs had failed to state a claim. On April 12, 2000, the plaintiffs filed a Motion to Alter and/or Amend the Judgment.
The original Complaint alleges that defendants, including Rexall violated Sections 10(b)(5), and Rule 10b-5 promulgated thereunder, and 20(a) of the Securities Exchange Act of 1934 (the "Act"). Defendants, the Complaint alleges, issued a series of material, false and misleading statements about Rexall, its products and the strength of its business. During the Class Period, while in possession of material, adverse, non-public information, defendants sold a combined 840,171 of their personal, Rexall stock holdings for proceeds of over $30.2 million. When Rexall announced its problems on November 5, 1998, the price of its common stock plummeted $8.875 per share to close at $13.125 down
from $22 the day before and from a Class Period high of $38.375.