On May 28, 1999 plaintiff filed motion for voluntary dismissal. In the court order of June 16, 1999 by Hon. Charles R. Norgle, Plaintiff's motion for voluntary dismissal is granted. All Federal Claims are dismissed with prejudice.
The original class action lawsuit was class action lawsuit alleges that officers, directors, and promoters of Exsorbet stock for violations of the Securities Act of 1933, the Securities Exchange Act of 1934, and rules promulgated thereunder and state law for a "shell-game" scheme and manipulation of the after-market for the Stock of Exsorbet Industries, Inc. More specifically, the complaint alleges that the scheme involved pushing the price of the stock from $1 to $13, even though Exsorbet was a starter company with supposed assets of $2 million and supposed total sales of only $5,049 for the year ending just one month prior to the start of public trading in its stock. This scheme was carried out through, among other things, participation bribes, controlling the floating stock supply, pegging the opening price of $5 a share, dominating and controlling the secondary market in Exsorbet stock, and issuing a forged EPA endorsement letter of Exsorbet's product and a false press release stating that Exsorbet had $5 million in contracts.
Exsorbet stock was traded on the over-the-counter market in the Pink Sheets, the Bulletin Board, and the National Association of Securities Dealers Automated Quotation Systems Small Cap Market.