According to the docket posted, on July 11, 2000, the plaintiff filed a notice of appeal from the June 2000 Judgment dismissing the complaint. On December 15, 2000, the Court entered the Mandate of the Second Circuit Court of Appeals. The appeal was voluntarily dismissed.
As reported by the Company’s FORM 10-K for the fiscal year ended March 31, 2000, on March 10, 2000, the Company filed a motion to dismiss the complaint and denied all of the allegations of wrongdoing asserted against it in the complaint. On April 10, 2000, the plaintiff filed a response to the Company's motion to dismiss. On May 16, 2000, the Company replied to the plaintiff's response. On June 1, 2000, the court dismissed the complaint in its entirety on grounds that the applicable statute of limitations had passed prior to the date on which the complaint was filed.
The complaint charges Coinmach and certain officers with violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 as well as Rule 10b-5. The complaint alleges that defendants issued a series of materially false and misleading statements concerning the Company's financial condition and operating results. Prior to the disclosure of the adverse facts described above, certain Coinmach insiders sold significant amounts of their personal holdings of Coinmach common stock to the unsuspecting public reaping proceeds of over $4.9 million and the Company completed a Secondary Offering raising over $50 million in proceeds.