According to the Judgment entered on February 21, 2002, the Fourth Circuit Court of Appeals dismissed the appeal. Earlier, on October 19, 2000, the Court entered the Order by Magistrate Judge H. B. McKnight granting the defendants’ motion to dismiss the amended complaint with leave to file a second amended complaint. The plaintiff filed a second amended complaint but, on November 13, 2001, the Court entered the Order granting the defendants’ motion to dismiss the second amended and consolidated class action complaint. Judgment was further entered in favor of the defendants and against the plaintiff and the case was closed on November 13, 2001. Soon after, the plaintiff filed a Notice of Appeal on December 5, 2001.
The complaint charges Alydaar and certain officers and directors with violations of the securities laws and regulations of the United States. Specifically, the complaint alleges, among other things, that defendants falsely reported Alydaar's financial results and for the first, second, third and fourth quarters of 1998 and 1998 fiscal year ended December 31, 1998, causing Alydaar's common stock to trade at artificially inflated prices. Following defendants' disclosure that Alydaar would be required to restate its financial results, the Company's common stock closed at $3-9/16 per share on April 5, 1999 a drop of over 81% from a high of $19.375 per share.