As summarized by the docket posted, on January 29, 1997, the plaintiffs filed an Amended Complaint, and the defendants responded by filing a motion to dismiss the Amended Complaint. On August 19, 1997, the Court entered the Order by U.S. District Judge Willis B. Hunt Jr. granting the defendants’ motion to dismiss the amended complaint. Further, according to the Order, the judge denied as moot the plaintiffs’ previous motion for appointment of lead plaintiffs and plaintiffs' lead counsel. Judgment was entered that day and the case terminated.
The original complaint alleges that during the class period the defendants made material misrepresentations and omissions in connection with the financial condition of the VSI Enterprises (VSI), which had the effect of artificially inflating the market price of the VSI's common stock. The complaint alleges that by virtue of this conduct defendants violated Section 10(b) of the Securities Exchange Act of 1934 (the "34 Act") and SEC Rule 10b-5 thereunder. The Complaint also alleges that defendant Richard K. Snelling was a controlling person within the meaning of Section 20 of the 1934 Act and is therefore liable to the plaintiffs on that basis as well. The Complaint seeks compensatory damages along with pre- and post-judgment interest, reasonable attorneys fees, expert witness fees and other costs.