According to Amplidyne’s Form 10-QSB For The Quarterly Period Ended March 31, 2002, the Company and the other parties to the class action reached a settlement on May 2, 2001, which was approved by the District Court for the District of New Jersey on August 14, 2001. Pursuant to the settlement agreement, a settlement fund consisting of $750,000 in cash ($50,000 of which was paid directly by the Company) and 324,486 shares of common stock (which was valued at $500,000 as of May 2, 2001) was established for the benefit of members of the class. In March 2002 the Company issued such shares.

The Complaint alleges that Amplidyne and its highest officer violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The Complaint alleges that defendants issued materially false and misleading statements by announcing that the Company had introduced new technology that would offer Internet subscribers high speed wireless Internet access at less cost than wired Internet access. Amplidyne's stock prices more than quadrupled in the days following the announcement, until it was revealed that Amplidyne's technology was not new, but had been on the market for at least a year. On this disclosure, the stock price plummeted from its Class Period high of $16-3/4 per share to $7 per share.