By the Notice of Class Action and Hearing on Proposed Settlement dated November 20, 2000, the settlement was in the amount of $4,000,000 and accrued interest.

As reported by the Company’s FORM 10-K For The Fiscal Year Ended December 31, 2000, in July 2000, with the consent of the Company’s insurance carrier, the Company entered into a Memorandum of Understanding with plaintiffs to settle the Federal Action for an amount within the Company’s directors and officers' insurance policy limits. In November 2000, the parties filed with the Court a Stipulation of Settlement and related exhibits. On February 20, 2001, the Court approved the Stipulation of Settlement and entered an order dismissing with prejudice all claims against the defendants.

According to the same SEC filing, in 1998, various class action complaints were filed in the Superior Court of Washington (the "State Action") and in the U.S. District Court for the Western District of Washington (the "Federal Action") against the Company and certain of its officers and directors, alleging violations of Washington State and U.S. securities laws. In October 1998, the Company and the individual defendants moved to dismiss and stay the State Action. The state law claims in the State Action were subsequently re-filed in the Federal Action. In February 1999, plaintiffs filed a consolidated and amended complaint in the Federal Action, alleging violations of Washington State and U.S. securities laws. In March 1999, the Company and the individual defendants filed a motion to dismiss the consolidated amended complaint in the Federal Action. In July 1999, the Court entered an order denying in part and granting in part the motion to dismiss the complaint in the Federal Action. In November 1999, the Company filed motions for summary judgment and to stay discovery.

The original complaint charges Sonus and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that Sonus and certain of its officers and directors participated in a fraudulent scheme by misrepresenting the Company's patents; the status of its application for FDA approval of its primary product, EchoGen; the Company's competitive position with Molecular Biosystems, Inc.; and the safety and effectiveness of EchoGen. The complaint alleges that these misrepresentations caused Sonus shares to trade at an artificially inflated price during the Class Period.