As summarized by the Company’s Form 10-Q for the quarterly period ended August 4, 2001, on July 23, 1999, the Company filed a motion to dismiss. United States District Judge Kenneth Hoyt entered an order on December 8, 1999 dismissing the Weld Suit. Mr. Weld appealed the order to the United States Court of Appeals for the Fifth Circuit (the "Fifth Circuit"). On May 16, 2001, the Fifth Circuit affirmed the District Court's dismissal of the Weld Suit

The complaint against Stage and certain of its officers, directors, underwriters and controlling shareholders seeks class action certification on behalf of persons who purchased Stage Stores Inc. common stock during a certain period of time. The suit alleges generally that the defendants made false or misleading statements or omissions relating to Stage's acquisition of C.R. Anthony Company as well as Stage's business and prospects and seeks unspecified damages.