According to the firm's SEC 8-K filing on August 24, 2001, Bollinger Industries, Inc. received court approval for full and final settlement with STI Classic Fund and STI Classic Sunbelt and, in a related suit, Suntrust Bank Atlanta, as trustee for Suntrust
Retirement Sunbelt Equity Fund in the Suntrust Lawsuit. Both suits were filed as class actions.

The Suntrust and STI Lawsuits, were settled through mediation and called for a one time payment of $400,000 and the issuance of 200,000 shares of Bollinger Common Stock. The complaints were not consolidated but were complaints regarding similar allegations against Bollinger.

The complaint alleges that Bollinger's financial statements and SEC filings were false and misleading. In essence, plaintiff allege that Bollinger invoiced fraudulent sales transactions with one or more customers in order to inflate reported sales, earnings, and inventory levels. These misstatements of financial performance allegedly stemmed from inadequate financial and accounting controls and violations of GAAP of which the Company and its senior management were allegedly aware. Bollinger also is alleged to have materially misstated future trends in financial performance and the composition and distribution of sales to the Company's major customers. The company also allegedly failed to disclose delays in auditing, possible liquidity and cash flow problems, and potential defaults under lines of credit. In June 1995, two of the company's outside directors resigned from the board, allegedly because of these problems. In July 1995, the company's outside auditor customers and the apparent override of internal controls in the shipping and receiving department. Based on these allegations, plaintiffs allege violations of section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.