According to the docket, the Court has entered various settlements between Plaintiff Class members and certain Individual Defendants. The most recent settlement was on March 16, 2005. The Court entered a Stipulation of Settlement and Order by U.S. District Judge Napoleon A. Jones Jr. approving the Stipulation of Settlement as to certain individual Settling Defendants and the Settling Class Members. All claims of these Settling Class Members against the Settling Defendants are ordered dismissed with prejudice and the Settling Defendants agrees to pay immediately upon execution of this stipulation. The case is still pending.

In addition, the Court has entered an Order on February 11, 2002, granting Plaintiffs' request for dismissal of the certain Individual Defendants from the action without prejudice. Earlier, On September 7, 2000, the the Court granted plaintiffs' request for Class Certification on Claims 5-9 of the third amended and consolidated complaint. The Court also granted plaintiffs' request for Class Certification as to the Section 12(1) claim against the Defendants.

The original complaint alleges violations of Section 12(a)(1) of the Securities Act of 1933 (and violations of Section 5 of that Act), 15 USC Section 77l (a)(1) and 15 USC Section 77 (e); the complaint also alleges violations of Section 10 of the Securities Exchange Act of 1934, 15 USC Section 78j and Rule 10b-5 of the Securities and Exchange Commission.

Note: Alliance Leasing Corporation is presently in a Chapter 11 bankruptcy proceeding in the United States District Court for the Southern District of California (San Diego), Case No. 98-14142-B11 and is not named as a defendant in the complaint.