As summarized by the Company’s FORM 10-Q for the quarterly period ended June 30, 1999, on March 1, 1999, the court dismissed all of the claims in the suit, most with prejudice. The plaintiffs were granted the right to replead, within ten days following the date of the order, the claims that were dismissed without prejudice. The plaintiffs did not replead any claims, but filed a notice of appeal with the United States Court of Appeals for the Eleventh Circuit (the "Court of Appeals"). On July 1, 1999, pursuant to the stipulation of the parties, the Court of Appeals issued a final order which dismissed with prejudice all claims against the Company and all other defendants.
The original complaint alleges that Omega and certain of its officers and directors violated Sections 11 and 15 of the Securities Act of 1933 because the prospectus for the company's IPO included material misrepresentations and omissions concerning the company's true financial condition in light of the company's ongoing trend of declining sales of its TradeStation software. The complaint also alleges that the prospectus did not properly disclose the true beneficiaries of a $15 million dividend paid from the proceeds of the offering.