According to the Company’s FORM 10-K For The Fiscal Year Ended March 31, 2001, in December 2000, the United States District Court of the Southern District of Florida dismissed the lawsuit filed against World Fuel and its executive officers and in April 2001, the same Court denied the plaintiffs' motion to alter and/or amend the case dismissal judgment.
Previously, according to the same SEC filing, in February and March 2000, two shareholders filed class action lawsuits against World Fuel and four of its executive officers in the United States District Court for the Southern District of Florida. The lawsuits were subsequently consolidated. The lawsuit alleged violations of U.S. federal securities laws and sought an unspecified amount of damages arising from the decrease in World Fuel's stock price on January 31, 2000. In June 2000, the plaintiffs amended their complaint to delete two of the claims made therein and to drop two of World Fuel's officers as defendants.
The original complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's business, financial condition, earnings and future prospects. Specifically, the complaint alleges that the Company failed to take adequate reserves for losses, failed to disclose that it lacked insurance on key assets and failed to disclose that bad debts had been consistently accounted for as advances to third-parties. As a result of these false and misleading statements, the plaintiff alleges that the Company's stock traded at artificially inflated prices during the class period. When the truth about the Company was revealed, the price of the stock dropped significantly.