According to the Company’s FORM 10-QSB for the quarterly period ended March 31, 2002, on May 18, 2001, a motion to dismiss was filed on behalf of the Company and all other defendants, and March 18, 2002, the United States District Court for the District of New Jersey dismissed, with prejudice, the consolidated class action complaint. No appeal was taken and the time to appeal has expired.
Previously, according to the same SEC filing, in March and April 2000, twelve purported class actions entitled Ames v.Cybershop, Ezeir v. Cybershop, Fuechtman v. Cybershop, Kaufman v. Cybershop, Goldenberg v. Cybershop, Marino v. Cybershop, Waldarman v. Cybershop, Page v. Cybershop, Young v. Cybershop, Johnson v. Cybershop, Hitzing v. Cybershop, and Gerber v. Cybershop were filed in the United States District Court for the District of New Jersey against GSV and certain of its current and former officers and directors. On April 25, 2001, lead counsel for the plaintiffs was designated and an amended complaint was filed.
The lawsuit charges CyberShop and certain of its officers with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the action charges that CyberShop and certain of its officers improperly reported its financial condition in its public filings with the Securities and Exchange Commission and in its press releases during fiscal year 1999. These statements inflated the price of CyberShop's common stock and allowed its top officer to sell a substantial amount of his holdings at artificially-inflated prices. In February 2000, CyberShop belatedly disclosed that it would be closing its previously touted electronic-retailing business and that operations in the third quarter of 1999 had actually declined, in contrast to previous reports.