According to the docket posted, on March 13, 2001, the plaintiffs filed a notice of appeal from the February 9, 2001 Amended Order dismissing both federal and state claims. On March 27, 2001, the defendants filed a notice of cross-appeal. On May 24, 2001, the Court entered the Mandate from the Second Circuit Court of Appeals. Both parties stipulated to voluntary dismiss their appeals.

In a press release dated February 20, 2001, Upgrade International Corp. announced that the U.S.D.C. W.D. Washington has granted the company's motions to dismiss the state law claims in the class action litigation pending before the court. In an order entered Feb. 9, 2001, the Court amended its earlier order dismissing the federal law claims adding the dismissal of the state law claims. The federal law claims were dismissed with prejudice, while the state law claims were dismissed without prejudice meaning they could be refiled by the plaintiffs in state court.

The lawsuit charges Upgrade and Daniel Bland with violations of the securities laws and regulations of the United States. The lawsuit alleges that defendants issued a series of false and misleading statements during the Class Period concerning the Company's business. The complaint alleges that defendants' false and misleading statements artificially inflated the price of the Company's stock during the Class Period.