According to the docket posted, on September 24, 2001, the defendants and plaintiffs filed a stipulation regarding the termination of the action. On September 25, 2001, the Court entered the Order by U.S. District Judge Roslyn O. Silver granting the stipulation regarding termination of the action. The civil action and the representative plaintiffs' claims asserted were dismissed with prejudice with each party to bear its own fees, costs and expenses as set forth in the stipulation.
As summarized by a law firm’s website, on March 8, 2000, the Court consolidated all of the securities fraud actions against Action Performance arising from these facts into one consolidated class action and directed plaintiffs to file a consolidated complaint. On March 22, 2000, the Court appointed the Action Performance Plaintiffs Group as Lead Plaintiffs in the action, and appointed the law firms of Milberg Weiss Bershad Hynes & Lerach LLP, and Cohen, Milstein, Hausfeld & Toll P.L.L.C. as Co-lead Counsel for Lead Plaintiffs and the firm of Bonnett, Fairbourn, Friedman & Balint, P.C. as Liaison Counsel. On July 10, 2001, the Court granted defendants' motion to dismiss with leave to amend and directed plaintiffs to file an amended complaint within thirty (30) days.
The original complaint alleges that on 7/6/99, the Company's wholly owned subsidiary goracing.com filed a registration statement with the SEC for an initial public offering ("IPO") to raise $80 million. Because Action Performance would own 80% of the stock of goracing.com subsequent to the IPO, the top officers of Action Performance needed to make the IPO successful. To this end, it was essential that Action Performance appear to be successfully growing. Thus, defendants issued allegedly false statements about the state of Action Performance's business and the shipment of certain of its products to Home Depot.