According to the Order of Dismissal issued on November 30, 2001, on September 20, 2001, this Court granted the defendants' motion to dismiss for failure to state a claim without prejudice and gave plaintiffs 60 days from the date of the order to file an amended complaint. Plaintiffs have failed to so comply despite asking the Court for such relief in the event the motion were granted. Because all claims against all served defendants have been dismissed, this case shall now be closed and this complaint shall be dismissed with prejudice.
The original complaint alleges violations of federal securities laws and regulations by Tesoro as well as several of the Company's officers and directors. On May 3, 2000, Tesoro announced its financial results for the first quarter of 2000. The Company's Chief Executive Officer, Bruce Smith, admitted that Tesoro's first quarter 2000 results were significantly below analysts' consensus expectations, in part, because the indicator of Tesoro refining profit margins that the Company had begun to post on its Internet website at the beginning of the year did not reflect the volatility of oil prices in the first quarter. Smith also admitted that the Company had failed to adjust the discount factor used to account for variations when oil prices became volatile. As a result, analysts and the investing public were misled by the indicator margins posted on the Company's website and incorrectly believed that the Company's average margins were higher than they actually were.