This case has settled. The Final Settlement Order was entered on December 20, 2002.
According to a Press Release dated June 2, 2000, the Complaint charge the Company and its Chief Executive Officer with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. During the Class Period, defendants made repeated false and misleading statements regarding the successful sales of it Internet based Electronic Housecall System ("EHC"), causing the stock to reach a Class Period high of over $37.00 per share. In May, 2000, it was
revealed that the United States Food and Drug Administration was
investigating Cyber-Care for violating federal rules prohibiting the sale and restricting the marketing of non-FDA approved products. In addition, many of the "customer" defendants represented as entering into contracts for the purchase of EHC units did not have anywhere near the financial stability to enter into the multi-million dollar contracts. It was also disclosed that an analyst who issued a "Strong Buy" rating for the Company and issued a price target of $52.00 per share was in fact employed by Cyber-Care's own publicity company. In response, the Company's stock has fallen below $5.00 per share.