According to a Business Wire press release dated February 26, 2003, United States District Court Judge Charles A. Pannell, Jr. granted Serologicals' motion to dismiss the lawsuit on the basis that the plaintiffs failed to plead facts sufficient to show a violation of U.S. securities laws. Judge Pannell, Jr. had initially dismissed the complaint in September, 2001, but allowed the plaintiffs to file an amended complaint in an attempt to allege additional facts to survive a motion to dismiss. In dismissing this second complaint with prejudice, the court further ruled that it would not permit further amendment of the lawsuit.

The original complaint charged Serologicals and certain of its directors and executive officers with violations of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleged that defendants issued false and misleading financial statements that materially overstated the Company's revenues, earnings and income. As a result, Serologicals' stock price was artificially inflated throughout the Class Period.