According to the docket posted on April 4, 2000, the defendants filed a motion to dismiss the complaint. On March 30, 2001, the Court entered the Order by U.S. District Judge Orinda D. Evans granting the motion to dismiss and dismissing as moot the plaintiff’s motion for appointment as lead plaintiffs and motion for appointment of lead counsel. The case was terminated. On April 26, 2001, the plaintiff filed a notice of appeal from the Order dismissing the case, but on December 6, 2001, the Court entered the certified copy of the Order of the U.S. Court of Appeals for the Eleventh Circuit granting the parties’ joint motion to dismiss the appeal.

The complaint charges Hagemeyer and certain of its senior executives with violations of the federal securities laws arising out of defendants' unlawful payments to senior Vallen executives to obtain their support in consummating the Tender Offer and their agreement to tender their own shares. Plaintiff alleges that by offering to pay special payments to senior Vallen executives, defendants have violated the provisions of Section 14 of the Securities Exchange Act of 1934 and the SEC regulations promulgated thereunder.

The class action commenced on behalf of persons who tendered shares of Vallen Corp. to Hagemeyer P.P.S. North America Inc. and its wholly-owned subsidiary, Shield Acquisition Corp. (collectively, "Hagemeyer"), in connection with Hagemeyer's purchase of the outstanding shares of Vallen at $25.00 per share (the "Tender Offer").