On May 17, 2000, the Court entered the Stipulation and Order signed by U.S. District Judge John C. Lifland dismissing the action as settled with prejudice and without costs.

The Complaint, charges that throughout the Class Period, the Company and its chief executive officer and director Andreas Typaldos violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, by engaging in a scheme to artificially inflate the market price of Elligent securities and deceive the investing public by making misrepresentations and omissions of material fact concerning the financial condition of the Company.