According to the Company’s FORM 10-QSB For The Quarterly Period Ended March 31, 2006, the lead plaintiff once again appealed against the dismissal and the United States Court of Appeals for the Ninth Circuit affirmed the dismissal with prejudice on February 23, 2006.
As summarized by the same SEC filing, on October and November 2000, eight purported class action lawsuits were filed against the Company, its Chief Executive Officer, and its former Chief Financial Officer in the United States District Court for the Central District of California for alleged violations of the Securities Exchange Act of 1934. After the defendants moved to dismiss each of the actions, the lawsuits were consolidated under a single action, entitled "In re Aspeon Securities Litigation," Case No. SACV 00-995 AHS (ANx), and the appointed lead plaintiff voluntarily filed an amended and consolidated complaint. The defendants moved to dismiss that complaint and on April 23, 2001 the Court entered an order dismissing the complaint without prejudice. On May 21, 2001 the appointed lead plaintiff filed a third complaint, styled as a "First Amended Consolidated Complaint." On June 4, 2001 the defendants moved to dismiss this complaint and on September 17, 2001 the United States District Court dismissed the suit with prejudice and entered judgment in favor of the us and our officers. On September 20, 2001 the lead plaintiff in the class action suit appealed against the dismissal of the case. On January 21, 2003 the decision to dismiss the case was upheld but the lead plaintiff was given the opportunity to remedy the deficiencies in the complaint that had been filed. Accordingly on May 30, 2003 the plaintiff filed its "Second Amended Consolidated Complaint" which again was subsequently dismissed by the District Court. On November 26, 2003 the lead plaintiff filed its "Third Amended Consolidated Complaint" which was again dismissed with prejudice in March 2004.
The original complaint charges Aspeon and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Aspeon designs, develops, markets, and sells open system touch screen point-of-sale computers, which are sold primarily to the foodservice and retail industries. The Company also offers information-systems outsourcing, including industry-specific integrated application service provider ("ASP") products and information technology management services.