According to the docket posted, on August 6, 2002, the Court entered the Mandate from the Second Circuit Court of Appeals, affirming the Judgment of the District Court.
As previously reported by the Company’s FORM 10-K/A for the fiscal year ended September 30, 2001, on December 7, 2000, the Company filed a motion to dismiss all of the claims in this matter. On March 19, 2001, the United States District Court for the Southern District of New York issued Opinion and Order number 85313 regarding Case No. 00 CIV. 6769, in which this case was dismissed in its entirety. The plaintiffs are currently pursuing an appeal of the order dismissing their complaint.
The original complaint alleges that eBanker and eVision USA.COM, Inc. (defendants) misrepresented and/or omitted material facts in their private offering memoranda, communications with shareholders, and in eVision's Annual Report on Form 10-K, in violation of Sections 10(b) and 10b-5 of the Securities Exchange Act of 1934. Among other items, the plaintiffs were seeking compensatory damages of no less than $70,000,000.
Specifically, the complaint alleges that Confidential Private Offering Memoranda, supplements thereto, documents, press releases, communications with
shareholders of eBanker and eVision, the public filings of eVision and other
statements, including written communications to shareholders, disseminated to
the investing public and the Companies' shareholders during the Class Period
misrepresented and/or failed to disclose material facts about the business,
management, services, sales obligations, markets, financial condition, and
future business prospects of the Defendant Companies, including, among other
things, failing to disclose the existence of substantial impediments to the
successful completion of an initial public offering of eBanker securities,
failing to disclose that the registration of eBanker shares were dependent on
the successful completion of an eBanker initial public offering, and
affirmatively misrepresenting that certain defendants would not receive any
compensation, apart from an annual fee, but then secretly awarding them,
immediately after raising the offering monies, option compensation equal to 30%
of the equity of eBanker, thereby adding to an already IPO-impairing overhang,
potentially diluting the class members' investments.
NOTE: The original lawsuit was brought on behalf of all who purchased shares of eVision and its eBanker unit via American Fronteer Financial Corp., a wholly owned broker-dealer subsidiary of eVision, and other securities firms between April 1998 and August 2000.