According to the Company’s FORM 10-Q for the quarterly period ended September 30, 2000, on August 29, 2000, the plaintiffs voluntarily dismissed their complaint without prejudice.
As summarized by the same SEC filing, on March 16, 2000, the Company issued a press release announcing that its CEO and President was departing due to health reasons, and as a result, a previously announced $120 million financing had been terminated. Subsequently, seven substantially identical cases were filed in federal district court in Chicago on various dates between March 17, 2000 and May 10, 2000. In each case, Peapod and two individual defendants (both of whom are officers of Peapod) were sued for alleged violations of Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. The seven cases were consolidated on June 1, 2000. The consolidated complaint alleged that Peapod misrepresented or failed to disclose certain facts relating to the Company's liquidity, cash resources, and cash needs. The consolidated complaint was brought on behalf of a purported class of purchasers of Peapod's common stock during the period from November 8, 1999 to and including March 16, 2000, and sought to recover damages in an unspecified amount.
The original Complaint charges PPOD and certain of its officers with misrepresenting its cash funding needs, violating Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 promulgated thereunder.