Rica Foods, Inc. is a Costa Rican producer of poultry products.

The original Complaint charges Defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The Complaint alleges, among other things, that throughout the Class Period Defendants filed documents with the SEC, which failed to disclose that Rica was not in compliance with the credit agreement entered into with Pacific Life Insurance Company on January 16, 2001. The Complaint alleges that Defendants knew that Rica's SEC filings were false and misleading. The Complaint further alleges that Defendants' misrepresentations caused the price of Rica common stock to be artificially inflated throughout the Class Period.

As previously disclosed in the Company’s FORM 10-Q for the quarterly period ended June 30, 2002, on April 29, 2002, four similar class actions were voluntarily dismissed without prejudice. In the Baldwin Action, the sole remaining proceeding, on May 13, 2002, Rica Foods filed a Motion to Dismiss Complaint and Supporting Memorandum of Law seeking dismissal of the Complaint on numerous grounds and requesting the Court to strike all of Baldwin's class action allegations. On July 15, 2002, the Court dismissed the individual Defendants named in the Initial Baldwin Complaint, without prejudice. On July 24, 2002, the Court granted Rica Foods' Motion to Dismiss, without prejudice. On August 7, 2002 Baldwin filed an Amended Complaint against Rica Foods and the Individual Defendants. On August 12, 2002, Rica Foods filed a Motion to Dismiss the Amended Complaint. A ruling on the Motion to Dismiss the Amended Complaint was then pending and discovery was stayed until the Court rules on Rica Foods' Motion to Dismiss the Amended Complaint.

According to the Company’s FORM 10-K For the fiscal year ended September 30, 2002, on August 12, 2002, the Company filed a Motion to Dismiss the Amended Complaint. On November 14, 2002, the Court dismissed, with prejudice, the class action lawsuit.

On October 31, 2002, an Order granting motion to dismiss Complaint was entered and the case is closed.