According to the Lead Counsel's website, after the court denied defendants’ motion to dismiss the complaint, the parties briefed the issue of whether the securities were traded in an efficient market. Prior to a decision on market efficiency, Plaintiffs settled the case for a $1.4 million payment to class members.

The original complaint charges that Empyrean and certain of its current and former officers and directors violated Sections 11 and 12(a)(2) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between July 30, 1999 through December 7, 2001. Empyrean claims to develop and sell microbicidal products and also markets a hand sanitizer in retail stores. The complaint alleges that Empyrean misrepresented in its required Securities & Exchange Commission ("SEC") filings material facts concerning clinical trials for its Geda Plus microbicidal gel. Specifically, the complaint alleges that the Company misrepresented that the National Institute of Health was funding and participating in clinical trials. Additionally, the Company misrepresented that Phase III clinical trials were proceeding in Brazil during 2001. As a result of these misstatements and non-disclosures, according to the complaint, the Company's financial reports filed with the SEC throughout the Class Period were materially false and misleading, thereby artificially inflating the price of Empyrean securities.