Monterey Pasta Co. produces prepared gourmet foods.

The original Complaint alleges that Monterey Pasta and certain of its officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. Specifically, the Complaint alleges Defendants released public statements and SEC filings containing material misrepresentations and omissions concerning the Company’s operating and financial conditions, thereby artificially inflating the price of Monterey Pasta securities.

The Complaint further alleges that Defendants’ false and misleading statements propelled Monterey Pasta’s common stock to a Class Period high of $8.78. On or around December 17, 2002, Monterey Pasta’s stock collapsed by 37.8% to close at $4.26 per share on extraordinarily high trading volume of more than 2 million shares when the Company revealed it had been experiencing sales problems with its two largest customers, Costco and Sam’s, since June 2002.

On August 11, 2003, after the Plaintiffs filed a Consolidated Amended Complaint, the Defendants responded with a motion to dismiss. The motion to dismiss was granted on November 5, 2003, and on January 5, 2004, the Defendants filed a second motion to dismiss for lack of prosecution. According to the docket posted, on February 9, 2004, the Defendants filed a Stipulation of Dismissal, and on March 25, 2005, the Court entered the Order signed by U.S. District Judge Martin J. Jenkins, dismissing the case.