On June 21, 2005, the Court entered the Order signed by U.S. District Judge Richard P. Matsch granting the defendants’ motions to dismiss the Amended Class Action Complaint. Judgment was entered and the Amended Complaint was dismissed without prejudice. On July 25, the plaintiff filed a motion to clarify the June 21 Order, but the Judge denied the motion by the Order entered on August 1, 2005.
According to a press release dated March 7, 2005, Fischer Imaging Corporation announced that the United States District Court for the District of Colorado denied preliminary approval for the previously disclosed proposed settlement of the putative class action lawsuit brought by plaintiffs The Sorkin, LLC and James K. Harbert. A hearing on motions to dismiss all claims is scheduled for May 6, 2005.
The original complaint alleges that defendants violated Sections 10(b) and
20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder, by disseminating materially false and misleading financial
statements and press releases to the public concerning the Company's
revenues and earnings. Further, the complaint alleges that defendants
failed to timely correct the series of material falsehoods and
misrepresentations falsehoods disseminated to the market between
February 14, 2001 and April 1, 2003, thereby artificially inflating the
price of Fischer Imaging securities.
On April 1, 2003, Fischer Imaging announced in a press release that
based on a review being conducted by the Company and Ernst & Young, LLP,
it was necessary that Fischer Imaging delay the filing of its Form 10-K
for the fiscal year ending December 31, 2002. The Company announced
that based on preliminary findings, it will be necessary to restate its
financial statements for the first three quarters of 2002 and the years
ending December 31, 2000 and 2001. On April 2, 2003, and as a result of
the prior day's announcement, the share price of Fischer Imaging tumbled
to close at $4.40, down 18.36% from the previous day's close of $5.39