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Case Status:    SETTLED
On or around 12/19/2005 (Date of order of final judgment)

Filing Date: May 09, 2003

On September 3, 2005, the Court entered the Final Judgment and Order of Dismissal with Prejudice. The settlement was approved. On December 19, 2005, the Court entered the Amended Final Judgment and Order of Dismissal with Prejudice.

As disclosed by the Company’s Form 10-Q for the quarterly period ended June 30, 2005, as a result of mediation in November 2004, the parties entered into a Stipulation of Settlement in January 2005 pursuant to which the parties propose to settle the Securities Litigation for $5.5 million in cash paid by the Company’s insurance carriers. One of the Company’s insurance carriers, from whom the Company expects that approximately $1.3 million of the settlement will be paid, has reserved the right to seek reimbursement from the Company in the event it is determined that the carrier was not obligated to provide coverage for the lawsuit. The Court has preliminarily approved the settlement and formal notice of the settlement has been mailed to class members. The Court has scheduled a hearing regarding final approval of the settlement and dismissal of the lawsuit for September 19, 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 issuing a series of material misrepresentations to the
market between July 30, 2002 and May 5, 2003, thereby artificially
inflating the price of eUniverse common stock. Throughout the Class
Period, as alleged in the Complaint, defendants issued numerous
statements and filed quarterly reports with the SEC which described the
Company's increasing financial performance. The Complaint alleges that
these statements were materially false and misleading because they
failed to disclose and/or misrepresented the following adverse facts,
among others: (i) that the Company had materially overstated its net
income and earnings per share; (ii) that the Company lacked adequate
internal controls and was therefore unable to ascertain the true
financial condition of the Company; and (iii) that as a result, the
value of the Company's net income and financial results were materially
overstated at all relevant times.

On May 6, 2003, before the opening of trading, the Company shocked the
market by announcing that it "intends to restate its financial
statements for the second and third quarters of the year ended March 31,
2003" and possibly also for the first quarter of fiscal 2003. The
Company also told investors not to rely on its reported financial
results for the first three quarters of fiscal 2003. The Company
attributed the need for the restatement to the "incorrect processing of
certain transactions within the Company's accounting system." The
Company further said that the restated financial results will differ
materially from the previously-reported results. Following this
announcement, the NASDAQ halted trading in eUniverse shares and stated
that the shares will remain halted until the company has supplied
additional information.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: EUNI
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: C.D. California
DOCKET #: 03-CV-3272
JUDGE: Hon. George H. King
DATE FILED: 05/09/2003
CLASS PERIOD START: 07/30/2002
CLASS PERIOD END: 05/05/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abbey Gardy, LLP (New York)
    212 East 39th Street, Abbey Gardy, LLP (New York), NY 10016
    212.889.3700 · info@abbeygardy.com
  2. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  3. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  4. Faruqi & Faruqi LLP (New York) (former)
    320 East 39th Street, Faruqi & Faruqi LLP (New York) (former), NY 10016
    212.983.9330 212.983.9331 · Nfaruqi@faruqilaw.com
  5. Glancy Binkow & GoldBerg LLP
    1925 Century Park East, Suite 2100, Glancy Binkow & GoldBerg LLP, CA 90067
    310-201-9150 · info@glancylaw.com
  6. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
  7. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  8. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  9. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  10. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
No Document Title Filing Date
COURT: C.D. California
DOCKET #: 03-CV-3272
JUDGE: Hon. George H. King
DATE FILED: 12/17/2003
CLASS PERIOD START: 05/14/2002
CLASS PERIOD END: 05/05/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Kaplan Fox & Kilsheimer, LLP (former New York, NY)
    805 Third Avenue, 22nd Floor, Kaplan Fox & Kilsheimer, LLP (former New York, NY), NY 10022
    212.687.1980 212.687.7714 · info@kaplanfox.com
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No Document Title Filing Date