On June 19, 2003, the Court entered a Stipulation and Order of dismissal signed by U.S. District Judge Harold Baer Jr. According to the Order, the action is dismissed without prejudice and without costs to any party, in light of the determination by plaintiffs that there are currently similar class actions pending.
According to a Press Release dated May 23, 2003, the lawsuit charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing false and misleading analyst reports on NewPower, an energy company, without disclosing that CSFB held a 7.9% proprietary interest in NWP and, at times, that Launer and another analyst owned stock in NewPower. As a result of defendants' false and misleading statements, the market price of NewPower common stock was artificially inflated, maintained or stabilized during the Class Period. On or about April 28, 2003, the United States Securities and Exchange Commission ("SEC") issued a complaint charging CSFB with violating numerous rules of conduct of the National Association of Securities
Dealers, Inc. ("NASD") and the New York Stock Exchange, Inc. ("NYSE") by issuing false and misleading analyst reports on numerous companies, including NewPower. The SEC's complaint describes the influence and
control exerted by CSFB's investment bankers on its supposedly independent research analysts, and details how positive ratings and research reports on NewPower issued by defendants to the public were influenced by defendants' conflict of interests in owning stock of NewPower, which were often not disclosed.