Cryo-Cell International, Inc. ("Cryo-Cell" or the Company) is a bank that stores umbilical cord blood, including stem cells.

The 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 May 16, 1999 and May 20, 2003, thereby artificially inflating the price of Cryo-Cell securities. The Complaint alleges that the Company repeatedly recognized revenue in violation of generally accepted accounting principles ("GAAP"), including the Company's own internal accounting principles; maintained worthless assets on its balance sheets as collectible receivables; and failed to disclose related party transactions.

Specifically, the Complaint alleges that beginning on March 16, 1999, with the filing of its Form 10-K for fiscal year 1998 (for fiscal year ended November 30, 1998), each and every periodic and annual report filed with the SEC contained materially false financial statements, for at least the following reasons: (i) the Company failed to disclose a related party transaction in connection with its revenue-sharing agreement with Defendant Nyberg; (ii) the Company failed to timely write-off the value of receivables from two investors in a revenue-sharing agreement related to the Company's anticipated revenues in New Jersey; and (iii) the Company improperly recognized revenue on several transactions in connection with its granting of licenses to third parties to market the Company's services in areas outside the United States, including area licenses for Europe, the Middle East/Turkey and Mexico.

The parties entered into a Stipulation and Agreement of Settlement on September 17, 2004. The Court granted preliminary approval of the Settlement on November 19. On February 25, 2005, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

On October 14, 2005, the Court approved disbursement of the Settlement funds.