According to a press release dated January 27, 2005, Presstek, Inc. today announced that the plaintiffs in the purported securities class action lawsuit brought against the company, its former Chief Executive Officer, and its former Chief Financial Officer, have withdrawn their appeal of the U.S. District Court's recent dismissal of the suit. The lawsuit was allegedly brought on behalf of purchasers of Presstek's common stock during the period from December 10, 1999 through July 16, 2001, and was filed in June 2003 in the United States District Court for the District of New Hampshire. In October 2004, in a 47-page decision granting Presstek's motion to dismiss, Judge Steven McAuliffe of the U.S. District Court, found that each of the claims brought by the plaintiffs failed to allege a claim on which the Court could grant relief and the case was dismissed. Today, the plaintiffs formally withdrew their appeal of this matter.
The original complaint alleges, among other things, that the company inadequately described its arbitration proceeding with Heidelberger Druckmaschinen, A.G., which began in December 1999 and was settled in July 2001, and challenges the timing of the company's disclosure of certain warranty expenses associated with its Dimension series of computer-to-plate products.