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Case Status:    SETTLED
On or around 07/19/2006 (Date of order of final judgment)

Filing Date: August 27, 2003

On July 17, 2006, the Court entered the Final Judgment and Order of Dismissal with prejudice. The settlement, in the amount of $32,750,000, was approved.

On October 7, 2003, Judge Jeffrey T. Miller of the Southern District of California ordered the consolidation of all related cases into In re SureBeam Corporation Securities Litigation, Case No. 03-CV-001721-JM (POR). On January 5, 2004, Judge Jeffrey T. Miller granted in part and denied in part the motion to appoint lead plaintiff and appointed Milberg Weiss Bershad Hynes & Lerach and Schatz & Noble as co-lead counsel. On January 3, 2005, the judge granted in part and denied in part defendants' motion to dismiss the case. On March 24, 2004, plaintiffs, on behalf of the class, filed a consolidated class action complaint, which defendants moved to dismiss. On January 3, 2005, the court granted in part and denied in part motions to dismiss this complaint. Pursuant to the court’s order, the plaintiff filed an amended complaint on March 1, 2005. On April 18, 2006, the Court preliminarily approved a settlement between the parties and certified a class for settlement purposes only.

The original complaint charges SureBeam and certain of its officers and
directors with violations of the Securities Exchange Act of 1934.
SureBeam provides electronic irradiation systems and services for the
food industry. The complaint alleges that during the Class Period,
defendants caused SureBeam's shares to trade at artificially inflated
levels through the issuance of false and misleading financial
statements. As a result of this inflation, SureBeam was able to
complete an initial public offering of 6.7 million shares, raising net
proceeds of $60 million on March 16, 2001.

On July 30, 2003, the Company issued a press release entitled "SureBeam
to Delay Earnings Announcement." The press release stated in part
"SureBeam Corporation announced today that it is delaying the release
of its second quarter earnings from its planned date of July 31, 2003.
As previously reported by the Company in its Current Report on Form
8-K/A filed on June 11, 2003, on June 9, 2003, Deloitte & Touche LLP
("Deloitte & Touche") was named as the Company's independent auditor
for the year ending December 31, 2003, replacing KPMG LLP. The
Company's management has not completed preparation of the financial
statements for the second quarter and Deloitte & Touche has not yet
completed its review of those statements." On Aug. 12, 2003, the Company issued another press release entitled
"SureBeam to Delay Earnings Announcement." The press release stated in
part: "SureBeam Corporation announced today that it is further delaying
the release of its second quarter earnings from its planned release
date of August 12, 2003 ... Deloitte & Touche LLP ("Deloitte & Touche")
has not completed its reviews of the Company's financial statements." On Aug. 21, 2003, the Company issued a press release entitled "SureBeam
Dismisses Auditor; Seeks to Resolve Issues." The press release stated
in part: "SureBeam Corporation announced today that it is dismissing
its independent public auditor Deloitte & Touche LLP ("Deloitte &
Touche")

The Company believes that its financial statements which
were audited by national accounting firms and filed with the Securities
and Exchange Commission, were appropriate based on the facts and
circumstances that existed at the time. However, the Board of Directors
has determined that the issues raised by Deloitte & Touche are
sufficiently important and that it wants these issues to be
definitively resolved." The stock dropped to $1.55 per share on this
news.

COMPANY INFORMATION:

Sector: Capital Goods
Industry: Misc. Capital Goods
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SURE
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: S.D. California
DOCKET #: 03-CV-01721
JUDGE: Hon. Jeffrey T. Miller
DATE FILED: 08/27/2003
CLASS PERIOD START: 03/16/2001
CLASS PERIOD END: 08/20/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abbey Gardy, LLP (New York)
  2. Bernstein Liebhard & Lifshitz, LLP (New York)
  3. Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA)
  4. Federman & Sherwood (Oklahoma City)
  5. Finkelstein & Krinsk LLP
  6. Glancy Binkow & GoldBerg LLP
  7. Law Offices of Charles J. Piven, P.A.
  8. Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA)
  9. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
  10. Murray, Frank & Sailer LLP
  11. Schatz & Nobel, P.C.
  12. Schiffrin & Barroway LLP
  13. Stull, Stull & Brody (Los Angeles)
  14. Weiss & Yourman (Los Angeles, CA)
  15. Wolf Popper, LLP
No Document Title Filing Date
COURT: S.D. California
DOCKET #: 03-CV-01721
JUDGE: Hon. Jeffrey T. Miller
DATE FILED: 03/01/2005
CLASS PERIOD START: 03/16/2001
CLASS PERIOD END: 08/27/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Blumenthal & Markham
    2255 Calle Clara, Blumenthal & Markham, CA 92037
    858.551.1223 858.551.1232 · bam@bamlawlj.com
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  3. 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
  4. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
No Document Title Filing Date
No Document Title Filing Date