On June 16, 2006, a status conference was held before U.S. District Judge John D. Bates. On June 29, 2006, the Court entered the Notice of Voluntary Dismissal by all parties. The action was voluntarily dismissed without prejudice.
On May 26, 2006, the Court entered the Minute Order. According to the Order signed by U.S. District Judge John D. Bates, in light of the judgment of the United States Court of Appeals in Civil Action No. 02-1490 and this Court's order and opinion of March 26, 2006, dismissing with prejudice the claims against defendants CIBC World Markets Corp. and Radin Glass & Co. in that related action, it is hereby ORDERED that the parties to this action shall appear for a status conference with the Court on June 16, 2006, at 9:00 a.m.
On January 6, 2005, the Court entered the Order granting the plaintiffs’ motion for appointment of lead plaintiffs and for approval of lead plaintiffs' selection of class counsel. Further, according to the Order, the matter was stayed pending the appeal of this Court's orders granting the motion to dismiss of defendants CIBC World Markets Corp. and Radin, Glass & Co, and denying plaintiffs' motion for reconsideration in the related Civil Action No. 02-1490.
The complaint alleges that defendants made materially false and misleading statements in connection with the sale of InterBank Funding Corporation (IBF) securities. Specifically, the offering materials and other disclosure documents related to IBF securities were misleading as to IBF's cash flow, return statistics, and loan losses; the source of interest payments made by IBF to its investors; and IBF's failure to register as an investment company. As a result of the defendants' misrepresentations, the investing public was led to believe that the IBF funds were performing much better than they actually were and the price of IBF securities was artificially inflated.
Note: A lead plaintiff has already been appointed in an action brought on behalf of purchasers of IBF securities from July 26, 1999 through June 7, 2002 and it is possible that the Court may consolidate the cases and not deem it necessary to appoint a separate lead plaintiff for the February 12, 1999 -- July 25, 1999 class period. However, if any member of the class who purchased IBF securities during the period February 12, 1999 through July 25, 1999, inclusive, desires to be appointed lead plaintiff in this class action, he or she must file a motion with the Court no later than May 3, 2004.
IBF filed for bankruptcy on June 7, 2002, and as a result, is not named as a defendant.