According to the Company’s FORM 10-KSB For The Fiscal Year Ended December 31, 2004, on September 3, 2004, plaintiffs filed an amended complaint in the action that named only the Company and its former chairman. The amended complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and seeks unspecified damages on behalf of a purported class of plaintiffs consisting of persons who acquired the Company’s common stock from February 1, 2002 through and including March 21, 2002. The Company is named only in the count alleging violation of Section 10(b). On October 21, 2004, the Company filed a motion to dismiss the amended complaint on the ground that it fails to state a claim upon which relief can be granted. On February 4, 2005, the court ruled in the Company’s favor and dismissed the lawsuit with prejudice.
As disclosed by the Company's Form 8-K filed in the SEC dated May 26, 2004, the complaint alleges breach of fiduciary duty and violations of Section 10b of the Securities Exchange Act of 1934, and seeks an award of $4,500,000 on behalf of a purported class of plaintiffs consisting of persons who acquired Diomed's common stock during the class period. The action seeks an award of $4.5 million on behalf of a purported class of plaintiffs.
Note: The suit includes as defendents Diomed's former CEO and former chairman, according to the filing. Diomed's former chairman, Mr. Arkoosh, resigned from the board at the end of 2002.