On May 6, 2005, the Court entered the Stipulation of Voluntary Dismissal signed by U.S. District Judge Richard M. Berman. The lead plaintiffs voluntarily dismiss the action without prejudice and the case was closed.
According to a press release dated August 26, 2004, a securities fraud class action lawsuit was commenced on behalf of purchasers of the securities of World Information Technology, Inc. between January 3, 2003 and March 16, 2004, inclusive. The complaint alleges that the Company, its officers, directors and outside auditor (Beckstead & Watts, LLP ) violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. World Information purported to be a leading 'online, member-created, Internet community.' Throughout the class period, the Company reported artificially inflated sales, accounts receivable and net income. Despite these violations, the Company's outside auditor certified the Company's 2002 financial statements. In September 2003, B&W wrote to World Information's CEO, questioning the validity of the Company's accounts receivable and noting problems with the Company's internal financial controls, but did not withdraw its audit report. In January 2004, B&W resigned as the Company's auditor, followed by CFO Steven D. Fellows who resigned in February 2004. On March 16, 2004, the Company announced that the Securities and Exchange Commission had temporarily suspended trading of the Company's securities due to the inaccuracy and incompleteness of the Company's financial statements.