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Case Status:    SETTLED
On or around 01/19/2006 (Date of order of final judgment)

Filing Date: June 30, 2000

By the Order and Final Judgment entered on January 19, 2006 and signed by U.S. District Judge Charles R. Simpson III, the Settlement with remaining defendants Kring & Brown LLP and Shefsky & Froelich Ltd. is approved and dismissed with prejudice. Further, Plaintiffs’ Settlement Counsel are awarded, all from the Gross Settlement Fund, attorneys’ fees in the amount of $240,000.00, and reimbursement of their expenses in the amount of $4,271.48.

According to a press release dated October 10, 2005, a hearing will be held on January 5, 2006, at 1:30 p.m. in the United States District Court for the Western District of Kentucky, United States Courthouse, Louisville, KY 40202 to determine: (1) whether a proposed settlement of the class action with (i) Kring & Brown LLP and (ii) Shefsky & Froelich Ltd. for Eight Hundred Thousand Dollars ($800,000.00) in cash plus accrued interest should be approved by the Court as fair, reasonable, and adequate; (2) whether the application of Plaintiffs' Counsel for an award of attorneys' fees and reimbursement of expenses should be approved; and (3) whether the action should be dismissed with prejudice.

On July 7, 2004, the Order and Final Judgment was entered granting the motion for settlement and granting the motion for attorney fees. According to the Notice Of Pendency of Class Action and of Partial Settlement dated April 8, 2004, the case was partially settled as to defendants Advanced Equities, Inc. and certain individuals for $2,650,000.

This litigation (the "Action") is pending in the United States District Court for the Western District of Kentucky (the "Court"). The Action was brought pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), as well as Rule 10b-5 promulgated thereunder, against: former officers and directors of Pixelon, Inc.; (ii) Advanced Equities, Inc.; (iii) certain officers and/or board members of Advanced Equities, Inc.,; (iv) Kring & Brown, LLP; and (v) Shefsky & Froelich Ltd. (collectively, "Defendants"). Pixelon has filed for bankruptcy and is not a party to this Action.

This Action was commenced by the filing of a Class Action Complaint on or about June 30, 2000, as a securities class action on behalf of persons who purchased the securities or held stock of Pixelon against certain Pixelon directors and other Defendants. On December 21, 2001, the Court consolidated as part of the Action a related lawsuit styled Wenk, et al. v. Advanced Equities, Inc., et al., Civil Action No. 3:01-CV-544(H) (W.D. Ky.), which had been originally filed in the United States District Court for the Central District of California and subsequently was transferred to this Court. On July 3, 2002, the Court appointed George M. Lawson, Maria Swift, William C. Dugdale, and H. Grant Hathaway as lead plaintiffs for the Class (defined below). On the same date, the Court also certified as Lead Counsel for the Class the law firms of Berger & Montague, P.C., Sales Tillman & Wallbaum, and J. Bruce Miller Law Group (collectively, "Plaintiffs' Settlement Counsel").

Plaintiffs filed a Consolidated Amended Complaint (the "Complaint") on July 17, 2002. The Complaint alleges that investors who purchased Series A Preferred Shares of Pixelon in a private placement were defrauded by certain Pixelon Directors and other Defendants. The primary business of Pixelon, an internet company, was to develop and market an internet broadcasting network. In 2000, Pixelon filed for bankruptcy. In the Complaint, the Plaintiffs allege, inter alia, that they were defrauded in connection with their purchases of Pixelon stock because: (1) the value of the Company allegedly was overstated in the Private Placement Memorandum; (2) the Defendants allegedly knew or should have known that the background of Defendant, the President and founder of Pixelon, was false and incomplete; (3) the Private Placement Memorandum allegedly failed to make adequate disclosures regarding the ownership and development of Pixelon's technology; and (4) the President and founder of Pixelon's background and the reasons for his termination from Pixelon in November 1999 were not explained to the investors.

COMPANY INFORMATION:

Sector: Technology
Industry: Software & Programming
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol:
Company Market: Privately Traded
Market Status: Privately Held

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: W.D. Kentucky
DOCKET #: 00-CV-00382
JUDGE: Hon. Charles R. Simpson III
DATE FILED: 06/30/2000
CLASS PERIOD START: 08/09/1999
CLASS PERIOD END: 04/19/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. J. Bruce Miller Law Group
    605 W. Main Street, J. Bruce Miller Law Group, KY 40202
    502.587.0900 ·
  3. Sales, Tillman, Wallbaum, Catlett & Satterley PLLC
    1900 Waterfront Plaza; 325 W. Main Street, Sales, Tillman, Wallbaum, Catlett & Satterley PLLC, KY 40202
    502.589.5600 ·
No Document Title Filing Date
COURT: W.D. Kentucky
DOCKET #: 00-CV-00382
JUDGE: Hon. Charles R. Simpson III
DATE FILED: 07/19/2002
CLASS PERIOD START: 08/09/1999
CLASS PERIOD END: 04/19/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. J. Bruce Miller Law Group
    605 W. Main Street, J. Bruce Miller Law Group, KY 40202
    502.587.0900 ·
  3. Sales, Tillman, Wallbaum, Catlett & Satterley PLLC
    1900 Waterfront Plaza; 325 W. Main Street, Sales, Tillman, Wallbaum, Catlett & Satterley PLLC, KY 40202
    502.589.5600 ·
No Document Title Filing Date
No Document Title Filing Date