SeraCare Life Sciences, Inc. ("SeraCare" or the Company) engages in the manufacture and provision of biological products and services for diagnostic, therapeutic, drug discovery and research organizations worldwide.

Several purported shareholder class action lawsuits have been filed against SeraCare and certain of its officers and directors charging the Defendants with violations of the Securities Exchange Act of 1934. Specifically, the Complaint alleges that Defendants' Class Period representations regarding SeraCare's financial statements, business, and prospects were materially false and misleading when made. Specifically, the Defendants failed to disclose: (1) that the Company, in violation of its own revenue recognition accounting policies and practices, improperly recognized revenue which served to materially inflate the Company's financial results; (2) that the accounting for and valuation of the Company's inventory was faulty; (3) that the Defendants failed to prevent certain board members from exerting undue influence on the Company's financial reporting process and on the audit process; (4) that throughout the Class Period, the timeliness, quality and completeness of the Company's implementation and testing of its internal controls over financial reporting was lacking, such that the Company lacked adequate internal control; and (5) that the Company's financial statements were presented in violation of Generally Accepted Accounting Principles.

The Complaint further alleges that on or around December 14, 2005, SeraCare filed a current report on Form 8-K wherein it stated that the Company was unable, without unreasonable effort and expense, to file its annual report on Form 10-K for its fiscal year ended September 30, 2005. Then, on December 20, 2005, before the market opened, the Company announced that "the chairman of the Company's audit committee has received a letter from Mayer Hoffman McCann P.C. (MHM), the Company's independent auditors, in which MHM raised concerns with respect to the Company's financial statements, accounting documentation and the ability of MHM to rely on representations of the Company's management."

In reaction to this announcement, the price of SeraCare stock fell dramatically, from $19.30 per share on December 19, 2005 to $10.04 per share on December 20, 2005, a one-day drop of 47.98 percent on unusually heavy trading volume.

NOTE: SeraCare is no longer named a defendant because it filed for bankruptcy on March 22, 2006.

On April 10, 2006, the Court entered an Order consolidating the cases and appointing lead Plaintiffs and lead Counsel. On July 17, 2006, a Consolidated Complaint was filed.

According to an article dated April 2, 2007, the U.S. District Court for the Southern District of California on March 19 dismissed class securities fraud claims against KPMG LLP over its allegedly flawed audit of the financial statements of SeraCare, the now bankrupt biotechnology concern (In re SeraCare Life Sciences Inc. Securities Litigation, S.D. Cal., No. 05-CV-2335-H (CAB), 3/19/07). In other rulings, the court dismissed with limited exceptions the investors' 1933 Securities Act Section 11 claims against SeraCare's underwriters for a May 2005 secondary offering. … The court gave the Plaintiffs 30 days to file an amended Complaint.

On April 24, 2007, the parties entered into a Stipulation of Partial Settlement to resolve claims against SeraCare and the Individual Defendants. The settlement would not resolve claims as to Defendants CIBC World Markets Corporation, Thomas Weisel Partners LLC, William Blair & Co., LLC, and KPMG LLP. The Court granted preliminary approval of the Settlement on June 11.

Also on June 11, 2007, the Plaintiffs filed a First Amended Consolidated Complaint against the Company and certain of its officers and directors, KPMG and investment bankers. On July 16, 2007, remaining Defendant KPMG filed a motion to dismiss the First Amended Complaint, and on September 4, 2007, remaining Defendants William Blair and Co, Thomas Weisel and CIBC World Markets filed a motion to dismiss the First Amended Complaint.

On September 4, 2007, the Court approved the partial settlement with SeraCare and the individual Defendants. The case continued against the remaining Defendants.

On March 14, 2008, the court ordered a partial motion to dismiss on two of the four motions by the Plaintiff.

On September 23, 2008, the parties entered into a Stipulation of Settlement to resolve claims against KPMG LLP, CIBC World Markets Corp., Thomas Weisel Parners LLC, and Wiliam Blair & Company, LLC. On December 17, 2008, the Court granted preliminary approval of the Settlement. On July 17, 2009, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.