The original Complaint alleges that RelationServe and the individual Defendants violated United States securities laws, and the securities laws of the states of Florida and Indiana, causing an artificial inflation of RelationServe's stock process. The Company provides direct marketing services, including Internet customer and lead acquisition, DRTV advertising, and offline marketing. According to the Complaint, RelationServe made false and misleading statements by failing to disclose that it was selling its securities through unregistered and commissioned agents and broker/dealers in violation of state and federal law, thereby creating a substantial risk of civil liability for damages and/or the rescission of stock purchases.
NOTE: On July 27, 2006, RelationServe Media, Inc. ("RelationServe") announced that it had completed the change of its name and symbol to SendTec, Inc., (OTCBB:SNDN). For purposes of the complaint, RelationServe Media, Inc. and SendTec, Inc. (collectively the "Company") are now one and the same entity.
In October 2006, the defendants filed two motions to dismiss the Complaint. On November 7, 2006, the Court entered the Order signed by Judge Huck denying the motions to dismiss without prejudice. On November 13, 2006, the plaintiffs filed a First Amended Class Action Complaint. On February 14, 2007, the U.S. District Court for the Southern District of Florida appointed Richard F. Thompson and L. Alan Jacoby as Co-Lead Plaintiffs and also approved the Plaintiffs' selection of Cohen & Malad, LLP, as Lead Counsel, and approved Plaintiffs' selection of Friedman, Rosenwasser & Goldbaum, P.A. as Liaison Counsel. On March 6, 2007, the Court granted the defendants’ pending motions to dismiss the First Amended Class Action Complaint. On March 19, 2007, Co-Lead Plaintiffs filed the Second Amended Complaint. On April 2, 2007, the defendants filed a motion to dismiss the Second Amended Complaint.
On June 14, 2007, U.S. District Judge Paul C. Huck granted defendants' motion to dismiss the Second Amended Complaint with prejudice. The plaintiffs filed their notice of appeal on July 3, 2007, and defendants filed a notice of cross-appeal on July 16, 2007. Ruling on these notices are currently pending before the US Court of Appeals for the Eleventh Circuit.
On August 16, 2010, the Court entered the certified copy of the Mandate from the U.S. Court of Appeal. According to the Mandate, with respect to Jacoby's appeal, we affirm the district court's dismissal of Counts I and II of the Second Amended Complaint. With respect to Karp's cross-appeal, the district court's order entered June 12, 2007, is vacated and remanded for further proceedings consistent with this opinion as to 151 Notice of Appeal filed by L. Alan Jacoby, 154 Notice of Cross Appeal filed by Danielle Karp, 172 Notice of Appeal filed by Danielle Karp.
According to the Stipulation filed on October 8, 2010, Plaintiffs and Defendant Danielle Karp, by and through their respective undersigned counsel, hereby represent and stipulate that all remaining issues between them in the present action have been resolved and request this Court: (a) dismiss the action with prejudice with the parties to bear their own fees and costs; and (b) retain jurisdiction for purposes of enforcing the terms of the respective mutual settlement agreements and releases entered into by the parties related to the present action. Judge Paul C. Huck signed the Order of Dismissal on October 12, 2010.