SpongeTech Delivery Systems, Inc. ("SpongeTech" or the Company) is an American company that manufactures cleaning products for automobiles.

According to a press release dated October 09, 2009, the Complaint alleges that SpongeTech misrepresented its sales revenues, failed to disclose alleged short selling of the Company's stock by certain individuals, and improperly forged opinion letters of Counsel in order to permit the sale of the Company's stock. The Complaint further alleges that as the truth of the scheme was disclosed publicly, the price of SpongeTech stock fell dramatically – damaging investors.

As a result of this alleged misconduct, the Company is the subject of a formal SEC investigation and the SEC temporarily suspended trading in the Company's stock.

On May 12, 2010, an Order granting the motion of the Sullivan lead Plaintiff group, for consolidation, appointment as lead Plaintiffs and approval of selection of lead Counsel was filed with the Court in this action.

On July 20, 2010, Defendant Spongetech filed a Suggestion of Bankruptcy with the Court.

On September 9, 2010, the case was transferred to the Eastern District of New York. The Defendants filed Motions to Dismiss the same month. On October 13, the Court issued an Order consolidating cases.

On March 29, 2012, the Court issued an Order granting in part and denying in part Defendants' Motions to Dismiss. Plaintiffs were granted leave to file an amended Complaint. On April 30, 2012, Plaintiffs filed an amended Complaint. Defendant Spongetech was not named as a Defendant in the amended Complaint.

On January 5, 2018, the Court issued an Order referring the case to Mediation. On April 30, 2019, lead Plaintiffs and one of the individual Defendants entered into a Stipulation of Settlement.

On January 4, 2021, the Court dismissed the case without prejudice.