According to a press release dated November 29, 2011, the plaintiffs allege violations of the federal securities laws in connection with the concealed details surrounding a major asset sale by the Company.
The complaint alleges that, during the Class Period, Defendants knew, or recklessly disregarded, that despite the Company's public representation that although the Company sold a large asset in September 2008, the Company had received no payments from the purchaser at the time the sale was announced. Indeed, it was not until March 18, 2009 that the buyer signed the extension payment agreement with the Company pursuant to which the buyer agreed to pay the purchase price of $8,700,000 in 3 installments (30% in July 2009, 30% in September 2009 and 40% in October 2009). In addition, Defendants, who had reported the sale of the asset, knew or recklessly disregarded that Company improperly reported results from the sale as part of its ongoing operations subsequent to September 2008, despite the fact that the Company had purportedly been sold at that time.
On April 4, 2012, the Court issued an order of consolidation and appointed lead plaintiff and lead counsel.
On July 6, 2012, plaintiffs filed their consolidated amended complaint.
On February 26, 2013, the Court issued a Memorandum and Order granted Bracken’s Motion to Withdraw as Attorney. The Clerk is directed to terminate Docket No. 62. Bracken must serve a copy of this Memorandum and Order on Svoboda forthwith. Svoboda has 30 days to obtain a new counsel. If Svoboda does not obtain new counsel and counsel does not enter a notice of appearance in that time, he shall be deemed to be proceeding pro se.
On September 30, 2013, the Court issued an Order granting the Defendants' motions to dismiss. The Clerk of Court was directed to close this case.