U.S. District Judge Paul C. Huck signed an order on June 12, dismissing the class action lawsuit filed against SendTec Inc. and its officers and directors and certain former officers and directors of the company. Plaintiffs Richard F. Thompson and L. Alan Jacoby claimed the company failed to disclose that the individuals selling their securities were not registered brokers/dealers, which is subject to both criminal and civil penalties.
The federal claims of the case were dismissed with prejudice and may not be refiled in an amended complaint, said Daniel G. Hall, SendTec senior vice president, secretary and general counsel.
“The state law claims were dismissed without prejudice,” said Richard Bell, the plaintiffs’ attorney at law firm Cohen & Malad. “We are currently in the process of analyzing whether to appeal.”
Back in March, Mr. Hall maintained that the complaint filed by the plaintiffs had no merit and had been dismissed twice.
Regardless of the charges against it, the company operated as usual in the past few months. SendTec reported growth in both revenues and gross profit for the three-month period ending March 31, reaching $9.2 million and $4.6 million, respectively. n