June 7, 2011 - The lead plaintiff filed a notice of voluntary dismissal.
March 31, 2011 - The court granted the defendants' motions to dismiss and granted plaintiff leave to file an amended complaint.

July 9, 2010 - Defendants filed motions to dismiss.

June 16, 2010 - The lead plaintiff filed a second amended complaint.

March 31, 2010 - The court granted in part and denied in part the defendants' motions to dismiss and certain claims against the defendant were dismissed without prejudice.

September 28, 2009 - The court denied the defendant's motion to dismiss as moot.

September 16, 2009 - Defendants filed a motion to dismiss.

February 25, 2009 - The lead plaintiff filed an amended complaint.

October 21, 2008 - Defendants filed a motion to dismiss.

October 10, 2008 - The lead plaintiff and lead counsel were appointed.

September 12, 2008 - A lead plaintiff motion was filed.

June 30, 2008 - An investor in shares of Absolute Capital Management Holdings Limited (LSE: ACMH.L) filed a lawsuit in the U.S. District Court of for the District of Colorado against Absolute Capital Management Holdings Limited over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between June 30, 2005 and June 30, 2008.

According to the complaint filed on June 30, 2008, an international fraudulent securities scheme based on the illicit purchases of hundreds of millions of dollars of securities in illiquid U.S. penny stocks in the names of multiple Absolute Capital Management Holdings Limited hedge funds. When the truth about these purchases was revealed in September 2007, the value of the hedge funds promptly plunged by up to 40%, or by hundreds of millions of dollars in the aggregate.

In September 2007, the Chief Investment Officer of Return Europe Fund, East West Fund, European Catalyst Fund, Octane Fund, Activist Fund and other funds within the Absolute Capital Management Holdings Limited family of funds suddenly disappeared. Similarly, the Chairman and CEO suddenly resigned.

As reported in the press, “many Absolute Capital Management Holdings Limited investors found themselves looking at big losses after it emerged in the days after the CIO’s disappearance that a substantial amount of his holdings had been in bulletin board, or ‘pink’ sheet stocks.” Stocks known as “bulletin board” stocks or “pink sheet” stocks are stocks in companies that cannot meet the requirements to be listed on a national securities exchange. Such stocks are universally recognized in the securities industry to be illiquid, thinly-traded, and speculative. They are often stocks in start-up companies. Such stocks are far more susceptible to market manipulation than stocks traded on a national exchange.

The “big losses” initially reported in the press were an understatement. In a September 19, 2007 press release by Absolute Capital Management Holdings Limited, it was revealed that the Absolute Capital Management Holdings Limited Funds’ investments in illiquid “US-based Over the Counter Bulletin Board/Pink Sheet” stocks were “approximately $440 million to $530 million of the equity funds’ assets.”

The sudden revelation that the missing CIO had invested roughly half a billion dollars in illiquid penny stocks, contrary to the provisions contained in the Funds’ offering memoranda, caused the value of investments in the Absolute Capital Management Holdings Limited Funds to plunge and to put Absolute Capital Management Holdings Limited in a financial crisis.