On April 15, 2005, the Court entered the Order by U.S. District Judge Lourdes G. Baird granting the defendants’ motion to dismiss the third amended complaint. According to the Order, considering the 249-page length of the complaint, and the fact that plaintiffs have thrice tried and failed to plead their claim with the required particularly, the court dismisses the complaint with prejudice. On May 11, 2005, the plaintiff filed a notice of appeal which is currently pending in the Ninth Circuit Court of Appeals.
The original Complaint charges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by issuing a series of press releases and public filings disclosing significant sales growth in Syncor's international business, but omitting mention of certain allegedly improper payments to Syncor's foreign customers, thereby artificially inflating the price of Syncor's common stock.

The press releases and SEC filings that were allegally false and misleading are: April 25, 2001, press release, the March 31, 2001 Form10-Q, July 24, 2001 press release, June 30, 2001 Form 10-Q, October 24, 2001 press release, September 30, 2001 Form 10-Q, February 20, 2002 press release, 2001 10-K, April 24, 2002 press release, March 31, 2002 Form 10-Q, July 30, 2002,press release, October 11, 2002 press release.

Specifically, the Complaint alleges that the press releases and public filings were materially false and misleading because they failed to disclose that throughout the Class Period, the Company's Chairman of the Board and the director of its Asian division were making illegal payments to Syncor's overseas customers. Before the market opened on November 6, 2002, the Company shocked the market by announcing that it was conducting an internal investigation into illegal payments to its overseas customers and had contacted the Justice Department and the Securities Exchange Commission, and that its previously announced acquisition by Cardinal Health, Inc. was in doubt. As a result of this news, Syncor's stock price dropped sharply in pre-market trading to $22.50 per share, down $13.42 per share from its previous closing price of $35.92, and NASDAQ halted trading of Syncor's stock pending a satisfactory response to its request for additional information from the Company. When trading resumed the price of Syncor's stock dropped $8.52 to $27.