U.S DISTRICT COURT - Eastern District of New York

On August 2, 2006 true copies were served of Order for Dismissing Complaint with Leave to Amend signed by the Honorable Judge Leonard D. Wexler.

This was based on the motion made by the defendant the Complaint was legally deficient.

A hearing was conducted July 20, 2006. As shown in the transcript of the hearing the case lacked specificity. The Judge stressed to the plaintiff that it is imperative that they identify individual members who each have suffered in excess of $75,000 in damages in order for the complaint to satisfy the requisites for federal jurisdiction. It must include names, dates, times, and locations when fraud occurred. He also stated there is a two year statute of limitations.

In the hearing the Judge stated "Under the Law, the organization has to have injury, not the individual members".

The attorney for the plaintiff stated he could satisfy the requirements of the Court if given 30 days to amend the Complaint. He did not.

The fact that the Club did not withdraw the Complaint before the Judge signed the order for dismissal could open avenues for legal action on behalf of the defendant