U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 18781 / July 12, 2004
SECURITIES AND EXCHANGE COMMISSION V. STAND-BY SYSTEMS, INC., ET AL., CIVIL ACTION NUMBER 3:02-0642-H, (USDC/Northern District of Texas, Dallas Division).
The United States Securities and Exchange Commission (Commission) announced that on July 2, 2004, Judge Barefoot Sanders, United States District Judge for the Northern District of Texas, entered an order dismissing the Commission's civil injunctive action against defendants Stand-By Systems, Inc. (Stand-By) and Kenneth J. Palmer (Palmer).
In a joint motion to dismiss the litigation, the parties advised the Court that the Commission had determined that in light of developments since the filing of its lawsuit, it should not continue to advance its claims against the defendants. The parties also advised the Court that in making its decision to seek the dismissal of the case, the Commission relied upon the representations of the defendants concerning their willingness, prior to any future offering of securities: (1) to adopt accounting procedures and policies recommended by a CPA to be retained by Standby, not unacceptable to the Commission staff; and (2) to submit all offering materials for review by securities counsel, not unacceptable to the Commission staff.