It was a deal between Nanotech and K2 Communications. Aaron Taylor, former NTEK exec, was mentioned in the suit. Without any info from the company, NTEK shareholders were forced to piece things together. I believe the general consensus among some shareholders at the time was that the dilution was an effort to pay down the financial obligation to K2. However, because NTEK kept quiet about this, I can't be sure if any or all of the dilution was for this suit.

The suggestion that the dilution could have been for the current patrnership with Swig is interesting and certainly more optimistic. But, if that's the case, why wouldn't NTEK management say the dilution was for partnership opportunities, instead of--or in addition to--eliminating debt? That would have bolstered shareholder morale.