CKS Group, Inc. Conclusion: According to the docket posted, on February 10, 1999, the Court entered the Amended Order signed by U.S. District Judge Maxine M. Chesney granting the plaintiffs’ motion to be appointed lead plaintiffs and approved lead plaintiffs' choice of co-lead counsel. On April 9, 1999, the plaintiffs filed a First Amended Complaint, and the defendants responded by filing a motion to dismiss the lead plaintiffs' class action complaint. On March 22, 2000, the Court entered the Order by Judge Chesney granting the defendants motion to dismiss lead plaintiffs' class action complaint and allowed the plaintiffs 30 days to file an amended complaint. Finally, on May 8, 2000, the Court entered the Order and Judgment dismissing the case. The case is closed.
The original complaint was filed alleging that defendants illegally overstated CKSG's results and misrepresented its operations. During the class period, the three senior officers who are named as defendants reaped $8,410,434 in insider trading proceeds, selling their shares at artificially inflated proceeds, according to the complaint. Specifically, the complaint alleges that during the class period defendants issued false and misleading statements and omitted material facts. In the complaint, plaintiff alleges that defendants violated Generally Accepted Accounting Practices ("GAAP"), including GAAP as it relates to revenue recognition. According to the complaint, when defendants belatedly disclosed previously concealed and misrepresented facts on Nov. 7, 1997, the stock price plunged almost 50 percent. Investors who purchased during the class period suffered huge losses.
SIC Code: 7389
Industry: Business Services
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