CompuServe Corporation - Securities Class Action

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CompuServe Corporation Summary: According to a Press Release dated 7/22/96, the complaint filed in the U.S. District Court for the Southern District of Ohio charges CompuServe, certain of its officers and directors, and it parent corporations (H&R Block, Inc. and H&R Block Group, Inc.) with violations of the federal securities laws (Sections 11, 12(a) (2), and 15 of the Securities Act of 1933), among other things, by failing to advise purchasers of CompuServe common stock in (or traceable to) the initial public offering in April 1996 that the Company was experiencing serious adverse trends that affected the rate of growth of its subscriber base and jeopardized its profitability.

NOTE: The case was first filed on June 28, 1996 in the Franklin County (Ohio) Court of Common Pleas, titled Greenfield v. Compuserve Corporation. The claims of the federal action are similar to the state action. Greenfield brought claims against Compuserve under sections 11, 12(a)(2) and 15 of the Securities Act of 1933.

On December 20, 1996, the Court entered the Pretrial Order by Magistrate Judge Norah M. King granting the motion for order to appoint lead plaintiffs and co-lead counsels. On February 5, 1997, the plaintiff filed an Amended Complaint. On March 17, 1997, the Defendants moved to dismiss or stay the Romine action, inter alia , on the grounds that because it was duplicative of the Ohio state action. On April 17, 1997, another similar federal class action, Mitelman v. CompuServe Corporation, was filed in the U.S. District Court for the Southern District of Ohio. The Mitelman action included the IPO Underwriters - Goldman Sachs & Co., George K. Baum and Company, and Merrill, Lynch, Pierce, Fenner & Smith Incorporated - as named Defendants.

On May 20, 1997, Mr. Greenfield initiated yet another class action lawsuit, this one filed in the Supreme Court of the State of New York solely against the Underwriters. On September 12, 1997, on Plaintiffs' motion, the district court consolidated the Romine and Mitelman federal class actions. On March 26, 1998, the district court entered an Opinion and Order staying the federal action pending resolution of the state proceedings. Finally, on April 24, 1988, the Supreme Court of New York entered an order granting the Underwriters' Motion to Dismiss those proceedings.

On April 23, 1998, the plaintiffs filed a Notice of Appeal from the March 26, 1998 District Court decision administratively terminating the federal action subject to reopen after ruling in the Ohio state action. On December 7, 1998, the Court entered the Order from the U.S. Court of Appeals Sixth Circuit affirming the decision of the District Court.

According to the website of one of the counsels in the Ohio state action, Greenfield v. CompuServe Corporation, the case settled for $9.5 million.

INDUSTRY CLASSIFICATION:
SIC Code: 7370
Sector: Technology
Industry: Computer Services

COMPANY/ISSUER NAME:	CompuServe Corporation
COMPANY/ISSUER TICKER:	CSRV
COMPANY WEBSITE:	http://www.compuserve.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Larry Romine, et al. v. CompuServe Corporation, et al.

COURT: S.D. Ohio	DOCKET NUMBER: 96-CV-717
JUDGE NAME: Magistrate Judge Norah M. King
DATE FILED: 07/22/1996	SOURCE: Internet
CLASS PERIOD START: 04/18/1996	CLASS PERIOD END: 07/16/1996
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Law Offices of Steven E. Cauley, P.A. (Little Rock) 2200 Rodney Parham Road Suite 218, Little Rock, AR, 72212 (voice) 501.312.8500, (fax) , Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY) One Pennsylvania Plaza, New York, NY, 10119-1065 (voice) 212.594.5300, (fax) , Strauss & Troy The Federal Reserve Building, 150 East Fourth Street, Cincinnati, OH, 45202-4018 (voice) 513.621.2120, (fax) 513.241.8250, wlwoods@strauss-troy.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 3

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violations of Federal Securities Laws
Type: Complaint		Date on the document: 07/22/1996

REFERENCE COMPLAINT

Larry Romine, et al. v. CompuServe Corporation, et al.

COURT: S.D. Ohio	DOCKET NUMBER: 96-CV-717
JUDGE NAME: Hon. Joseph P. Kinneary
DATE FILED: 02/05/1997	SOURCE: Business Wires
CLASS PERIOD START: 04/18/1996	CLASS PERIOD END: 07/16/1996
TYPE OF COMPLAINT: Consolidated Complaint
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY) One Pennsylvania Plaza, New York, NY, 10119-1065 (voice) 212.594.5300, (fax) , Strauss & Troy The Federal Reserve Building, 150 East Fourth Street, Cincinnati, OH, 45202-4018 (voice) 513.621.2120, (fax) 513.241.8250, wlwoods@strauss-troy.com Wolf Haldenstein Adler Freeman & Herz LLP (New York) 270 Madison Avenue, New York, NY, 10016 (voice) 212.545.4600, (fax) 212.686.0114, newyork@whafh.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 3

DOCUMENTS FOR THE REFERENCE COMPLAINT
First Amended And Consolidated Class Action Complaint
Type: Complaint		Date on the document: 02/05/1997
Opinion And Order
Type: Order		Date on the document: 03/26/1998
Docket
Type: Docket		Date on the document: 02/09/1999
Notice of Change of Firm Address
Type: Notice		Date on the document: 09/04/2001
U.S. District Court Civil Docket
Type: Docket		Date on the document: 09/17/2001

OTHER DOCUMENTS
Decision from the U.S. 6th Circuit Court of Appeals
Case Name and/or Number: Romine, et al. v. CompuServe Corporation, et al.
Type: Other		Date on the document: 11/10/1998
U.S. District Court Civil Docket
Case Name and/or Number: Mitelman, et al. v. CompuServe Corporation, et al.
Type: Docket		Date on the document: 12/22/1998
Amended Notice Of Pendency Of Class Action, Proposed Settlement Of Class Action, And Settlement Hearing
Case Name and/or Number: Greenfield, et al. v. CompuServe Corporation, et al.
Type: Notice		Date on the document: 10/13/2000

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