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_______________
Copyright (c) 2001
Stanford Law School


Network Associates, Inc.
Summary: As recorded in the docket dated October 16, 2003, on January 8, 2003, the Court entered the Certified Copy of the Order from the Ninth Circuit Court of Appeals dismissing the plaintiff’s appeal.

According to Network Associates, Inc.’s Form 10-Q for the quarterly period ended June 30, 2001, Defendants filed a motion to dismiss on June 6, 2000. The Court granted in part and dismissed in part the motion to dismiss. The Court allowed only plaintiffs’ claims related to In-Process Research and Development to go forward and shortened the class period to April 6, 1999. Plaintiffs filed a First Amended Consolidated Complaint, and defendants filed an answer. In February 2001, the Company settled the class action. The amount of the settlement is $30 million and is being funded principally by the Company’s Directors and Officers insurance carriers. On May 21, 2001, the Court issued a Final Judgment approving the settlement agreement and dismissing with prejudice all claims asserted by the class. On June 19, 2001, a member of the class filed a Notice of Appeal in the District Court for Northern District of California, notifying the parties that he would appeal to the Ninth Circuit Court of Appeals to overturn the Court’s Final Judgment.

The complaint charges that during the Class Period the defendants, including NETA, violated the federal securities laws by misrepresenting and/or failing to disclose material information regarding Networks Associates' financial results and business prospects, giving the false impression that the Company's finances were accurately reported, that its business was healthy, its prospects good, and that it would earn in the range of $2.12 per share in 1999. These false statements caused the price of the Company's stock to be artificially inflated during the entire Class Period to levels as high as $67-11/16 per share and consistently above $30. The Individual Defendants, all of them senior executive officers of the Company, are also alleged to have taken advantage of such inflated stock prices and their insider knowledge of undisclosed adverse information, by selling almost $33 million of their Networks Associates stock during the Class Period. When Networks Associates belatedly revealed, among other things, that an SEC investigation had uncovered improper accounting practices and that its first quarter 1999 earnings would be substantially less than previously indicated by the defendants and the First Call analyst consensus, the price of Networks Associates shares plummeted, and investors who purchased NETA were damaged thereby. Subsequently, the stock fell precipitously again when full year estimates were sharply reduced by NETA.

A similar purported class action was filed in the U.S. District Court for the Western District of Washington.

INDUSTRY CLASSIFICATION:
SIC Code: 7372
Sector: Technology
Industry: Software & Programming


COMPANY/ISSUER NAME: Network Associates, Inc.
COMPANY/ISSUER TICKER: NETA
COMPANY WEBSITE: http://www.nai.com/

FIRST IDENTIFIED COMPLAINT IN THE DATABASE
Frank W. Knisley, et al. v. Networks Associates, et al.
 COURT: N.D. California  DOCKET NUMBER: 99-CV-01729
 JUDGE NAME:  Hon. Susan Illston
 DATE FILED: 04/07/1999  SOURCE: Internet
 CLASS PERIOD START: 01/20/1998  CLASS PERIOD END: 04/06/1999
 TYPE OF COMPLAINT: Unamended/Unconsolidated
 PLAINTIFF FIRMS IN THIS OR SIMILAR CASE:
  • Alfred G. Yates, Jr.
      429 Forbes Avenue, Pittsburgh , PA, 15219
       (voice) 412.391.5164, (fax) ,
  • Milberg, Weiss, Bershad, Hynes & Lerach LLP (San Diego, CA)
      600 West Broadway, 1800 One America Plaza, San Diego, CA, 92101
       (voice) 800.449.4900, (fax) , support@milberg.com
  • Milberg, Weiss, Bershad, Hynes & Lerach, LLP (S.F., CA)
      100 Pine Street - Suite 2600, San Francisco, CA, 94111
       (voice) 415.288.4545, (fax) 415.288.4534,
  • Scott & Scott LLC
      P.O. Box 192, 108 Norwich Avenue, Colchester, CT, 06415
       (voice) 860.537.5537, (fax) 860.537.4432, scottlaw@scott-scott.com
  • Stevn E. Cauley, P.A.
      2200 Rodney Parham Road Suite 218, Little Rock, AR, 72212
       (voice) 501.312.8500, (fax) ,
    _____________________________________________
     TOTAL NUMBER OF PLAINTIFF FIRMS:  5

  •  DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
    Complaint for Violation of the Securities Exchange Act of 1934
    Type: Complaint Date on the document: 04/07/1999
    Declaration Of Behram V. Parekh In Support Of The Network Institutional Group's Motion For Consolidation Of All Related Actions And Appointment Of Lead Plaintiff And Lead Counsel Pursuant To Section 21d(A)(3)(B) Of The Securities Exchange Act Of 1934
    Type: Declaration Date on the document: 06/04/1999
    Network Institutional Group's Memorandum Of Points And Authorities In Support Of Their Motion For Consolidation Of All Related Actions And Appointment Of Lead Plaintiff And Lead Counsel Pursuant To Section 21d(A)(3)(B) Of The Securities Exchange Act Of 1934
    Type: Motion Date on the document: 06/04/1999
    Network Institutional Group's Notice Of Motion And Motion For Consolidation Of All Related Actions And Appointment Of Lead Plaintiff And Lead Counsel Pursuant To Section 21d(A)(3)(B) Of The Securities Exchange Act Of 1934
    Type: Motion Date on the document: 06/04/1999
    Notice Of Motion, Motion And Memorandum Of Points And Authorities To Appoint The Network Associates' Lead Plaintiff Group As Lead Plaintiff Pursuant To §21d(A)(3)(B) Of The Securities Exchange Act Of 1934 And To Approve Lead Plaintiff's Choice Of Counsel
    Type: Notice Date on the document: 06/05/1999
    Notice Of Motion, Motion And Memorandum Of Points And Authorities To Consolidate Related Actions Against Network Associates, Inc. For Violations Of The Securities Exchange Act Of 1934
    Type: Notice Date on the document: 06/05/1999
    Declaration Of John K. Grant In Support Of Motion To Appoint The Network Associates Plaintiff Group As Lead Plaintiff Pursuant To §21d(A)(3)(B) Of The Securities Exchange Act Of 1934 And To Approve Lead Plaintiff's Choice Of Counsel
    Type: Declaration Date on the document: 06/07/1999
    Notice Of Rescheduling Of Hearing On The Network Institutional Group's Motion For Consolidation Of All Related Actions And Appointment Of Lead Plaintiff And Lead Counsel Pursuant To Section 21d(A)(3)(B) Of The Securities Exchange Act Of 1934
    Type: Notice Date on the document: 06/07/1999
    Declaration of Melvyn I. Weiss
    Type: Declaration Date on the document: 06/14/1999
    Declaration of Dennis A. Gilardi
    Type: Declaration Date on the document: 06/15/1999
    Declaration of Alan Schulman
    Type: Declaration Date on the document: 06/16/1999
    Declaration of Linda Anderson of Glickenhaus & Co.
    Type: Declaration Date on the document: 06/16/1999
    Declaration of John K. Grant
    Type: Declaration Date on the document: 06/17/1999
    Network Associates Plaintiff Group's Miscellaneous Ex Parte Request Pursuant To Local Rule 7-11(C) Regarding Motions For Appointment Of Lead Plaintiff And Lead Counsel
    Type: Motion Date on the document: 06/17/1999
    Letter re Milberg Ex Parte motion to Judge Armstrong from Weiss & Yourman, representing Network Institutional Group
    Type: Other Date on the document: 06/18/1999
    Letter re Miscellaneous Ex Parte Request to Judge Armstrong from Milberg Weiss Bershad Hynes & Lerach LLP
    Type: Other Date on the document: 06/18/1999
    Letter re Miscellaneous Ex Parte Request to Judge Armstrong from Weiss & Yourman
    Type: Other Date on the document: 06/22/1999
    Network Associates Plaintiff Group's Reply in Support of Their Miscellaneous Ex Parte Request Regarding Appointment of Lead Plaintiff and Counsel
    Type: Other Date on the document: 06/25/1999
    Re-Notice Of Hearing On The Network Institutional Group's Motion For Consolidation Of All Related Actions And Appointment Of Lead Plaintiff And Lead Counsel Pursuant To Section 21d(A)(3)(B) Of The Securities Exchange Act Of 1934
    Type: Notice Date on the document: 06/29/1999
    Order [denying NALPG ex parte motion]
    Type: Order Date on the document: 08/16/1999
    Notice of Declaration of Michael Koonce on Behalf of the Evergreen Funds Repudiating and/or Requesting Withdrawal of Motion To Be Appointed Lead Plaintiff
    Type: Notice Date on the document: 10/04/1999
    Order Requesting Views of the Securities & Exchange Commission
    Type: Order Date on the document: 10/07/1999
    Order To Submit Information From Lead Plaintiff Candidates
    Type: Order Date on the document: 10/13/1999
    Declaration Of Elizabeth Lin In Support Of Network Institutional Group's Opposition To Nalpg's Motion For Appointment Of Lead Plaintiff And Lead Counsel Pursuant To Section 21d(A)(3)(B) Of The Securities Exchange Act Of 1934
    Type: Declaration Date on the document: 10/14/1999
    Declaration Of John K. Grant In Support Of NALPG's Opposition To Weiss & Yourman Motion And Vattuone Motion For Appointment Of Lead Plaintiff And Lead Counsel Pursuant To §21d(A)(3)(B) Of The Securities Exchange Act Of 1934
    Type: Declaration Date on the document: 10/14/1999
    Declaration Of Reed R. Kathrein In Support Of Nalpg's Opposition To Motion By Others For Appointment Of Lead Plaintiff And Lead Counsel Pursuant To §21d(A)(3)(B) Of The Securities Exchange Act Of 1934
    Type: Declaration Date on the document: 10/14/1999
    NALPG's Opposition to Weiss & Yourman Motion and Vattuone Motion for Appointment of Lead Plaintiff and Lead Counsel Pursuant To Section 21d(A)(3)(B) Of The Securities Exchange Act Of 1934
    Type: Motion Date on the document: 10/14/1999
    Network Institutional Group's Opposition to NALPG's Motion for Appointment of Lead Plaintiff and Lead Counsel Pursuant to Section 21D(a)(3)(B) Of The Securities Exchange Act Of 1934
    Type: Motion Date on the document: 10/14/1999
    The Network Institutional Group's Opposition to Robert A. Vatuone's Motion for Appointment of Lead Plaintiff and Lead Counsel Pursuant To Section 21d(A)(3)(B) Of The Securities Exchange Act Of 1934
    Type: Motion Date on the document: 10/14/1999
    The Network Institutional Group's Opposition to Robert A. Vatuone's Motion for Intra-District Transfer
    Type: Motion Date on the document: 10/14/1999
    City Of Philadelphia's Reply In Support Of NALPG's Motion For Appointment Of Lead Plaintiff And Lead Counsel Pursuant To Section 21d(A)(3)(B) Of The Securities Exchange Act Of 1934
    Type: Motion Date on the document: 10/25/1999
    Declaration of Elizabeth P. Lin in Support of Network Institutional Group's Reply to NALPG's Opposition to NIG's Motion for Appointment of Lead Plaintiff And Lead Counsel Pursuant To Section 21d(A)(3)(B) Of The Securities Exchange Act Of 1934
    Type: Declaration Date on the document: 10/25/1999
    Network Institutional Group's Reply to NALPG's Opposition to NIG's Motion for Appointment of Lead Plaintiff and Lead Counsel Pursuant to Section 21D(a)(3)(B) Of The Securities Exchange Act Of 1934
    Type: Motion Date on the document: 10/25/1999
    Ex Parte Request To File Surreply and Surreply to Network Institutional Group's Reply to NALPG's Opposition to NIG's Motion for Appointment of Lead Plaintiff And Lead Counsel Pursuant To Section 21D(a)(3)(B) Of The Securities Exchange Act Of 1934
    Type: Motion Date on the document: 11/02/1999
    Supplemental Declaration of Ellen R. Peck
    Type: Declaration Date on the document: 11/02/1999
    Notice of Request To Withdraw From NIG's Motion To Be Appointed Lead Plaintiff by 19 American National Affiliated Entities
    Type: Notice Date on the document: 11/03/1999
    Declaration of David C. Walton in Support of the Network Associates Lead Plaintiff Group's Motion for Appointment as Lead Plaintiff
    Type: Declaration Date on the document: 11/04/1999
    Memorandum of the Securities and Exchange Commission, Amicus Curiae
    Type: Other Date on the document: 11/10/1999
    Memorandum Opinion Appointing Lead Plaintiff
    Type: Other Date on the document: 11/12/1999
    Memorandum Opinion Appointing Lead Plaintiff (Amended)
    Type: Other Date on the document: 11/22/1999
    Order Supporting Robert A. Vatuone as Lead Plaintiff
    Type: Order Date on the document: 12/15/1999
    Robert A. Vatuone's Verified Statement Re Acceptance of Lead Plaintiff Assignment
    Type: Other Date on the document: 12/20/1999
    Lead Plaintiff's Request for Proposals for Class Counsel
    Type: Other Date on the document: 12/22/1999
    Order Denying Request To Direct Lead Plaintiff To Accept Bid
    Type: Order Date on the document: 01/13/2000
    Order Denying Motions
    Type: Order Date on the document: 01/18/2000
    Order Appointing Class Counsel
    Type: Order Date on the document: 01/24/2000
    CIVIL DOCKET FOR CASE #: 99-CV-1729
    Type: Docket Date on the document: 01/26/2000
    Litigants
    Type: Other Date on the document: 01/26/2000

    REFERENCE COMPLAINT
    Frank W. Knisley, et al. v. Networks Associates, et al.
     COURT: N.D. California  DOCKET NUMBER: 99-CV-01729
     JUDGE NAME: Hon. William H. Alsup
     DATE FILED: 4/20/2000  SOURCE: Business Wires
     CLASS PERIOD START: 01/20/1998  CLASS PERIOD END: 04/06/1999
     TYPE OF COMPLAINT: Consolidated and/or Amended
     PLAINTIFF FIRMS NAMED IN COMPLAINT:
  • Alfred G. Yates, Jr.
      429 Forbes Avenue, Pittsburgh , PA, 15219
       (voice) 412.391.5164, (fax) ,
  • Milberg, Weiss, Bershad, Hynes & Lerach LLP (San Diego, CA)
      600 West Broadway, 1800 One America Plaza, San Diego, CA, 92101
       (voice) 800.449.4900, (fax) , support@milberg.com
  • Milberg, Weiss, Bershad, Hynes & Lerach, LLP (S.F., CA)
      100 Pine Street - Suite 2600, San Francisco, CA, 94111
       (voice) 415.288.4545, (fax) 415.288.4534,
  • Scott & Scott LLC
      P.O. Box 192, 108 Norwich Avenue, Colchester, CT, 06415
       (voice) 860.537.5537, (fax) 860.537.4432, scottlaw@scott-scott.com
  • Stevn E. Cauley, P.A.
      2200 Rodney Parham Road Suite 218, Little Rock, AR, 72212
       (voice) 501.312.8500, (fax) ,
    _____________________________________________
     TOTAL NUMBER OF PLAINTIFF FIRMS:  5

  •  DOCUMENTS FOR THE REFERENCE COMPLAINT
    Notice Of Proposed Settlement Of Class Action
    Type: Notice Date on the document: 03/14/2001
    Proof Of Claim
    Type: Other Date on the document: 03/14/2001
    Summary Notice
    Type: Notice Date on the document: 03/14/2001
    U.S. District Court Civil Docket
    Type: Docket Date on the document: 10/16/2003

     OTHER DOCUMENTS
    Complaint for the Violation of Federal Securities Laws
    Case Name and/or Number: Wetzel v. Network Associates, et al
    Type: Complaint Date on the document: 04/07/1999
    Complaint for Violation of the Securities Exchange Act of 1934
    Case Name and/or Number: Estate of Lillian Herschkowitz v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 04/07/1999
    Complaint for Violation of the Securities Exchange Act of 1934
    Case Name and/or Number: Hallowell, et al. v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 04/08/1999
    Complaint for Violation of the Securities Exchange Act of 1934
    Case Name and/or Number: Klein v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 04/08/1999
    Complaint for the Violation of Federal Securities Laws
    Case Name and/or Number: Krim v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 04/09/1999
    Complaint for Violation of the Securities Exchange Act of 1934
    Case Name and/or Number: Bunson v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 04/09/1999
    Complaint for Violation of Federal Securities Laws
    Case Name and/or Number: Fine v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 04/12/1999
    Complaint for Violation of the Securities Exchange Act of 1934
    Case Name and/or Number: Maczo, et al. v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 04/12/1999
    Complaint for Violation of the Securities Exchange Act of 1934
    Case Name and/or Number: Pappas, et al. v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 04/13/1999
    Certification by Lawyer Seeking to Serve as Class Counsel [Local Rule 3-7(d)]
    Case Name and/or Number: Fine v. Network Associates, Inc., et al
    Type: Other Date on the document: 04/14/1999
    Complaint for the Violation of Federal Securities Laws
    Case Name and/or Number: Fulton v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 04/14/1999
    Notice of Publication
    Case Name and/or Number: Fine v. Network Associates, Inc., et al
    Type: Notice Date on the document: 04/14/1999
    Complaint for the Violation of Federal Securities Laws
    Case Name and/or Number: Shih v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 04/15/1999
    Complaint for Violation of the Securities Exchange Act of 1934
    Case Name and/or Number: Holtan v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 04/15/1999
    Notice of Pendency of Other Actions or Proceedings Pursuant to Local Rule 3-13
    Case Name and/or Number: Fine v. Network Associates, Inc., et al
    Type: Notice Date on the document: 04/15/1999
    Complaint for Violation of the Securities Exchange Act of 1934
    Case Name and/or Number: Chan v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 04/20/1999
    Complaint for Violation of the Securities Exchange Act of 1934
    Case Name and/or Number: Beltran v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 04/21/1999
    Corrected Complaint for Violation of the Federal Securities Laws
    Case Name and/or Number: Herrera v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 04/26/1999
    Complaint for Violation of the Securities Exchange Act of 1934
    Case Name and/or Number: Goldsmith v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 04/27/1999
    Complaint for Violation of the Securities Exchange Act of 1934
    Case Name and/or Number: Conchado, et al. v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 05/05/1999
    Complaint for Violation of the Securities Exchange Act of 1934
    Case Name and/or Number: Fleming v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 05/07/1999
    Complaint for Violation of the Securities Exchange Act of 1934
    Case Name and/or Number: Casserly v. Network Associates, Inc., et al
    Type: Complaint Date on the document: 05/14/1999
    CIVIL DO