Sigma Designs, Inc. Conclusion: According to the docket posted, on July 11, 2000, the Court entered the Order and Judgment by U.S. District Judge Jeremy Fogel granting the motion to dismiss the Corrected First Amended Complaint. The case was closed.
As previously reported by the Company’ FORM 10-K for the fiscal year ended January 31, 2000, in February 1998, two punitive class action complaints were filed against the Company in the United States District Court, Northern District Court of California, Romine, et al. v. Sigma Designs, Inc., et al., No. C-98-0537-TEC (N.D.Cal.) and Shah, et al. v. Sigma Designs, Inc., et al., No C-98-0582-MHP (N.D.Cal.). The federal court consolidated complaint alleges that Sigma Designs, Inc. and certain of its officers and former officers and/or directors, issued false or misleading statements regarding the Company’s business prospects during the period October 24, 1995 through February 13, 1997. The complaint does not specify the amount of damages sought by the plaintiffs. On October 8, 1999, the Company filed a motion to dismiss the consolidated complaint. In response to this motion, the plaintiffs agreed and filed a second amended complaint. On April 21, 2000, the Company filed a motion to dismiss the second amended complaint. The hearing on that motion is scheduled for June 26, 2000.
The complaint charges Sigma and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Sigma makes multimedia products for use in personal computer products, including MPEG products. The complaint alleges that during the Class Period, Sigma and the individual defendants made false and misleading statements about the state of Sigma's business, its finances, the success of its new marketing initiatives, the success of its development of newer products, demand for its products and its future prospects for the purpose of inflating the price of Sigma stock so they could complete an acquisition using shares as currency and sell 366,500 of stock they held at inflated prices for $3.7 million.
SIC Code: 3577
Industry: Computer Peripherals
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