Indus International Inc. - Securities Class Action

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_______________
Copyright (c) 2001
Stanford Law School

Indus International Inc. Conclusion: According to the docket posted, on January 30, 2001, the Court entered the Orders granting the motions for approval of the plan of allocation and for attorneys' fees and reimbursement of expenses. The Court awarded Representative Plaintiffs' Counsel attorneys' fees of twenty-five percent of the Settlement Fund and expenses in an aggregate amount of $110,098.81 together with the interest earned. The Court further entered that day the Final Judgment and Order of dismissal with prejudice by Magistrate Judge Joseph C. Spero, and the case was terminated.

As reported by the Company’s Form 10-Q for the quarterly period ended September 30, 2000, in August 2000, all parties to the litigation agreed to a settlement. Under the settlement, defendants' insurance carriers will pay plaintiffs $4.3 million. On October 27, 2000 the Court granted preliminary approval of the settlement. The Court has scheduled a January 26, 2001 hearing to consider whether the settlement will be given final approval. The Company also is cooperating with an informal investigation by the Securities and Exchange Commission regarding the restatement.

Earlier, according to the same SEC filing, the Company and several of its former officers and/or directors have been named as defendants in six substantially identical securities class action cases filed since February 3, 2000, in the United States District Court, Northern District of California (the Court). The cases subsequently were consolidated. The complaints are brought on behalf of all persons who purchased the Company's common stock between October 28, 1999, when the Company issued a press release announcing unaudited financial statements for the third quarter of 1999, through January 27, 2000, when the Company announced its intention to restate those financial statements. The Plaintiffs have not demanded any particular amount in damages.

The original complaint charges Indus and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Indus provides enterprise asset management software and service solutions. The Company's products are used to improve operational business functions for energy, manufacturing, industrial and other companies that have capital-intensive operations. Indus was formed in June 1997 through a merger and reorganization of TSW International, Inc. and The Indus Group, Inc. After the merger, Indus' stock traded in the $10 to $15 range for a short time and then decreased to the $5 to $8 range for the second half of 1998 and most of 1999 as Indus reported little in the way of revenue growth, particularly on license fees which had substantially higher gross margins than service and maintenance fee revenues. In early 1999, Indus hired new management in order to correct this shortfall. In late October 1999, Indus announced its results for the third quarter ended September 30, 1999, including better-than-expected license revenues of $9.935 million. On December 9, 1999, Indus announced a new business model including a strong focus on electronic business. These announcements caused Indus' stock to increase dramatically to as high as $13-5/8 per share. Then on January 27, 2000, Indus admitted that its third quarter 1999 results had been false with license revenue overstated by $5 million. On these shocking disclosures, Indus' stock price declined to as low as $5-15/16 per share from $9-11/16 the day earlier. One individual defendant took advantage of Indus' inflated stock price, selling 175,000 of shares for proceeds exceeding $2.1 million.

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

COMPANY/ISSUER NAME:	Indus International Inc.
COMPANY/ISSUER TICKER:	IINT
COMPANY WEBSITE:	http://www.indusgroup.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Cancemi, et al. v. Indus International, Inc., et al.

COURT: N.D. California	DOCKET NUMBER: 00-CV-392
JUDGE NAME: Magistrate Judge Joseph C. Sper
DATE FILED: 02/03/2000	SOURCE: Complaint
CLASS PERIOD START: 10/29/1999	CLASS PERIOD END: 01/27/2000
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Bernstein Litowitz Berger & Grossmann LLP (Westfield, NJ) 220 St. Paul Street, Westfield, NJ, 07090 (voice) 908.928.1700, (fax) 908.301.9008, blbg@blbglaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Notice of Motion and Memorandum of Points and Authorities in Support of Approval of Plan of Allocation of Settlement Proceeds
Type: Notice		Date on the document:
CIVIL DOCKET FOR CASE #: 00-CV-392
Type: Docket		Date on the document: 2/3/2000
Class Action Complaint for Violations of the Federal Securities Laws
Type: Complaint		Date on the document: 2/3/2000
Consent to Assignment to Magistrate Judge
Type: Motion		Date on the document: 2/24/2000
Notice 0f Related Case
Type: Notice		Date on the document: 2/24/2000
Order
Type: Order		Date on the document: 03/02/2000
Declaration of Christopher P. Seefer in Support of Motion to Appoint the Indus International Lead Plaintiff Group as Lead Plaintiff Pursuant to
Type: Declaration		Date on the document: 04/04/2000
Notice of Motion, Motion and Memorandum of Points and Authorities to Appoint the Indus International Lead Plaintiff Group as Lead Plaintiff Pursuant to
Type: Notice		Date on the document: 04/04/2000
Notice of Motion, Motion and Memorandum of Points and Authorities to Consolidate Related Actions Against Indus International, Inc., et al.
Type: Notice		Date on the document: 04/04/2000
Declaration of Christopher P. Seefer in Support of the Indus International Lead Plaintiff Group's Reply to Defendants' Response to Plaintiffs' Motion to Consolidate
Type: Declaration		Date on the document: 04/28/2000
The Indus International Lead Plaintiff Group's Reply to Defendants' Response to Plaintiffs' Motion to Consolidate
Type: Other		Date on the document: 04/28/2000
Joint Statement in Support of Preliminary Approval of Settlement
Type: Other		Date on the document: 10/06/2000
[Proposed] Order Preliminarily Approving Settlement and Providing for Notice
Type: Order		Date on the document: 10/06/2000
Stipulation of Settlement
Type: Other		Date on the document: 10/06/2000
Declaration of Joy Ann Bull in Support of
Type: Declaration		Date on the document: 01/05/2001
Declaration of Patrick J. Coughlin in Support of Plaintiffs' Application for Approval of Settlement
Type: Declaration		Date on the document: 01/05/2001
Notice of Motion and Memorandum of Points and Authorities in Support of Final Approval of Settlement
Type: Notice		Date on the document: 01/05/2001
Notice of Motion and Memorandum of Points and Authorities in Support of Plaintiffs' Application for Attorneys' Fees and Reimbursement of Expenses
Type: Notice		Date on the document: 01/05/2001
[Proposed] Final Judgment and Order of Dismissal With Prejudice
Type: Other		Date on the document: 01/05/2001
[Proposed] Order Approving Plan of Allocation of Settlement Proceeds
Type: Order		Date on the document: 01/05/2001
[Proposed] Order Awarding Representative Plaintiffs' Counsel's Fees and Reimbursement of Expenses
Type: Order		Date on the document: 01/05/2001
U.S. District Court Civil Docket
Type: Docket		Date on the document: 02/06/2001

OTHER DOCUMENTS
CIVIL DOCKET FOR CASE #: 00-CV-436
Case Name and/or Number: Adams et al v. Indus International, et al
Type: Docket		Date on the document: 2/8/2000
Complaint for Violation of the Securities Exchange Act of 1934
Case Name and/or Number: Adams et al v. Indus International, et al
Type: Complaint		Date on the document: 2/8/2000
Notice of related case (.pdf file)
Case Name and/or Number: Adams et al v. Indus International, et al
Type: Notice		Date on the document: 2/8/2000
Notice to preserve documents pursuant to local rule 16-1(g)(4) (.pdf file)
Case Name and/or Number: Adams et al v. Indus International, et al
Type: Notice		Date on the document: 2/8/2000
CIVIL DOCKET FOR CASE #: 00-CV-583
Case Name and/or Number: Sherman et al v. Indus Intern. Inc., et al
Type: Docket		Date on the document: 2/17/2000
Class Action Complaint for Violations of the Federal Securities Laws
Case Name and/or Number: Sherman et al v. Indus Intern. Inc., et al
Type: Complaint		Date on the document: 2/17/2000
CIVIL DOCKET FOR CASE #: 00-CV-592
Case Name and/or Number: Bennett et al v. Indus International, et al
Type: Docket		Date on the document: 2/18/2000
Complaint for Violation of the Securities Exchange Act of 1934
Case Name and/or Number: Bennett et al v. Indus International, et al
Type: Complaint		Date on the document: 2/18/2000
CIVIL DOCKET FOR CASE #: 00-CV-610
Case Name and/or Number: Haberle, et al v. Indus International, et al
Type: Docket		Date on the document: 2/22/2000
Complaint for Violation of the Securities Exchange Act of 1934
Case Name and/or Number: Haberle, et al v. Indus International, et al
Type: Complaint		Date on the document: 2/22/2000
Notice of related cases (.pdf file)
Case Name and/or Number: Haberle, et al v. Indus International, et al
Type: Notice		Date on the document: 2/22/2000
Notice to preserve documents pursuant to local rule 16-1(g)(4) (.pdf file)
Case Name and/or Number: Haberle, et al v. Indus International, et al
Type: Notice		Date on the document: 2/22/2000
Notice of Related Cases
Case Name and/or Number: Bennett v. Indus International, et al
Type: Notice		Date on the document: 2/24/2000
Notice of Related Cases
Case Name and/or Number: Bennett et al v. Indus International, et al
Type: Notice		Date on the document: 2/24/2000
Notice to Preserve Documents Pursuant to Local Rule 16-1(g)(4)
Case Name and/or Number: Bennett v. Indus International, et al
Type: Notice		Date on the document: 2/24/2000
Notice to Preserve Documents Pursuant to Local Rule 16-1(g)(4)
Case Name and/or Number: Bennett et al v. Indus International, et al
Type: Notice		Date on the document: 2/24/2000

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