Verity, Inc. Conclusion: According to the Company’s Form 10-Q for the quarterly period ended August 31, 2001, the complaints were consolidated into a single action, and in August 2000, the complaint was dismissed without prejudice with leave to amend. The plaintiffs re-filed an amended complaint, and Verity filed a motion to dismiss this amended complaint on October 27, 2000. By order dated February 13, 2001, the court granted the motion in part and denied it in part. The court dismissed with prejudice all claims except a single claim relating to alleged communications with a securities analyst near the end of Verity’s second fiscal 2000 quarter. On July 24, 2001, council for plaintiffs agreed to voluntarily dismiss the action with prejudice, and without an award of costs or fees to any party. The court ordered the case dismissed on July 27, 2001.
The original complaint charges that these insiders violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5) and profited from their actions by selling stock worth approximately $8.8 million at artificially inflated prices during the Class Period. The complaint further alleges that the Class suffered damages as a result of a scheme and common course of conduct by defendants which operated as a fraud and deceit on the Class during the Class Period. According to the complaint, defendants' scheme included rendering false and misleading statements and/or omissions concerning the present and future financial condition and business prospects of the Company, as well as the financial benefits that would enure to Verity and its shareholders.
SIC Code: 7374
Industry: Software & Programming
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