BMC Software, Inc. - Securities Class Action

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_______________
Copyright (c) 2001
Stanford Law School

BMC Software, Inc. Conclusion: According to the Company’s FORM 10-Q For The Quarterly Period Ended September 30, 2001, on October 1, 2001, the United States District Court for the Southern District of Texas dismissed with prejudice the consolidated federal securities action styled Dov Klein v. BMC Software, Inc., No. 00-CV-359. Plaintiffs have elected not to appeal the dismissal.

As previously disclosed by the Company’s FORM 10-Q For The Quarterly Period Ended June 30, 2001, on March 9, 2000, the court consolidated four similar actions, ordered that all subsequently filed similar actions be consolidated, and set out a briefing schedule. Subsequently, six additional cases were filed that made similar allegations. These cases were also consolidated into the main action. On August 14, 2000, the plaintiff filed a consolidated amended complaint. This complaint alleges a class of all persons who purchased BMC stock between July 29, 1999 and July 5, 2000. The Company has filed a motion to dismiss the complaints.

The original complaint charges BMC and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants' false and misleading statements about strong sales of BMC's existing software products, the successful integration of its acquisitions of Boole & Babbage and New Dimension Software earlier in 1999, strong demand for its mainframe MIPS software, notwithstanding a slow down in sales of IBM mainframe computers, and the lack of customer deferrals of orders or purchases due to Y2K concerns, which would result in 25%-30% EPS growth for BMC during F00-F01 and 3rd and 4thQ F00 EPS of .55 and .64, respectively, artificially inflated its stock to a Class Period high of $86-5/8 on January 3, 2000. During the Class Period, BMC insiders and controlling shareholders sold 1,085,015 shares of their BMC stock at as high as $78.83 for $63.1 million in proceeds. On January 5, 2000, just two days after BMC's stock hit its all-time high, BMC revealed that, due to problems integrating the BMC, Boole & Babbage and New Dimension sales forces, sales execution procedures in Europe and the U.S., and weakness in demand for mainframe MIPS software products, its 3rdQ F00 results would be much worse than earlier forecast. BMC's stock fell from $85-1/8 on January 4, 2000 to $47, an almost 50% drop in one day, and when BMC reported 3rdQ F00 EPS of just $.41, a decline from its 2ndQ F00 EPS and its year-earlier 3rdQ F99 EPS, its stock continued to fall to just $36.

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

COMPANY/ISSUER NAME:	BMC Software, Inc.
COMPANY/ISSUER TICKER:	BMC
COMPANY WEBSITE:	http://www.bmc.com/

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Don Klein, et al. v. BMC Software, Inc., et al.

COURT: S.D. Texas	DOCKET NUMBER: 00-CV-00359
JUDGE NAME: Hon. Kenneth M. Hoyt
DATE FILED: 02/04/2000	SOURCE: Notice
CLASS PERIOD START: 07/29/1999	CLASS PERIOD END: 01/04/2000
TYPE OF COMPLAINT: Unamended/Unconsolidated
PLAINTIFF FIRMS IN THIS OR SIMILAR CASE:
Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA) 225 Broadway, Suite 1900, San Diego, CA, 92010 (voice) 619.702.7350, (fax) 619.702.7351, Hoeffner, Bilek & Eidman 440 Louisiana, suite 720, Houston, TX, 77002-1634 (voice) 713.227.7720, (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 Rabin & Peckel LLP 275 Madison Avenue, 34th Floor, New York, NY, 10016 (voice) 212.682.1818, (fax) 212.682.1892, email@rabinlaw.com Spector Roseman & Kodroff (San Diego) 1818 Market Street, Suite 2500, Philadelphia, PA, 19103 (voice) 215.496.0300, (fax) 215.496.6611, Stull, Stull & Brody (New York) 6 East 45th Street, New York, NY, 10017 (voice) 310.209.2468, (fax) 310.209.2087, SSBNY@aol.com Wolf Haldenstein Adler Freeman & Herz LLP 270 Madison Avenue, New York, NY, 10016 (voice) 212.545.4600, (fax) 212.686.0114, newyork@whafh.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 7

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Complaint For Violation Of The Securities Exchange Act Of 1934
Type: Complaint		Date on the document: 2/4/2000
Order Granting Motion To Appoint The BMC Software Plaintiff Pursuant To §D(a)(3)(B) Of The Securities Exchange Act Of 1934 And To Approve Lead Plaintiff’s Selection Of Lead Counsel
Type: Order		Date on the document: 06/13/2000

REFERENCE COMPLAINT

In Re: BMC Software, Inc. Securities Litigation

COURT: S.D. Texas	DOCKET NUMBER: 00-CV-00359
JUDGE NAME: Hon. Kenneth M. Hoyt
DATE FILED: 08/14/2000	SOURCE: Business Wires
CLASS PERIOD START: 07/29/1999	CLASS PERIOD END: 07/05/2000
TYPE OF COMPLAINT: Consolidated and/or Amended
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Emerson Poynter LLP 2228 Cottondale Avenue, Suite 100, Little Rock, AR, 72202 (voice) 800.663.9817, (fax) 501.907.2556, epllp@emersonpoynter.com Greenberg, Peden, Siegmyer & Oshman 12 Greenway Plaza, 10th floor, Houston, TX, 77046 (voice) 713.627.2720, (fax) 713.627.7050, Hoeffner, Bilek & Eidman 440 Louisiana, suite 720, Houston, TX, 77002-1634 (voice) 713.227.7720, (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 Schwartz, Junell, Campbell & Oathout, LLP 909 Fannin - Suite 2000, Houston, TX, 77010 (voice) 713.752.0017, (fax) 713.752.0327, Stull, Stull & Brody (New York) 6 East 45th Street, New York, NY, 10017 (voice) 310.209.2468, (fax) 310.209.2087, SSBNY@aol.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 6

DOCUMENTS FOR THE REFERENCE COMPLAINT
Consolidated Amended Complaint For Violation Of The Securities Exchange Act Of 1934
Type: Complaint		Date on the document: 8/14/2000
Final Judgment of Dismissal
Type: Order		Date on the document: 10/01/2001
Memorandum and Order
Type: Order		Date on the document: 10/01/2001
U.S. District Court Civil Docket
Type: Docket		Date on the document: 11/13/2001

OTHER DOCUMENTS
Class Action Complaint For The Violation Of Federal Securities Laws
Case Name and/or Number: Dean Francola, et al. v. BMC Software, Inc., et al.
Type: Complaint		Date on the document: 08/01/2000
Docket
Case Name and/or Number: Dean Francola, et al. v. BMC Software, Inc., et al.
Type: Complaint		Date on the document: 08/24/2000
U.S. District Court Civil Docket
Case Name and/or Number: Dean Francola, et al. v. BMC Software, Inc., et al.
Type: Docket		Date on the document: 10/05/2000

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