According to the docket posted, on January 13, 2000, the Court entered the Mandate of the U.S. Court of appeals affirming the judgment of the district court.
As reported by the Company’s FORM 10-K for the fiscal year ended December 31, 1998, on January 31, 1997 an amended class action complaint consolidating two lawsuits filed in the fourth quarter of 1996 (the "Complaint") was filed in the United States District Court for the Southern District of New York against the Company and certain of its executive officers and directors. The Complaint was dismissed in November 1997, but the plaintiffs were granted the right to amend and refile. An amended Complaint was refiled December 19, 1997 and dismissed on December 29, 1998 without the right to refile. The dismissal was appealed by the plaintiffs to the United States Court of Appeals for the Second Circuit on January 28,
The original complaint charges Glenayre and certain of its executive officers and directors with violations of Sections 10 (b) and 20 (a) of the Securities Exchange Act of 1934, by, among other things, misrepresenting the financial condition of the Company. Among other things, the complaint alleges that defendants made numerous positive pronouncements about the Company's condition based on reference to its purportedly rising "firm backlog" of product orders. The Complaint alleges that, at all relevant times, the Company's reported and claimed "firm backlog" was not "firm" but was instead highly infirm, subject to numerous contingencies, and, in truth, the Company's orders were susceptible to cancellations and delays which undermined any claims of firmness. Because of the issuance of a series of materially false and misleading financial statements, the price of Glenayre stock was artificially inflated during the Class Period. This facilitated insider sales of Glenayre stock in excess of $50 million.