According to a Press Release dated April 4, 2001, Cambridge Technology Partners (Massachusetts), Inc. (NASDAQ:CATP), a global e-Solutions provider, announced that the United Stated District Court for the District of Massachusetts dismissed with prejudice the securities class action litigation filed in March 1999 against Cambridge and certain of the Company's former officers. (Carney, et al. v. Cambridge Technology Partners (Massachusetts), Inc., et al., Civil Action No. 99-CV-10630-RCL). The litigation, which was brought in the wake of Cambridge's announcement on March 18, 1999 that it was revising downward its revenue and earnings estimates for the first quarter and full year 1999, alleged that Cambridge and certain of its former officers had made misleading statements about the Company's business and financial condition in order to inflate the Company's share price.
The original Complaint alleges that the defendants violated the federal securities laws (Section 10(b) and 20(a) of the Securities Exchange Act of 1934) by misrepresenting or failing to disclose material information about Cambridge's results of operations,
financial condition and the failure of its reorganization plan which resulted in the continued slow sales.
The complaint further alleges that as a result of defendants' false and misleading statements and omissions, the price of Cambridge's stock was artificially inflated. Later, the Company announced that its reorganization plan was not having the benefits defendants stated it had and that as a result its sales were still well down. Meanwhile defendants took advantage of the stock's artificially inflated
price to sell significant amounts of their own holdings for proceeds of over $3,139,000.