Case Page

 

Case Status:    SETTLED
On or around 05/24/1999 (Date of order of final judgment)

Filing Date: July 15, 1997

According to the firm's 10-Q filing dated 8/13/1999, in March 1999, the Company, together with the individually named defendants, entered into a Stipulation and Agreement of Settlement (the "Stipulation") with the plaintiffs, under which the parties have agreed to settle the lawsuit upon the following principal terms: (i) payment of $4,100,000 made by the Company's insurers to plaintiffs; and (ii) the dismissal of the lawsuit against all defendants and related parties, with prejudice, but without any admission of liability or wrongdoing. On May 24, 1999, the court entered a final order and judgement approving the terms of the Stipulation and dismissing all of the claims in this action.

Between July 1997 and September 1997, eight separate lawsuits were filed against the Company and two of its current or former executive officers. In February 1998, the lawsuits were consolidated pursuant to a revised consolidated complaint filed by plaintiffs. The consolidated complaint extended the class period on behalf of a class of persons, other than defendants and their affiliates, who purchased the Company's common stock or call options on the Company's common stock, or who sold put options on the Company's stock, during the period March 6, 1996 through July 30, 1997.

The original complaint charges CTSC and Stephen Katz, CTSC's CEO and Chairman, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 arising from CTSC's representations regarding its cellular fraud prevention systems and revenue and profits associated therewith. Specifically, the complaint alleges that CTSC and certain of its officers and directors
participated in a fraudulent scheme by representing that the technology
employed by CTSC with respect to its Blackbird platform was controlled by
patents either owned or licensed by CTSC. In reality, the patents covering this
technology are owned by at least two other parties, at least one of which is a
direct competitor of CTSC.

The complaint further alleges that during the Class Period, based on the representations of CTSC that its technology was "proprietary," CTSC shares soared to reach a high of $21.00 on October 16, 1996. As the truth regarding the false claims of CTSC to have control of the patents underlying their technology was slowly divulged, CTSC shares dropped as low as $5.44 per share on July 22, 1997, closing at $6.125 per share on July 28, 1997, the last day of the Class Period.

COMPANY INFORMATION:

Sector: Technology
Industry: Software & Programming
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CTSC
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: W.D. Washington
DOCKET #: 97-CV-1155
JUDGE: Hon. William L. Dwyer
DATE FILED: 07/15/1997
CLASS PERIOD START: 11/14/1996
CLASS PERIOD END: 06/30/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohen Milstein Hausfeld & Toll PLLC (Seattle WA)
    701 Fifth Avenue, Suite 6860, Cohen Milstein Hausfeld & Toll PLLC (Seattle WA), WA 98014
    206.521.0080 206.521.0166 · lawinfo@cmht.com
  2. Jaroslawicz & Jaros (former NY)
    150 William Street, Jaroslawicz & Jaros (former NY), NY 10038
    212.227.2780 ·
  3. Levin Fishbein Sedran & Berman (former)
    320 Walnut Street, 6th Floor , Levin Fishbein Sedran & Berman (former), PA 19106
    215.592.1500 ·
  4. Savett Frutkin Podell & Ryan, P.C.

    800.993.3233 · sfprpc@op.net
No Document Title Filing Date
COURT: W.D. Washington
DOCKET #: 97-CV-1155
JUDGE: Hon. William L. Dwyer
DATE FILED: 02/17/1998
CLASS PERIOD START: 03/06/1996
CLASS PERIOD END: 07/30/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  3. Yarmuth Wilsdon PLLC
    1201 Third Ave - Suite 3080, Yarmuth Wilsdon PLLC, WA 98101-3000
    206.516.3800 206.516.3888 ·
No Document Title Filing Date