According to a press release dated September 2, 1998, a class action suit filed on December 18, 1997, in the United States District Court for the Eastern District of New York (Civil Action No. CV-97-7457 (DRH)), alleging that Cognos, Inc. (Nasdaq: COGNF) and certain of its officers and directors violated the federal securities laws, has been voluntarily dismissed without prejudice. The class action was filed on behalf of purchasers of Cognos, Inc. common stock during the period of June 3, 1997 through September 25, 1997.

The Complaint asserts claims under the federal securities laws, including claims for violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and SEC Rule lOb-5. Plaintiff seeks to recover losses suffered by investors who purchased Cognos securities. The lawsuit alleges that Cognos and certain of its officers and directors engaged in a scheme to artificially inflate the market price of Cognos common stock during the Class Period, and enable Cognos insiders to sell their own shares at artificially high prices. During the Class Period, the defendants issued releases, statements and reports which misrepresented Cognos's business prospects and inflated the market price of Cognos's common stock, while Cognos insiders sold significant amounts of their stock holdings. Cognos' stock rose to approximately $31 per share, before the investing public was informed that the Company was experiencing a decline in orders for its products. On September 25, 1997, defendants finally revealed the truth about the weakening product orders, albeit buried within a press release that described Cognos' second quarter in glowing terms. On that very day, Cognos stock price plunged 32% from $32-3/4 per share, to $22-1/16 per share.