On 10/21/1999, the court entered the Final Judgment & Order by Judge Saundra B. Armstrong dismissing action with prejudice.

According to the firm's 10-Q filing dated 8/16/1999, on May 5, 1999, the Company announced that it reached a preliminary settlement of the Copperstone State Action and the Copperstone Federal Action. The settlement involves payment of an amount comprised of proceeds from the Company's Director and Officer insurance policies. Neither the Company nor the individuals involves in the lawsuit contributed to the settlement of the actions. According to the firm's 10-Q, the settlement did not have a material effect on TCSI's financial position or on its financial results of operations.

The complaint in the Copperstone Federal Action contains virtually identical factual allegations as the Copperstone State Action, and alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. Specifically, the original complaint alleges that defendants artificially inflated TCSI's stock to as high as $29-3/4 per share based on representations that TCSI was enjoying very strong demand for its products that was generating large contracts, resulting in TCSI achieving substantial sequential revenue and earnings gains, which would continue throughout 1996 and 1997. On April 20, 1998, the Court ordered plaintiffs to certify a class.