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Case Status:    SETTLED
On or around 07/30/2001 (Other)

Filing Date: January 21, 1998

According to the Notice of Settlement for the state action, on July 29, 1999, the Honorable Martin J. Jenkins granted plaintiffs' request for voluntary dismissal of the federal action without prejudice. The State Action and the Federal Action are collectively referred to herein as the "Litigation." The settlement fund for the Litigation consists of $5.0 million in case plus accrued interest.

The suit was originally filed on July 3, 1997, in Superior Court of the State of California. A trust claiming to have purchased shares of the Common Stock filed the suit entitled David T. O'Neal Trust, Dated 4/1/77, v. Vanstar Corporation, et al.,
Consolidated Case No. CV767266. On January 21, 1998, the same plaintiff, along
with another plaintiff claiming to have purchased shares of Common Stock, filed
suit in the United States District Court for the Northern District of
California, making allegations virtually identical to those in the earlier suit.

The complaint charges VanStar, which sells computer products and services to corporate customers, and certain of its officers, directors and its investment bankers with violations of the California Corporations, Civil and Business & Professions Codes.

The complaint alleges that VanStar, its controlling shareholders, insiders
and investment bankers misrepresented VanStar's business and prospects,
enabling defendants to take VanStar public, at $10 per share, raising $74.7
million for VanStar, to reduce VanStar's debt burden and simultaneously create
a trading market in VanStar stock so that when defendants drove VanStar stock
toward its Class Period high of $29-3/4 per share, certain VanStar insiders
could sell off over 665,000 shares of their VanStar stock at as high as $25.88
per share, for about $15 million, to sell securities convertible into its
common stock to raise an additional $200 million to further reduce its debt
burden and to issue (sell) an additional 1.3 million shares of its stock to
make three acquisitions, all in just nine months.

But, then in late January 1997, when defendants revealed weak demand for
VanStar's computer products, VanStar's impaired competitive position, the
slowing growth of its services business, its failure to complete the
development or implementation of its NOVA system and that its inability to
control its rapidly escalating overhead expenses would result in sharply
declining earnings per share and diminished prospects for future EPS growth,
VanStar's stock declined to $6-1/2 per share.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: VST
Company Market: New York SE
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: N.D. California
DOCKET #: 98-CV-216
JUDGE: Hon. Martin J. Jenkins
DATE FILED: 01/21/1998
CLASS PERIOD START: 03/11/1996
CLASS PERIOD END: 01/23/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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
  2. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 98-CV-216
JUDGE: Hon. Martin J. Jenkins
DATE FILED: 03/11/1999
CLASS PERIOD START: 03/11/1996
CLASS PERIOD END: 03/14/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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
  2. Law Offices of Steven E. Cauley, P.A. (Little Rock)
    Suite 210, Cypress Plaza. 2200 N. Rodney Parham Road, Law Offices of Steven E. Cauley, P.A. (Little Rock), AR 72212
    501.312.8500 501.312.8505 · cauleypa@aol.com
  3. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
No Document Title Filing Date
No Document Title Filing Date