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Case Status:    SETTLED
On or around 04/17/1997 (Date of order of final judgment)

Filing Date: January 26, 1996

The original complaint was filed alleging the sales of WINCheckIt and WIN '95 Advisor were overstated, because the product sold to distributors was subject to an absolute right of return. In December 1995, Touchstone revealed that it would suffer a large loss for the fourth quarter of 1995 and for the entire year of 1995. Touchstone's stock price fell by as much as 75% after these disclosures. The complaint alleges that Touchstone's 10Q's for the prior three quarters were materially false and misleading because: (1) they were not prepared in accordance with generally accepted accounting principles; (2) they materially overstated the net income and earnings per share; (3) they failed to disclose material problems with sales, orders, and collection of ode sections 25400, 25401, 25402, 25502 and intentional and negligent breach of fiduciary duties.

On January 26, 1996, the complaint entitled DARRIN J. CARAMONTA v. LARRY W. DINGUS, ET AL. was filed in United States District Court for the Central District of California, in which Mr. Caramonta, on behalf of himself and all others who purchased the Company's Common Stock between May 2, 1995 and December 21, 1995. On March 13, 1996, and on March 21, 1996, substantially similar actions entitled JACK BODNER v. Larry W. Dingus, et al. and MARC JAFFE v. LARRY W. DINGUS, ET AL., respectively, were also filed in the same Court.

On April 17, 1997 the Court entered a "Final Judgment and Order of
Dismissal" approving the settlement and dismissing the class action in its
entirety. Under the principal terms of the agreement, Touchstone Software Corporation established a settlement fund consisting of $500,000 and 200,000 newly-issues shares of common stock. The Company also adopted a written policy on insider trading.


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


Ticker Symbol: TSSW
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: C.D. California
DOCKET #: 96-CV-00081
JUDGE: Hon. Gary L. Taylor
DATE FILED: 01/26/1996
CLASS PERIOD END: 12/21/1995
  1. Dyer, Donnelly & Lilly
    825 Logan Street, Dyer, Donnelly & Lilly 80203-3114
    303.861.3003 ·
  2. Milberg Weiss Bershad Hynes & Lerach LLP (Los Angeles, CA)
    355 S Grand Ave - Ste 4170, Milberg Weiss Bershad Hynes & Lerach LLP (Los Angeles, CA), CA 90071-3172
    213.617.9007 ·
  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 ·
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