The original complaint alleges Defendant engaged in a course of conduct that was designed to, and did deceive the investing public, including Plaintiff and other members of the Class concerning the financial condition of the Company by, inter alia, (a) failing to reflect the materially impaired value of substantial assets and goodwill reflected on the Company's financial statements; (b) failing to characterize accurately the amount of its short-term debt; (c) materially misrepresenting the number of its subscribers, its revenue per subscriber, and its so-called "churn rate"; (d) artificially inflating the market price of Heartland stock during the Class Period; (e) allowing certain officers and directors to knowingly and improperly take advantage of the Company's artificially inflated stock during the Class Period by selling large blocks of their individual Heartland holdings for large profits; and (f) causing substantial loss to Plaintiff and other members of the Class. In furtherance of this plan and course of conduct, Defendant took the actions as set forth herein.
On December 15, 1998, defendant Heartland Wireless filed a Notice of Bankruptcy, and on December 17, 1998, the Court entered the Order administratively closing the action as to Heartland without prejudice to being reopened after the related bankruptcy proceeding is concluded or the stay is lifted. On January 4, 1999, the plaintiffs filed a First Amended Complaint. The defendants responded by filing a motion to dismiss the First Amended Complaint. On July 8, 1999, the motion was granted with leave to amend. On August 23, 1999, the plaintiffs filed a Second Amended Complaint. The defendants responded by filing a motion to dismiss the Second Amended Complaint.
On June 19, 2000, the Court entered the Order and Judgment granting the motion to dismiss the plaintiffs’ second amended complaint with prejudice. The Plaintiff filed a Notice of Appeal, and on March 22, 2002, the Court entered the Judgment of the Fifth Circuit Court of Appeals dismissing the appeal.