According to the Order entered on June 16, 2004, U.S. District Judge Laura Taylor Swain denying the plaintiffs' Motion for Reconsideration. The Notice of Motion for Reconsideration was originally filed by the plaintiffs on January 13, 2004, after the Court entered the Clerk’s Judgment, in compliance with the Judge’s Memorandum Opinion and Order, in favor of the defendants and against plaintiffs. The Memorandum Opinion and Order by Judge Laura Taylor Swain was entered on December 29, 2003, granting the defendants’ motion to dismiss the amended complaint with prejudice and without leave to amend.
On July 13, 1999, the Court entered the Order by Judge J.S. Letts granting the motion to change venue to the U.S. District Court for the Southern District of New York. The case was transferred from the U.S. District Court for the Central District of California to the Southern District of New York.
The original complaint charges IMI and certain of its officers, directors, controlling shareholders and its underwriters with violations of the Securities Exchange Act of 1934. Specifically, the complaint alleges that during the Class Period, defendants made false and misleading statements about the successful introduction of, and strong demand for and sales of, IMI's System ESS software product, the success of IMI's joint marketing program with Oracle Corp., IMI's dramatically shortening sales cycle, the successful expansion of IMI's business into European markets and of IMI's direct sales force, all of which they represented would result in F98 and F99 (to end April 30, 1998 and April 30, 1999, respectively) earnings per share ("EPS") of $.34-$.37 and $.46-$.58 for IMI and 40% EPS growth for IMI going forward. These representations artificially inflated IMI's stock to a Class Period high of $33-5/8 and allowed IMI, its insiders and its controlling shareholders to sell or dispose of 10.5 million shares of IMI stock via a October 31, 1997 secondary offering at $20 and open market stock sales at as high as $30.59 for total proceeds of $226.2 million.