Case Page

 

Case Status:    DISMISSED    
On or around 10/16/1998 (Other)

Filing Date: October 10, 1997

According to the latest docket posted, on May 5, 2000, a Second Amended Consolidated Complaint was filed against the remaining defendants, and on August 8, 2000, the defendants responded by filing a motion to dismiss the Second Amended Complaint. On October 30, 2000, the Court entered the Order by Judge Jeremy Fogel granting motion to dismiss Second Amended Complaint. Judgment dismissing the case was entered on October 31, 2000. On November 22, 2000, the plaintiffs filed a notice of appeal, and on June 3, 2002, the Court entered the copy of the judgment from the U.S. Court of Appeals affirming the decision of the District Court.

As previously reported by the Company’s FORM 10-K For the Fiscal Year Ended March 31, 2000, the following actions have been filed against the Company, its officer, Cowen & Company and a Cowen analyst. The action, In re Rational Software Securities Litigation, No. 21001-JF (N.D. Cal. May 26, 1998) is a consolidated action supplanting prior complaints filed against defendants. The actions are putative shareholder class action lawsuits. The complaint alleges that defendants violated Sections 10(b) and 20A of the Securities Exchange Act of 1934 through the selective disclosure of material inside information regarding the Company's prospects and seek damages on behalf of a class of shareholders who purchased the Company's Common Stock on October 8, 1997. Plaintiffs have dismissed the Complaint as against the Company and its officer.

The original Complaint charges Rational, certain of its officers, and Cowen & Company, Inc. ("Cowen"), with violations of federal securities laws. Plaintiff complains of Rational's dissemination of material inside information regarding Rational's business prospects on a selective and discriminatory basis. Plaintiff contends that Rational provided material inside information to Cowen during the course of the day of October 8, 1997, permitting Cowen to inform its institutional
clients and let them dump shares of Rational prior to full and proper disclosure of such information on a widespread basis to the investing public. Only after the market closed did Rational inform the investing public of the downward forecast of the Company's prospects.

Several similar, purported class action complaints were filed in the U.S. District Courts for the Eastern District of New York and Eastern District of Virginia. Those complaints have been transferred to the U.S. District Court for the District of Massachusetts and have subsequently been consolidated with the lead case.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: RATL
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: N.D. California
DOCKET #: 97-CV-21001
JUDGE: Hon. Susan Illston
DATE FILED: 10/10/1997
CLASS PERIOD START: 10/08/1997
CLASS PERIOD END: 10/08/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Lionel Z. Glancy
    1801 Avenue of the Stars Suite 308, Lionel Z. Glancy, CA 90067
    310.201.9150 ·
  2. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
  3. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 97-CV-21001
JUDGE: Hon. Susan Illston
DATE FILED: 05/05/2000
CLASS PERIOD START: 10/08/1997
CLASS PERIOD END: 10/08/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berman DeValerio Pease Tabacco Burt & Pucillo (FL)
    515 North Flagler Drive - Suite 1701, Berman DeValerio Pease Tabacco Burt & Pucillo (FL), FL 33401
    561.835.9400 ·
  2. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  3. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    401 B Street, Suite 1700, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    206.749.5544 206.749.9978 · info@lerachlaw.com
  4. Wechsler, Harwood, Halebian & Feffer, LLP
    488 Madison Avenue, Wechsler, Harwood, Halebian & Feffer, LLP, NY
    212.935.7400 10022 ·
  5. Weiss & Lurie (Los Angeles)
    10940 Wilshire Blvd., 24th Floor, Weiss & Lurie (Los Angeles), CA 90024
    310.208.2800 310.209-2348 · info@wllawca.com
No Document Title Filing Date
No Document Title Filing Date