According to the docket posted, on October 1, 1998, the Court entered the Order by U.S. District Judge Claude M. Hilton granting the defendants’ motion to dismiss the Amended Class Action Complaint. The case was dismissed and closed. A Notice of Appeal was soon after filed by the plaintiffs. On October 13, 1999, the Court entered the certified copy of the judgment from the Fourth Circuit Court of Appeals affirming the decision in the District Court.
Previously, on June 24, 1998, the defendants filed a motion to dismiss the complaint. On July 6, 1998, the Court entered the Order by U.S. District Judge Claude M. Hilton appointing lead plaintiffs and approving co-lead counsel. On July 21, 1998, the Court entered the Order granting the defendants’ motion to dismiss the complaint with leave to amend. On August 4, 1998, the plaintiffs filed an Amended Class Action Complaint, and on August 21, 1998, the defendants responded by filing a motion to dismiss the Amended Class Action Complaint.
The original complaint alleges defendants engaged in a fraudulent scheme, in violation of the federal securities laws, the purpose of which was to artificially depress the price of LCI stock. On February 17, 1998, defendants unequivocally denied that LCI was for sale. To the contrary, defendants stated that, if anything, LCI would consider acquiring other telecommunications companies, but would not be acquired. Based upon this information, plaintiff sold his LCI stock. However, defendants failed to disclose that the Company was, in fact, involved in serious negotiations with Qwest Communications International, Inc. ("Qwest") to be acquired and had been involved in "sincere" negotiations for many months. On March 9, 1998, less than three weeks later, the Company announced that Qwest would acquire LCI in an all-stock transaction.