According to the latest docket, on March 30, 2001, the Court entered the Order by U.S. District Judge James M. Moody granting the motion to dismiss and the case was terminated. The plaintiffs soon after filed a Notice of appeal, and on September 23, 2002, the Court entered the Mandate from the Eighth Circuit Court of Appeals affirming the decision of the District Court.
The original complaint charges Acxiom and certain of its officers and directors with violations of the Securities Act of 1933. The complaint alleges that on July 23, 1999, Acxiom completed a secondary offering of stock pursuant to a Registration Statement/Prospectus that was false and misleading in that it contained false financial results and failed to describe the significance of Acxiom's recent contract renewal with its largest customer, Allstate. On August 29, 1999, Acxiom announced it was reducing its work force by 5% and laying off 250 employees. Then, on August 30, 1999, it was revealed that Acxiom was disseminating false financial results, was suffering from stiff competition and was lowering prices which would have a very negative impact on future earnings. Acxiom's stock price reacted swiftly and negatively to these revelations, falling to as low as $17-11/16 on huge volume of 5 million shares, nearly $11 below the offering price just six weeks earlier.