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Case Status:    SETTLED
On or around 11/25/2002 (Date of order of final judgment)

Filing Date: April 16, 1998

According to the latest docket, on November 22, 2002, U.S. District Judge Vanessa D. Gilmore granted the joint motion for attorney fees and compensation awards. Further, Judge Gilmore issued a Final Judgment and Order dismissing the case with prejudice. Soon after, a Notice of Appeal was filed by the plaintiffs regarding attorney fees. On February 7, 2003, the USCA ordered the appellant’s motion of appeal dismissed.

By the Notice of Pendency and Proposed Settlement of Class Action dated July 26, 2002, a settlement hearing will be held on November 1, 2002. The purpose of the Settlement Hearing will be to determine whether to certify the Class, whether the proposed settlement of the claims in the Litigation for the sum of $28,650,000 plus interest should be approved by the Court, whether to approve the Plan of Allocation is fair, reasonable and adequate; (4) whether the application for an award of attorneys’ fees and reimbursement of costs and expenses and an award to Lead Plaintiffs should be approved; and (5) whether the Litigation should be dismissed with prejudice.

As summarized in the same Notice of Pendency, on February 28, 2002, Lead Plaintiffs renewed their motion for class certification. Hearing on that motion was set for April 19, 2002, and subsequently adjourned in view of the ensuing settlement discussions.In January 2002, the parties began discussing settlement in earnest. In March 2002, the parties retained Gary V. McGowan, Esq. of Houston as mediator, and a mediation session was held on April 9-10, 2002 in New York City. All four of the Lead Plaintiffs participated in the mediation. With Mr. McGowan’s assistance, the parties reached agreement on the principal terms of the Settlement set forth in the Stipulation.

On January 20, 2000, Plaintiffs moved for certification of the Class. Lead Plaintiffs Mark Berger, Mark A. Salitan, Michael A. Brown and John Butler, were deposed. By Order dated July 18, 2000, the District Court directed that the Litigation proceed as a class action on behalf of all purchasers of Compaq securities during the Class Period, and appointed the four Lead Plaintiffs as class representatives. On July 28, 2000, Defendants again petitioned the Court of Appeals, seeking review of the class certification order pursuant to Fed. R. Civ. P. 23(f). The Court of Appeals granted that petition on October 6, 2000. On November 15, 2000, Defendants moved the District Court for a stay of all proceedings pending determination of their Rule 23(f) appeal. The District Court denied that motion on January 19, 2001. Defendants next moved the Court of Appeals, on January 23, 2001, for a stay pending determination of their appeal, which motion was granted on February 6, 2001. On July 25, 2001, the Court of Appeals reversed and vacated the class certification order. On August 8, 2001, Plaintiffs filed a petition for rehearing or rehearing en banc, which the Court of Appeals denied by order and opinion dated January 14, 2002.

On May 17, 1999, Defendants moved pursuant to Fed. R. Civ. P. 9(b) and 12(b)(6) to dismiss the Litigation in its entirety. That motion was denied on December 21, 1999, and on January 20, 2000, Defendants moved for reconsideration of the Court’s decision or, alternatively, for certification under 28 U.S.C. § 1292(b). Defendants’ motion for reconsideration was subsequently denied on March 10, 2000. Defendants petitioned the Court of Appeals for the Fifth Circuit for a writ of mandamus on the denial of their motion to dismiss, on July 27, 2000, requesting that Court to direct the District Court to dismiss the Amended Complaint. The Court of Appeals denied Defendants’ mandamus petition on August 8, 2000.

By Order dated January 15, 1999, the District Court consolidated the various actions, appointed the 39 lead plaintiffs, and approved the lead plaintiffs’ selection of Wolf Haldenstein Adler Freeman & Herz LLP and Stull Stull & Brody as Lead Counsel. This consolidated suit is referred to herein as the “Litigation”. The Consolidated Amended Class Action Complaint (the “Amended Complaint”) alleges that Defendants violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5 by issuing materially false and misleading statements regarding Compaq’s sales, revenues, and business model during the Class Period. The Amended Complaint also alleges that Defendants’ conduct operated as a fraud on the market for Compaq securities throughout the Class Period.

The original Complaint charges Compaq and certain of its officers and directors with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 for misrepresenting material information concerning Compaq's financial results by failing to inform the market that the Company's reported growth in sales and earnings was actually the product of "channel stuffing" and factoring of receivables, which were short term strategies of borrowing sales from future periods resulting in artificially inflated earnings.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Hardware
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CPQ
Company Market: New York SE
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: S.D. Texas
DOCKET #: 98-CV-01148
JUDGE: Hon. Lee H. Rosenthal
DATE FILED: 04/16/1998
CLASS PERIOD START: 07/10/1997
CLASS PERIOD END: 03/06/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Hoeffner, Bilek & Eidman
    440 Louisiana, suite 720, Hoeffner, Bilek & Eidman, TX 77002-1634
    713.227.7720 ·
  2. Kohn, Swift & Graf, P.C.
    One South Broad Street - Suite 2100, Kohn, Swift & Graf, P.C. , PA 19107
    215.238.1700 215.238.1960 · info@kohnswift.com
  3. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  4. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date
COURT: S.D. Texas
DOCKET #: 98-CV-01148
JUDGE: Hon. Lee H. Rosenthal
DATE FILED: 03/16/1999
CLASS PERIOD START: 07/10/1997
CLASS PERIOD END: 03/06/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Chitwood & Harley LLP
    1230 Peachtree Street, N.E., 2300 Promenade II, Chitwood & Harley LLP, GA 30309
    888.873.3999 404.873.4476 · info@chitwoodlaw.com
  3. Curtis V. Trinko LLP
    16 West 46th Street 7th Floor, Curtis V. Trinko LLP, NY 10036
    212.490.9550 212.986.0158 · ctrinko@trinko.com
  4. Finkelstein, Thompson & Loughran
    1050 30th Street, NW, Finkelstein, Thompson & Loughran, DC 20007
    202.337.8000 202.337.8090 · contact@ftllaw.com
  5. Hoeffner, Bilek & Eidman
    440 Louisiana, suite 720, Hoeffner, Bilek & Eidman, TX 77002-1634
    713.227.7720 ·
  6. Innelli and Molder
    325 Chestnut Street, Suite 903, Innelli and Molder, PA 19106
    215.627.3394 215.627.3397 · admin@innellilaw.com
  7. Kohn, Swift & Graf, P.C.
    One South Broad Street - Suite 2100, Kohn, Swift & Graf, P.C. , PA 19107
    215.238.1700 215.238.1960 · info@kohnswift.com
  8. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  9. 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
  10. Wirtz & Associates
    16161 Ventura Boulevard, Suite 669, Wirtz & Associates, CA 91436
    310.576.7770 ·
  11. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date