In a press release dated December 11, 2001, a federal judge last week approved a $5.75 million settlement in a shareholders' suit against Unisys Corp. and awarded the plaintiffs' lawyers one-third of the fund, or nearly $1.9 million. Senior U.S. District Judge Clarence C. Newcomer also awarded the plaintiffs' team in In Re: Unisys Corp. Securities Litigation more than $572,000 in costs.
According to the docket, on June 20, 2000, the defendants filed a motion to dismiss the Consolidated Amended Complaint. On September 21, 2000, the Court entered the Memorandum and Order signed by U.S. District Judge Clarence C. Newcomer which denied the defendants’ motion to dismiss the complaint.
The original Complaint charges that Unisys and three of its highest officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The Complaint alleges that defendants issued materially misleading press releases purporting to describe large contracts with major customers, which failed to reveal that the contracts were subject to regulatory and other contingencies, and therefore could not be expected to generate revenues in the near future. The Complaint further alleges that defendants utilized their inside information regarding the artificial inflation of the Company's stock price to sell significant amounts of their personal Unisys stock holdings, for proceeds of over $4 million. In addition, the complaint alleges that the artificial inflation of the price of Unisys stock permitted the company to complete an acquisition of Pulsepoint Communications for fewer shares of stock.