According to the Company’s FORM 10-Q For the Quarterly Period Ended: March 31, 2001, an amended complaint, consolidating these lawsuits into one action, was filed in the second quarter of 1999, seeking unspecified damages. In the third quarter of 1999, the Company filed a motion to dismiss the consolidated action. On March 29, 2001, the U.S. District Court for the District of Massachusetts granted the Company’s motion to dismiss and entered an order dismissing the consolidated action with prejudice. The applicable appeal period has expired and the plaintiffs have not appealed, which should conclude the litigation.
The original complaint alleges that throughout the Class Period, Parametric Technology publicly represented that Parametric would meet analysts' revenue and earnings expectations for the fiscal third quarter. On July 1, 1998, however, Parametric revealed that the company would fall $40 million short of this forecast. Prior to this disclosure, certain officers and directors of the company sold common stock, at an inflated price, to the unsuspecting investing public. The sale of this common stock allowed the officers and directors of Parametric to pocket over $6.8 million in proceeds. The plaintiffs charge Parametric Technology with violating the federal securities laws by misleading investors with false information about the company's business, operations, sales trends, and products and seek to recover damages.