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Case Status:    SETTLED
On or around 03/23/2000 (Date of order of final judgment)

Filing Date: March 05, 1998

According to docket posted for this case, on March 22, 2000, U.S. District Judge Dickinson R. Debevoise granted the motion for approval of the settlement and disbursement of attorney fees and expenses. The case was ordered closed. However, on May 8, 2000, the case was reopened with respect to claims against certain defendants in the case. Judge Debevoise ultimately granted the distribution of settlement fund and the case was closed on December 26, 2000.

The complaint asserts that PCNI and three of its officers violated the Securities Exchange Act of 1934 by publishing false and misleading financial statements, reporting fictitious profits of $10 million in 1997, when in fact, the Company had suffered losses, now estimated to range from $77 million to $81 million. The plaintiff, a purchaser of PCNI shares, alleges that the market price of the stock was artificially inflated during the Class Period as a result of the misrepresentations. TD On March 3, 1998, the Company revealed that it would be restating its financial statements for the first three quarters of 1997, because rather than achieving net earnings as previously announced, the Company had incurred a net loss in each of the three quarters. Following this announcement PCNI common stock lost more than 70% of its value. On April 2, 1998, the Company further stunned the investing public by revealing that actual losses from 1997 operations will range between $77 and $81 million, and that the Company's auditors, KPMG Peat Marwick, have withdrawn their auditor's report on the Company's 1996 financial statements, adding that these statements should not be relied upon. Following this announcement, trading was halted for the Company's stock on NASDAQ. The Complaint alleges that PCNI and its top officers intentionally or recklessly overstated the Company's income by improperly recognizing items of income, and failing to recognize items of expense, and misstated the Company's financial condition, including cash balances, accounts receivable, good will, and other assets, in order to secure a $110 million credit facility. This credit facility was announced on Sept. 12, 1997. According to the Complaint, if not for the false earnings, the Company could not have obtained this credit on favorable terms or at all.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: PCNI
Company Market: NASDAQ
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: D. New Jersey
DOCKET #: 98-CV-00981
JUDGE: Hon. Maryanne T. Barry
DATE FILED: 03/05/1998
CLASS PERIOD START: 04/29/1997
CLASS PERIOD END: 03/02/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohn, Lifland, Pearlman, Herrmann & Knopf
    Park 80 Plaza West-One, Cohn, Lifland, Pearlman, Herrmann & Knopf, NJ 7663
    201845.9600 · info@njlawfirm.com
  2. Epstein, Fitzsimmons, Brown, Ringle, Gioia & Jacobs
    245 Green Village Road - P.O. Box 901, Epstein, Fitzsimmons, Brown, Ringle, Gioia & Jacobs, NJ 07928
    973.593.4900 ·
  3. Gellerstein & Saul, Esqs.
    1485 Teaneck Road, Suite 300, Gellerstein & Saul, Esqs., NJ 07666
    201.837.1090 ·
  4. Kalikman and Masnik
    30 Washington Avenue, Kalikman and Masnik, NJ 08033
    ·
  5. Lite DePalma Greenberg, LLC (Newark)
    Two Gateway Center - 12th Floor, Lite DePalma Greenberg, LLC (Newark), NJ 07102-5003
    973.623.3000 ·
  6. Wolf Popper, LLP
    845 Third Avenue, Wolf Popper, LLP, NY 10022-6689
    877.370.7703 212.486.2093 · IRRep@wolfpopper.com
No Document Title Filing Date
COURT: D. New Jersey
DOCKET #: 98-CV-00981
JUDGE: Hon. Maryanne T. Barry
DATE FILED: 10/13/1998
CLASS PERIOD START: 04/29/1997
CLASS PERIOD END: 03/02/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Abbey Gardy & Squiteri LLP (San Francisco)
    595 Market Street, Suite 2500, Abbey Gardy & Squiteri LLP (San Francisco), CA 94105
    415.538.3725 ·
  2. Bernstein Litowitz Berger & Grossmann LLP (Westfield, NJ)
    220 St. Paul Street, Bernstein Litowitz Berger & Grossmann LLP (Westfield, NJ), NJ 07090
    908.928.1700 908.301.9008 · blbg@blbglaw.com
No Document Title Filing Date