According to the latest docket posted, on June 14, 2002, the Defendants filed a motion to dismiss and the hearing was held for the motion to dismiss on November 20, 2002. By the Memorandum Decision entered on December 2, 2002, U.S. District Judge Dale A. Kimball granted the motion to dismiss the Plaintiffs' Amended Proposed Class Action Complaint for Violations of Federal Securities Laws. The case is closed.
The original complaint charges that defendants violated Sections 10(b) and 20(a)
of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated
thereunder, by issuing a series of material misrepresentations to the
market between October 18, 1999, and March 2, 2000, thereby artificially
inflating the price of First Security common stock. For example, as
alleged in the complaint, on January 19, 2000, the Company reported
earnings of $0.37 per share during its fourth quarter of fiscal 1999,
constituting an increase over the comparable quarter of 1998. In fact,
the Company's fourth quarter earnings per share were affected by an
undisclosed one-time nonrecurring gain of $0.04 per share. Thus the
Company's true operating performance was $0.33 per share, representing a
decrease over the comparable 1998 period. When the Company revealed, on
March 3, 2000, that its operating results for the fourth fiscal quarter
would fall short of estimates, the price of First Security common stock
dropped by 38%, falling from $22.50 per share, to $13.968 per share.