According to the latest docket posted, on June 4, 2002, the Court entered the Memorandum signed by U.S. District Judge Nancy Gertner granting the defendants’ motion to dismiss the consolidated class action complaint. That same day, the Court entered the Order of Dismissal and the case was closed. On July 1, 2002, the plaintiffs filed a notice of appeal and later dismissed the appeal.
The original complaint charges defendants with making false and misleading statements and omissions concerning the Company’s business and its publicly reported financial results during the Class Period in violation of sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and 10b-5 promulgated thereunder. Among other things, the Complaint alleges that: (i) on and after November 8, 1999, defendants made false and misleading statements concerning the Company’s financial condition, results of operations and prospective growth; and (ii) on December 7, 1999, defendants falsely stated that Open Market’s new e-commerce software product, Golden Gate, would allow it to compete effectively with larger rivals when in fact defendants knew or recklessly disregarded that Golden Gate was still in the early stages of development and that the Company’s competitors were already offering more flexible, easy-to-use and customize e-commerce applications. When the Company announced after the close of trading on April 18, 2000 that its financial losses in the first quarter of 2000 would be greater than expected, its stock price dropped 23% from $14-7/8 to close at $11-5/16 on April 19, 2000, down 83% from a Class Period high of $65-3/8 on March 9, 2000.