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Case Status:    DISMISSED    
On or around 04/01/2002 (Date of order of final judgment)

Filing Date: March 12, 1999

On April 1, 2002, the Court entered the Memorandum and Order signed by U.S. District Judge Melinda Harmon granting the defendants’ motion to dismiss the Second Amended Class Action Complaint. The Court further entered the Final Judgment and the consolidated putative class action was dismissed with prejudice.

As summarized by a previous FORM 10-K For The Fiscal Year Ended December 31, 2001, on December 12, 2000, USDC-Houston judge dismissed the consolidated amended complaint in the 1999 litigation after finding that it failed to comply with pleading requirements under the law. The plaintiffs filed a second amended complaint on January 31, 2001. Compaq moved to dismiss the second amended complaint on March 6, 2001 and is awaiting a ruling.

The original lawsuit charged defendants with violating the federal securities laws by misrepresenting and/or failing to disclose material information regarding weakening demand in certain market sectors which led to slower sales of Compaq's products in those markets and declining profitability from what Compaq and the market had forecast. It alleges that at the same time that Compaq was experiencing a slow down in sales to small and medium size businesses, particularly in
North America and Europe, defendants repeatedly made statements to the
market directly and through securities analysts that demand for Compaq's products and services remained strong. Defendants Mason, Strecker and Winkler and other executives of the Company took advantage of the inflated stock price by selling over $50 million in Compaq stock while those shares were trading at inflated prices. When Compaq belatedly revealed the slow down in demand and the fact that first quarter 1999 earnings would be less than half what Compaq and analysts had forecast, the price of Compaq shares plummeted, and investors who purchased Compaq securities were damaged thereby.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Hardware
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CPQ
Company Market: New York SE
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: S.D. Texas
DOCKET #: 99-CV-00779
JUDGE: Hon. Lee H. Rosenthal
DATE FILED: 03/12/1999
CLASS PERIOD START: 01/27/1999
CLASS PERIOD END: 02/25/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernard M. Gross
    1500 Walnut Street, Suite 600, Bernard M. Gross, PA 19102
    215.561.3600 215.561.3000 · bmgross@BernardMGross.com
  2. Caddell & Chapman

    713.751.0400 ·
  3. Emmons & Associates
    3990 Essex Ln at Weslayan. Ste 1116., Emmons & Associates , TX 77027
    713.522.4435 713.527.8850 · info@emmonsjackson.com/
  4. Savett Frutkin Podell & Ryan, P.C.

    800.993.3233 · sfprpc@op.net
No Document Title Filing Date
COURT: S.D. Texas
DOCKET #: 99-CV-00779
JUDGE: Hon. Lee H. Rosenthal
DATE FILED: 01/31/2001
CLASS PERIOD START: 01/27/1999
CLASS PERIOD END: 04/09/1999
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. Caddell & Chapman

    713.751.0400 ·
  3. Emmons & Associates
    3990 Essex Ln at Weslayan. Ste 1116., Emmons & Associates , TX 77027
    713.522.4435 713.527.8850 · info@emmonsjackson.com/
  4. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  5. Savett Frutkin Podell & Ryan, P.C.

    800.993.3233 · sfprpc@op.net
  6. Spector & Roseman, PC
    2000 Market Street, 12th Floor, Spector & Roseman, PC, PA 19103
    215.864.2400 ·
No Document Title Filing Date