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Case Status:    SETTLED
On or around 12/30/2002 (Date of order of final judgment)

Filing Date: August 23, 2000

According to the docket, on October 20, 2002, the Court entered the Order signed by U.S. District Judge Gerard L. Goettel granting preliminary approval of the settlement. On December 30, 2002, the Court entered the Final Judgment and Order of Final Approval, and the case was closed. On December 18, 2003, the Court entered the Order granting the distribution of the class settlement funds.

In a press release dated October 29, 2002, Mercator Software, Inc. announced it reached an agreement to settle the consolidated stockholder litigation initially filed against the Company in August, 2000, in federal district court. A Stipulation of Settlement has been executed and filed with the Court. The terms of the Stipulation of Settlement, which are subject to final court approval and notice to class members, include no admission of liability by the Company. Under the terms of the settlement, Mercator's directors and officers liability insurance carriers will pay $8.2 million to resolve all claims related to the stockholder litigation. The Company also announced that a shareholder derivative action was filed in Connecticut Superior Court on October 25, 2002, on behalf of two individual persons who are currently members of the class alleging facts substantially similar to the allegations in the consolidated stockholder litigation. The Company believes the shareholder derivative action is without merit and intends to seek dismissal of it in connection with the settlement of the consolidated stockholder litigation.

Between August 23, 2000 and September 21, 2000 a series of fourteen purported securities class action lawsuits was filed in the United States District Court for the District of Connecticut (the “Court”), naming as defendants Mercator and former officers of the Company. On or about November 24, 2000, these lawsuits were consolidated into one lawsuit captioned: In re Mercator Software, Inc. Securities Litigation, Master File No. 3:00-CV-1610 (GLG). The lead plaintiffs purported to represent a class of all persons who purchased Mercator’s Common Stock from April 20, 2000 through and including August 21, 2000. Each complaint in the consolidated action alleged violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, through alleged material misrepresentations and omissions and seeks an unspecified award of damages. On January 26, 2001, the lead plaintiffs filed an amended complaint in the consolidated matter with substantially the same allegations. On March 12, 2001, the defendants responded by filing a motion to dismiss the Amended Consolidated Class Action Complaint. On September 14, 2001, U.S. District Judge Gerard L. Goettel issued a ruling denying the motion to dismiss.

The original complaint alleges that Mercator and certain of its officers issued false and misleading financial statements and press releases to the investing public concerning the Company's publicly reported revenues, earnings, and expenses. Moreover, the Company omitted to state material information necessary to be issued in order to make prior statements not misleading. Specifically, on August 21, 2000, after the market had closed, Mercator shocked the investing community by announcing that the Company restated and lowered first- and second-quarter 2000 earnings to account for approximately $2.4 million of under-reported expenses for the period. In addition, the Company stated that it made key management changes to strengthen financial controls and oversight, including the termination of several members of upper management. The Company said that discrepancies in the reporting of expenses surfaced in a review by outside auditors. Following the review, the Company appointed a new chairman and stated that defendant Kevin McKay, its chief financial officer, only appointed four weeks ago, resigned.

COMPANY INFORMATION:

Sector: Technology
Industry: Software & Programming
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: MCTR
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. Connecticut
DOCKET #: 00-CV-01610
JUDGE: Hon. Gerard L. Goettel
DATE FILED: 08/23/2000
CLASS PERIOD START: 04/20/2000
CLASS PERIOD END: 08/21/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Barrack, Rodos & Bacine (San Diego - former)
    402 West Broadway , Barrack, Rodos & Bacine (San Diego - former), CA 92101
    619.230.0800 619.230.1874 · info@barrack.com
  2. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  3. Berman DeValerio Pease Tabacco Burt & Pucillo (MA)
    One Liberty Square, Berman DeValerio Pease Tabacco Burt & Pucillo (MA), MA 2109
    617.542.8300 617.230.0903 · info@bermanesq.com
  4. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  5. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  6. Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA)
    225 Broadway, Suite 1900, Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA), CA 92010
    619.702.7350 619.702.7351 ·
  7. Leo W. Desmond
    2161 Palm Beach Lakes Boulevard, Suite 204, Leo W. Desmond, FL 33409
    561.712.8000 561.712.8000 · stocklaw@bellsouth.net
  8. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  9. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  10. Rabin & Peckel LLP
    275 Madison Avenue, 34th Floor, Rabin & Peckel LLP, NY 10016
    212.682.1818 212.682.1892 · email@rabinlaw.com
  11. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  12. Spector Roseman & Kodroff (San Diego)
    1818 Market Street, Suite 2500, Spector Roseman & Kodroff (San Diego), PA 19103
    215.496.0300 215.496.6611 ·
  13. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
  14. 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. Connecticut
DOCKET #: 00-CV-01610
JUDGE: Hon. Gerard L. Goettel
DATE FILED: 02/06/2001
CLASS PERIOD START: 04/20/2000
CLASS PERIOD END: 08/21/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. 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 ·
  3. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
No Document Title Filing Date