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Case Status:    SETTLED
On or around 08/24/2005 (Date of order of final judgment)

Filing Date: February 14, 2001

According to the docket, on August 24, 2005, the Court entered the Final Judgment and Order of Dismissal with Prejudice. U.S. District Judge Gerard E. Lynch approved the settlement and dismissed the action.

By the Notice of Proposed Settlement of Class Action dated June 3, 2005, the parties have reached a cash settlement in the amount of $4,400,000. A hearing will take place on August 11, 2005, for the purpose of determining whether: (1) the proposed Settlement is fair, reasonable and adequate and appropriate of Court approval; (2) the proposed Plan of Distribution is fair, just, reasonable, and adequate; (3) the Court should approve applications of Lead Plaintiffs’ Counsel for an award of attorneys’ fees, costs and expenses; and (4) the Court should enter Final Judgment and Order of Dismissal with Prejudice dismissing the Litigation with prejudice as against Defendants.

As summarized by the same Notice, by Order of the Court, entered June 26, 2001, Waterview Partners, Adam Burstyn, Robert James Kennedy, Eli Mann and Joseph Rosenbaum were appointed Lead Plaintiffs; the law firms of Stull, Stull & Brody and Weiss & Lurie were appointed Co-Lead Counsel and the Lead Plaintiffs were directed to cause an amended complaint to be filed under Civil Action Number 01 CV 1125 (GEL). The Amended Class Action Complaint (the “Complaint”) was filed on August 15, 2001. On November 21, 2001, defendants, moved to dismiss the Complaint. Lead Plaintiffs opposed the motions to dismiss and thereafter, by Opinion and Order dated September 30, 2002, the Court dismissed Howard A. Tullman as a defendant, denied the motion to dismiss of the Defendants with respect to the Section 10(b) and Rule 10b-5 allegations in the Complaint, and granted the motion without prejudice to renew Plaintiffs’ Section 20(a) control allegations. On or about October 17, 2003, the Court issued an Order allowing Waterview Partners to withdraw as a Lead Plaintiff and from consideration as a class representative. On November 5, 2003, the Court issued an order conditionally certifying the Litigation as a class action. Following the denial of the Defendants’ motion to dismiss Plaintiffs’ 10(b) claims, discovery commenced in the case. In late 2004, Lead Counsel and counsel for the Defendants entered into earnest settlement negotiations. As a result of these negotiations, counsel for the Defendants and Lead Counsel have agreed to enter into a Stipulation of Settlement which is dated May 12, 2005.

The original complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, by issuing a series of material misrepresentations to the market between 11/29/1999 and 11/15/2000, thereby artificially inflating the price of Xceed securities. Specifically, the complaint alleges that defendants filed quarterly and annual reports with the SEC that contained financial statements which were materially false and misleading as they were prepared in violation of Generally Accepted Accounting principles and the company's own accounting procedures. In its filing, the company repeatedly overstated its revenues and understated its losses by, among other things: (a) underreporting its allowance for uncollectible accounts receivable; (b) underreporting and miscomputing the amortization of intangible assets relating to workforce, customer base, technical know-how and industry contacts in connection with its acquisition of Zabit & Associates, Inc.; (c) failing to review, identify and/or take the appropriate charge for the impairment of its long-lived assets; and (d) using the percentage of completion method of accounting for reporting revenues for fixed-price contracts in violation of GAAP. As a result of this undisclosed conduct, the company's stock was trading at artificially inflated prices throughout the class period.

NOTE: On April 30, 2001, Xceed filed for Chapter 11 protection under the United States Bankruptcy Code. This filing triggered an automatic stay of the claims in the Litigation against Xceed, which has since been liquidated.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: XCED
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: S.D. New York
DOCKET #: 01-CV-01125
JUDGE: Hon. Gerard E. Lynch
DATE FILED: 02/14/2001
CLASS PERIOD START: 11/29/1999
CLASS PERIOD END: 11/15/2000
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. Bull & Lifshitz
    18 East 41st St., Bull & Lifshitz, NY 10017
    212.213.6222 212.213.9405 ·
  3. 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 ·
  4. Law Offices of Leo W. Desmond
    2161 Palm Beach Lakes Blvd., Suite 204, Law Offices of Leo W. Desmond, FL 33409
    888.337.6663 · Info@SecuritiesAttorney.com
  5. 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
  6. Rabin & Peckel LLP
    275 Madison Avenue, 34th Floor, Rabin & Peckel LLP, NY 10016
    212.682.1818 212.682.1892 · email@rabinlaw.com
  7. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  8. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
  9. 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
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 01-CV-01125
JUDGE: Hon. Gerard E. Lynch
DATE FILED: 08/15/2001
CLASS PERIOD START: 11/29/1999
CLASS PERIOD END: 11/15/2000
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. Bull & Lifshitz
    18 East 41st St., Bull & Lifshitz, NY 10017
    212.213.6222 212.213.9405 ·
  3. Kantrowitz, Goldhamer & Graifman
    747 Chestnut Ridge Road, Kantrowitz, Goldhamer & Graifman, NY 10977
    845.356.2570. 845.356.4335 ·
  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. Murray, Frank & Sailer LLP
    275 Madison Ave 34th Flr, Murray, Frank & Sailer LLP, NY 10016
    212.682.1818 212.682.1892 · email@murrayfrank.com
  6. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  7. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
  8. Weiss & Lurie (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Lurie (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
  9. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
No Document Title Filing Date
No Document Title Filing Date