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Case Status:    SETTLED
On or around 12/06/2005 (Date of order of final judgment)

Filing Date: February 28, 2001

According to a press release dated December 9, 2005, Intershop Communications AG announces a settlement with the plaintiffs of the securities class action, which had been pending in the USA for several years due to alleged misinformation by the Company in the year 2000. On December 5, 2005, a Court in California gave its final approval for the class action settlement. The court declared the settlement as fair to the class. The Company was convinced that this class action would not have been successful; yet decided to settle in order to avoid further litigation expenses.

By the Notice of Pendency and Proposed Settlement of Class Action dated September 30, 2005, a settlement fund in the amount of US$3,151,392.56 in cash has been established. The Court will hold a fairness hearing at 9:00 a.m., on December 5, 2005, at the United States Courthouse, 280 South 1st Street, San Jose, California. At this hearing the Court will consider whether the Settlement is fair, reasonable, and adequate. The Court will also consider how much to pay to Co-Lead Counsel.

According to the docket posted, on June 6, 2001, the Court entered the Stipulation and Order granting the motion to consolidate the cases, and appoint lead plaintiffs and lead plaintiff’s counsel. On August 9, 2001, a Consolidated Amended Complaint was filed. The defendants responded with motions to dismiss, and on April 25, 2002, the Court entered the Order granting in part and denying in part the motions to dismiss consolidated complaint. On July 19, 2002, a Second Amended Complaint was filed, and on April 14, 2003, a Third Amended Class Action Complaint was filed. Defendants filed a motion to dismiss the Third Amended Complaint, which was granted in part and denied in part in an Order entered on July 25, 2003. On September 30, 2005, a Stipulation of Settlement was filed and preliminarily approved that same day.

The original complaint charges that defendants violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 by providing a materially false and misleading Registration Statement and Prospectus in connection with the Company's IPO. Specifically, the Complaint alleges that representations made in the Registration and Prospectus indicating that the Company was expanding their leadership position and was poised for success were false and misleading. Instead, the Company was experiencing a substantial decline is sales for core business as well as weakening of demand for many of its products. The Company disclosed the extent of the problems it was facing on January 1, 2001. This necessitated a reduction of both revenue and earnings expectations for the fourth quarter of 2000, the price of Intershop ADS plummeted, falling in excess of $10.00 per share to close at $4.8125.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Networks
Headquarters: Germany

SECURITIES INFORMATION:

Ticker Symbol: ISHP
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: N.D. California
DOCKET #: 01-CV-20333
JUDGE: Hon. James Ware
DATE FILED: 02/28/2001
CLASS PERIOD START: 05/02/2000
CLASS PERIOD END: 01/03/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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 ·
  2. Faruqi & Faruqi LLP (New York) (former)
    320 East 39th Street, Faruqi & Faruqi LLP (New York) (former), NY 10016
    212.983.9330 212.983.9331 · Nfaruqi@faruqilaw.com
  3. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  4. 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
  5. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  6. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  7. Schubert & Reed LLP
    Two Embarcadero Center, Suite 1050, Schubert & Reed LLP, CA 94111
    415.788.4220 415.788.0161 · mail@schubert-reed.com
  8. Shalov Stone & Bonner LLP
    276 Fifth Avenue, Suite 704, Shalov Stone & Bonner LLP, NY 10001
    212.686.8004 212.686.8005 · lawyer@lawssb.com
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 01-CV-20333
JUDGE: Hon. James Ware
DATE FILED: 04/14/2003
CLASS PERIOD START: 09/29/2000
CLASS PERIOD END: 01/03/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco)
    100 Pine Street, Suite 2600, Lerach Coughlin Stoia Geller Rudman & Robbin (San Francisco), CA 94111
    415.288.4545 415.288.4534 · info@lerachlaw.com
  2. Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA)
    100 Pine Street - Suite 2600, Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA), CA 94111
    415.288.4545 415.288.4534 ·
  3. 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
  4. Shalov Stone & Bonner LLP
    276 Fifth Avenue, Suite 704, Shalov Stone & Bonner LLP, NY 10001
    212.686.8004 212.686.8005 · lawyer@lawssb.com
No Document Title Filing Date
No Document Title Filing Date