A Stipulation and Agreement of Settlement with sole remaining Defendant Arthur Andersen LLP was entered into the Court on February 4, 2005. According to the Stiulation and Agreement of Settlement, the Gross Andersen Settlement Fund is in the amount of $2.9 million. On May 26, 2005, the Court entered the Order and Final Judgment.

On October 1, 2004, the Court issued the Order consolidating complaints filed in 2003 with Civil Action No. 01-CV-00418. Also, on October 1, 2004, Johnson & Perkinson, and co-counsel obtained final approval settlement of $84.85 million with i2 Technologies and present and former executives. On June 24, 2004, the United States District Court for the Northern District of Texas preliminarily approved the settlement which also requires i2 to adopt a series of corporate-governance reforms and includes the assignment to the class of the company's claims against i2's former auditors, Arthur Andersen LLP, against whom the litigation continues.

The original complaint charges that the company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the company's business, and as a result, the company's stock traded at artificially inflated prices during the class period. Specifically, during the class period, unbeknownst to investors, Nike Inc., one of i2's significant customers, was experiencing problems with the implementation of i2's software, which put i2's relationship with Nike at material risk. Nevertheless, according to the complaint, defendants issued a series of materially false and misleading statements which failed to disclose, among other things, that the company was experiencing software implementation difficulties with Nike and that these problems were material and severe and damaging the company's relationship with Nike. On 02/26/2001, after the close of the market, Nike issued a press release revising its third quarter and fiscal 2001 earnings because, among other things, of complications arising from the impact of implementing its new demand and supply planning systems which were developed by i2. By the end of the day, i2's stock closed at $27.56, down 22% from the previous day's close of $35.50. Prior to the above disclosure, certain insiders took advantage of the inflated stock by selling, in aggregate more than $97 million in i2 stock to the investing public.