According to the docket posted, on May 15, 2002, the Court entered the Order signed by U.S. District Judge Susan Illston granting the motions to dismiss the complaint. Further that day, the Court entered Judgment, and the case was closed.
On January 23, 2002, the Court entered the Order granting the motion of appoint lead plaintiffs and lead counsel. Radiant Advisers LLC and Frank E. Scott were appointed as Lead Plaintiffs, and Bernstein, Liebhard & Lifschitz, LLP Schiffrin & Barroway, LLP and Weiss & Yourman were appointed as Lead Counsel. On February 8, 2000, the plaintiffs filed a First Amended Complaint against all the defendants. The defendants responded by filing motions to dismiss on March 1, 2002.
In August 2001, the case was transferred from the U.S. District for the Southern District of New York to the U.S. District for the Northern District of California.
The original complaint alleges that defendants violated Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 by issuing a materially false and misleading Registration Statement and Prospectus (collectively, the Prospectus) in connection with Iasiaworks initial public offering (IPO) in August 2000. Specifically, the Prospectus misleadingly stated that the proceeds that would be raised from the IPO would be sufficient to fund several of the Company's needs for at least nine months, including the establishment of the first three large-scale Internet Data Centers needed to augment the small-scale centers then in existence. On November 27, 2000, the last day of the Class Period, defendants issued a press release indicating that it would be building data centers that were much larger than described in the Prospectus and at a much greater cost, so much so that the Company would be forced to borrow additional money to complete the project. The market's reaction to this announcement was swift and punitive. From a closing price of $7.81 on November 24, 2000, the stock slid to $6 3/8 on November 27, 2000, and to $4 7/16 on November 28, 2000, representing a 43% drops in just two days.