According to the docket, on June 11, 2002, the Court entered the Stipulation and Order of Voluntary Dismissal. Pursuant to Rules 41(a) and 23(e) of the FRCP, plaintiffs dismiss the action, and all claims against the defendants, without prejudice and without costs to any party. The case is closed.
On April 19, 2002, the Court issued an Amended Stipulation and Order of dismissal of the action pursuant to Rules 41(a) and 23(e) of the FRCP as to defendants Credit Suisse First Boston Corp., The Goldman, Sachs Group, Inc., Morgan Stanley Dean Witter & Co., Bancboston Robertson Stephens, Inc. and Salomon Smith Barney, Inc. without prejudice, with each party to bear its own costs.
On September 5, 2001, the Court issued the Order finding that cases involving Internet in the IPO Securities Litigation shall be consolidated into case number 01-CV-2858. The Clerk of the Court was ordered to close all cases that have been consolidated, subject to re-opening at a later date. On October 3, 2001, the Court issued a Notice reassigning the case to Judge Shirley W. Kram and the case was reopened.
The complaint alleges that defendants violated the federal securities laws by artificially inflating the prices of Class Securities, to defendants' benefit, by systematically issuing research reports (including favorable "buy" recommendations) which contained the same uniform omissions of material facts, including: (a) the alleged material fact that the internal operations of defendants effectively mandated that defendants' analysts issue a favorable recommendation as an adjunct to defendants' obtaining (and their analysts' directly or indirectly sharing in) investment banking fees and other fees and business from the issuer of a Class Security; and (b) the alleged material fact that defendants and their employees, including analysts, frequently acquired shares of class securities at a fraction of the price that public investors later paid therefor and would profit from research reports that enabled the analyst, his or her employer, and his or her co-workers to sell their holdings at generally higher prices.
The complaint also alleges that defendant Merrill Lynch violated the Securities Act of 1933 because the Prospectus distributed to investors and the Registration Statement filed with the SEC in order to gain regulatory approval for the Internet Infrastructure HOLDRs offering failed to disclose that the prices of the HOLDRs constituent securities had been artificially inflated by defendants' misleading research reports and recommendations as set forth above.
Note: This Class action lawsuit was filed on behalf of all investors that during the class period acquired securities from the following issuers:
- Internet Infrastructure HOLDRs (AMEX:IIH),
- Exodus Communications, Inc (NasdaqNM:EXDS),
- Inktomi Corp. (NasdaqNM:INKT),
- Vitria Technology, Inc. (NasdaqNM:VITR),
- Software.com (formerly listed as NasdaqNM:SWCM, now known as Openwave Systems, Inc. (NasdaqNM:OPWV)),
- E.piphany, Inc. (NasdaqNM:EPNY)