Case Page

 

Case Status:    DISMISSED    
On or around 04/14/2004 (Other)

Filing Date: September 28, 2001

According to the Company’s FORM 10-Q for the quarterly period ended September 30, 2004, the Company and certain of its officers and directors were named as defendants in a consolidated amended complaint that was filed in the United States District Court for the Northern District of Georgia on October 9, 2002. The lawsuit purported to be brought on behalf of a class of investors who purchased the Company’s stock during the period from April 5, 2001 through August 14, 2001. The lawsuit alleged violations of the federal securities laws. On September 3, 2003, the court dismissed, with prejudice, the consolidated amended complaint and all rights to appeal expired in May 2004.

On November 28, 2001, the Court entered the Order granting the motion to consolidate the cases. On July 31, 2002, the Court entered the Order granting the motion to appoint lead plaintiffs and to approve lead plaintiffs’ selection of counsel. According to the Order, lead plaintiffs are Flynn-Lampman Living Trust, William Hadley, Sean McGrath and Dagney Hein and lead co- counsel are Berger & Montague, P.C. and Chitwood & Harley.

The original class action lawsuit has been filed against Internet Security Systems, Inc. alleging that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. The Complaint alleges that Defendants
issued materially false and misleading statements throughout the Class Period that had the effect of artificially inflating the market price of the Company's securities. The complaint further alleges that Defendants had the information to determine that the Company could not live up to the expectations created by these statements. As a result of statements like these, the securities markets were misled and, as a result, the price of ISS securities was artificially inflated throughout the Class Period. The complaint also alleges that during this period of artificial inflation, Company insiders took advantage of their insider status to sell thousands of their own shares of ISS stock at artificially high prices for proceeds of over $18 million. The
Complaint also alleges that during this period, the Company further took
advantage of the artificially inflated share prices by using ISS stock as
currency to acquire another company, Network ICE Corporation. On July 2, 2001, however, Defendants revealed that rather than achieving revenues of $64-67 million for the second quarter as they had led investors to expect, the
Company's revenues were actually in the $50-52 million range. Instead of
earning $0.15 to $0.16 per share, the Company would actually suffer losses of up to $0.02 per share. Ultimately, the Company announced losses of $0.13 per share for the quarter. The Complaint alleges that as a result of these
announcements, ISS stock fell by more than 40% in one day, and ISS stock that traded between $40 and $60 per share during much of the class period is now worth less than $10 per share.

COMPANY INFORMATION:

Sector: Technology
Industry: Software & Programming
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ISSX
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. Georgia
DOCKET #: 01-CV-02601
JUDGE: Hon. Willis B. Hunt Jr.
DATE FILED: 09/28/2001
CLASS PERIOD START: 04/04/2001
CLASS PERIOD END: 07/02/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  3. Cauley Geller Bowman Coates & Rudman LLP (Little Rock, AR)
    P.O. Box 25438, Cauley Geller Bowman Coates & Rudman LLP (Little Rock, AR), AR 72221-5438
    501.312.8500 501.312.8505 ·
  4. Chitwood & Harley LLP
    1230 Peachtree Street, N.E., 2300 Promenade II, Chitwood & Harley LLP, GA 30309
    888.873.3999 404.873.4476 · info@chitwoodlaw.com
  5. Keller Rohrback LLP (Seattle)
    1201 Third Avenue, Suite 3200, Keller Rohrback LLP (Seattle), WA 98101-3052
    800.776.6044 206.623.3384 · investor@kellerrohrback.com
  6. 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
  7. Leo W. Desmond
    2161 Palm Beach Lakes Boulevard, Suite 204, Leo W. Desmond, FL 33409
    561.712.8000 561.712.8000 · stocklaw@bellsouth.net
  8. Levy & Levy

    ·
  9. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  10. 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: N.D. Georgia
DOCKET #: 01-CV-02601
JUDGE: Hon. Willis B. Hunt Jr.
DATE FILED: 10/09/2002
CLASS PERIOD START: 04/04/2001
CLASS PERIOD END: 07/02/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. Chitwood & Harley LLP
    1230 Peachtree Street, N.E., 2300 Promenade II, Chitwood & Harley LLP, GA 30309
    888.873.3999 404.873.4476 · info@chitwoodlaw.com
No Document Title Filing Date
No Document Title Filing Date