Case Page

 

Case Status:    DISMISSED    
On or around 06/28/2006 (Other)

Filing Date: November 01, 2001

According to the docket, on May 25, 2004, the plaintiffs filed a notice of appeal from the April 29, 2004 Order and Judgment dismissing the case. On June 28, 2006, the Court entered the Judgment from the Ninth Circuit U.S. Court of Appeals affirming the judgment of the District Court.

Previously, on September 13, 2002, the plaintiffs filed a Corrected First Amended Consolidated Class Action Complaint, and the defendants responded by filing motions to dismiss the complaint. On June 4, 2003, the Court entered the Order by U.S. District Judge Phyllis J. Hamilton granting the defendants’ motions to dismiss with leave to amend the complaint. On July 29, 2003, the plaintiffs filed a Second Amended Consolidated Class Action Complaint, and the defendants responded by filing motions to dismiss the complaint. On January 22, 2004, the plaintiffs filed a Corrected Second Amended Consolidated Class Action Complaint. On May 4, 2004, the Court entered the Order granting the motions to dismiss the second amended complaint with prejudice.

The original complaint was filed alleging that defendants violated Sections 11, 12, and 15 and the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between June 21, 1999 and July 2, 2001, thereby artificially inflating the price of Metricom common stock. Specifically, the complaint alleges that certain defendants, beginning in June 1999, issued statements concerning Metricom business, financial results and operations which failed to disclose or only partially disclosed three material agreements with MCI WorldCom, Inc. ("WorldCom"). These material transactions were: (i) a Reseller Agreement, executed June 20, 1999 (initially disclosed to the public on November 5, 1999); (ii) a Global Services Agreement, executed
October 3, 2000, which required Metricom to pay to WorldCom substantial
"termination" fees, and (iii) an Agreement whereby WorldCom was to supply
selected telecommunications equipment, office equipment, and related office
product to Metricom. Neither of the last two material agreements nor the
creation of substantial contingent liability were ever disclosed to the public.
On February 7, 2000, Metricom closed a secondary public offering 5 million
shares of its common stock at a price to the public of $87 per share. Many of
the material terms of the operant Worldcom agreement were not revealed to
investors prior to the Offering. Nor were corrective disclosures made as new
information relating to the agreements with Worldcom became known. Additionally, although the Company's business plan and marketing strategy were known to be flawed, certain defendants failed to disclose that material fact to the public. Additionally, certain defendants disseminated materially false and misleading statements which manipulated and artificially inflated Metricom's common stock price. These knowingly false and misleading statements drove Metricom stock from $11.06 per share near the beginning of the Class Period to as high as $109.50 per share on January 28, 2000 just prior to the Offering. After dissipating substantially all of Metricom's cash and making a series of shocking negative disclosures in the first half of the year, on July 2, 2001, Metricom and its affiliates filed voluntary petitions for bankruptcy relief. Only then did it become apparent that the Company's entire business model and marketing strategy had been flawed from the start. In the bankruptcy filings, it was disclosed that contingent claims approached almost $700 million with total debts exceeding $1 billion. Metricom's last pre-bankruptcy trade per share was for $1.82, a decline exceeding 93% over the prior 12 months.

NOTE: Metricom is not named as a defendant solely because it filed a voluntary petition for bankruptcy under Chapter 11 of the United States Code, 11 U.S.C. ''101 et seq. on July 2, 2001.

COMPANY INFORMATION:

Sector: Technology
Industry: Communications Equipment
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: MCOM
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-04085
JUDGE: Hon. Phyllis J. Hamilton
DATE FILED: 11/01/2001
CLASS PERIOD START: 06/21/1999
CLASS PERIOD END: 07/02/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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
  2. Lovell Stewart Halebian LLP (former New York)
    500 Fifth Avenue, Lovell Stewart Halebian LLP (former New York), NY 10110
    212.608.1900 212.719.4677 · info@lshllp.com
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 01-CV-04085
JUDGE: Hon. Phyllis J. Hamilton
DATE FILED: 07/29/2003
CLASS PERIOD START: 06/21/1999
CLASS PERIOD END: 07/02/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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
  2. Lovell & Stewart LLP (New York)
    500 Fifth Avenue, Lovell & Stewart LLP (New York), NY 10110
    212.608.1900 212.719.4677 · sklovell@aol.com
  3. Lovell Stewart Halebian LLP (former New York)
    500 Fifth Avenue, Lovell Stewart Halebian LLP (former New York), NY 10110
    212.608.1900 212.719.4677 · info@lshllp.com
  4. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  5. Stull, Stull & Brody (Los Angeles)
    10940 Wilshire Boulevard - Suite 2300, Stull, Stull & Brody (Los Angeles), CA 90024
    310.209.2468 ·
  6. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
No Document Title Filing Date
No Document Title Filing Date