According to the Company’s FORM 10-K for the fiscal year ended December 31, 2003, a consolidated complaint was filed in April 2002, and on September 11, 2002, the court dismissed the complaint with leave to amend. Thereafter, on October 16, 2002, the plaintiffs filed a notice of their intent to stand on the complaint, without further amendment. On July 18, 2003, upon the defendants’ unopposed motion, the Court issued a judgment on the merits against plaintiffs, and in favor of the Company and the officer and director defendants.

The original complaint charges Sagent and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Sagent is a provider of Real-time eBusiness Intelligence Solutions which purport to enable enterprises to win new customers and improve operational effectiveness. The Company develops, markets, and supports products and services that are designed to help businesses collect, analyze, understand, and act on customer and operational information in real-time. Sagent was founded in 1995 to develop and sell its DMS suite software. The complaint alleges that during the Class Period, defendants caused Sagent's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. As a result of this inflation, Sagent was able to complete a private placement offering of 9.1 million shares, raising net proceeds of$16.8 million on August 1, 2001. On November 15, 2001, just months after this offering was completed, Sagent revealed that its Q3 results, and possibly other quarters, were false when issued. The stock dropped below $.70 per share on this news. Then, on November 28, 2001, after the market closed, defendants revealed that Sagent's Q1-Q3 results had been materially misstated and would have to be restated.