Plaintiffs filed a Second Consolidated complaint against defendants addressing pleading deficiencies of the first complaint on April 29, 2005. Proceedings of the case were disrupted when the presiding judge passed away in March 2007. After reassignment of the case, the new judge heard arguments from both parties before summarily dismissing the action with prejudice on July 6, 2007.
According to the Company’s Form 20-F/A for the fiscal year ended December 31, 2005, the Company filed a motion to dismiss this action on January 31, 2003, and a decision on the motion was rendered on March 4, 2005. The judge rejected a certain number of the plaintiffs’ demands with prejudice. He also rejected all the remaining claims under the federal securities laws for lack of specificity in the pleadings, but with leave to file a further amended complaint. This was filed, and fully briefed as of August 5, 2005. The parties are now waiting for the judge’s decision.
Several purported class action lawsuits were filed in the United States District Court for the Southern District of New York since May 2002 against Alcatel and certain of its officers and directors, asserting various claims under the federal securities laws. These actions have been consolidated. The consolidated action challenges the accuracy of certain public disclosures that were made in the prospectus for the initial public offering for Class O shares and other public statements regarding Alcatel, and in particular, the Company’s former Optronics division. The complaint purports to bring claims on behalf of the lead plaintiffs and a class of persons consisting of persons who (i) acquired Class O shares in or traceable to the initial public offering of ADSs conducted by the Company in October 2000, (ii) purchased Class A or Class O shares in the form of ADSs between October 20, 2000 and May 29, 2001, and (iii) purchased Class A shares in the form of ADSs between May 1, 2000 and May 29, 2001.
The original action charges that defendants violated federal securities laws by issuing materially inaccurate and misleading statements and/or by failing to disclose material information to the market in the October 20, 2000 prospectus for the sale of Alcatel Class O stock in the form of American Depositary Shares (ADSs).