According to the latest docket posted, on June 1, 2005, the defendants filed a Renewed Motion for Summary Judgment and for Judgment on the Pleadings. On September 16, 2005, the Court entered the Memorandum and Order signed by the Honorable Anna Diggs Taylor granting the defendants’ motion to dismiss and granting summary judgment. The Court entered Judgment in favor of the defendants.
As previously reported by the Company’s FORM 10-K for the fiscal year ended March 31, 2005, on May 1, 2003, the cases were consolidated. The matter is now titled In re Compuware Securities Litigation. The suit was brought on behalf of purchasers of the Company's common stock from January 1, 1999 to April 3, 2002. The defendants are the Company and Peter Karmanos, Jr. The plaintiff alleges that the Company failed to disclose under the securities laws its problems with the misappropriation of its software source code by IBM. The plaintiff further alleges that the Company omitted and/or disseminated materially false and misleading statements concerning its deteriorating relationship with IBM. The plaintiff requests that the court award them monetary damages and expenses of litigation, including reasonable attorneys fees. The Company strongly disagrees with the allegations and is vigorously defending against the lawsuit. On August 27, 2004, plaintiffs moved to certify a class. In January 2005, the Court ruled in the Company's favor by denying plaintiff's motion for class certification. The Company believes that the risk of loss resulting from these claims by the plaintiff is remote. The lawsuit is currently in the discovery phase.
Two class-action lawsuits were filed against the company alleging that it failed to disclose certain information, according to Compuware's quarterly report filed with the Securities and Exchange Commission. The suits were filed on Sept. 20 and Oct. 10 on behalf of purchasers of the company's common stock from Jan. 1, 1999, to April 3, 2002. The plaintiffs in both cases allege that the company failed to disclose under the securities laws its problems with the misappropriation of its software source code by International Business Machines Corp. (IBM). The plaintiffs further allege that the company made material omissions and the dissemination of materially false and misleading statements about its "deteriorating relationship with IBM," according to the filing. The plaintiffs are seeking money damages and expenses of litigation, including reasonable attorney fees.