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Case Status:    SETTLED
On or around 06/23/2009 (Ongoing date of last review)

Filing Date: January 17, 2003

According to an article dated July 31, 2007, on July 5, 2007, the U.S. District Court for the Southern District of Ohio granted plaintiffs' motion to lift a bankruptcy stay as to nonsolvent individual corporate directors in a securities fraud class action. Shareholders of MCSi Inc. sued the company and two of its individual directors for securities fraud in a class action. … The district court granted the motion to lift the stay as to the individual defendants because there were no unusual circumstances warranting a stay.

On June 20, 2003, the defendant MCSi, Inc., filed a notice of filing of case in bankruptcy court. On July 25, 2003, the Court entered the Order staying all proceedings pursuant to the automatic stay in bankruptcy. On May 5, 2004, the plaintiffs filed a Corrected Amended Complaint. On December 2, 2004, the plaintiffs filed a motion to certify the class. The action is in mediation.

The original complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between July 24, 2001 to February 26, 2002. According to the complaint, throughout the Class Period, defendants issued numerous statements in quarterly and annual press releases regarding the supposed strength of its business, particularly the success of its high-margin systems integration business. According to
the complaint, these, and other representations detailed therein, were
materially false and misleading because they failed to disclose that
MCSi's business was deteriorating overall and that its integration
services business was not operating as successfully as defendants had
represented. The Complaint further alleges that the scheme was designed
to artificially inflate the price of MCSi's common stock in order to
allow MCSi insiders to profit by selling their shares of MCSi common
stock at artificially inflated prices in two follow-on public offerings.
On August 15, 2001, MCSi sold 4 million shares in a secondary offering
at $11.50 per share and on December 19, 2001, the Company and certain
selling shareholders, including defendant Peppel who sold 200,000 shares
for gross proceeds of $4,575,000, undertook another public offering,
selling a total of 5.2 million shares of MCSi common stock at $22.875
per share. Then, on February 26, 2002, the Company shocked the market by
reporting a 29% decline in sales for the fourth quarter of 2001, and a
loss of $0.24 per share (including a restructuring charge). In reaction
to this announcement, the price of MCSi common stock plunged by 40%,
falling from a $17.35 per share close on February 25 to a close of
$10.40 per share on February 26, on extremely heavy trading volume.

NOTE: On June 3, 2003, MCSi, Inc. filed for Chapter 11 bankruptcy protection.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Peripherals
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: MCSI
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: S.D. Ohio
DOCKET #: 03-CV-00015
JUDGE: Hon. Walter H. Rice
DATE FILED: 01/17/2003
CLASS PERIOD START: 07/24/2001
CLASS PERIOD END: 02/26/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  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. Faruqi & Faruqi LLP (New York) (former)
    320 East 39th Street, Faruqi & Faruqi LLP (New York) (former), NY 10016
    212.983.9330 212.983.9331 · Nfaruqi@faruqilaw.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. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  8. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
  9. 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
COURT: S.D. Ohio
DOCKET #: 03-CV-00015
JUDGE: Hon. Walter H. Rice
DATE FILED: 05/05/2004
CLASS PERIOD START: 07/24/2001
CLASS PERIOD END: 02/26/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  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 (Boca Raton)
    2255 Glades Road, #421A, Cauley & Geller (Boca Raton), FL 33431
    561.750.3000 ·
  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. Faruqi & Faruqi LLP (New York) (former)
    320 East 39th Street, Faruqi & Faruqi LLP (New York) (former), NY 10016
    212.983.9330 212.983.9331 · Nfaruqi@faruqilaw.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. Law Offices of Marc S. Henzel (Bala Cynwyd)
    273 Montgomery Ave. Suite 202, Law Offices of Marc S. Henzel (Bala Cynwyd), PA 19004
    610.660.8000 610.660.8080 · securitiesfraud@comcast.net
  8. Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY)
    One Pennsylvania Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY), NY 10119-1065
    212.594.5300 ·
  9. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  10. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
  11. Strauss & Troy
    The Federal Reserve Building, 150 East Fourth Street, Strauss & Troy, OH 45202-4018
    513.621.2120 513.241.8250 · wlwoods@strauss-troy.com
  12. 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