According to the latest docket posted, on March 11, 2003, the case was consolidated with lead case 02-CV-3288. On January 12, 2004, the Court entered the Opinion and Order # 89535, signed by U.S. District Judge Denise L. Cote, that the motion brought by UBS to dismiss the claims against it in the GOALs Litigation is granted.
The Complaint alleges 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 material misrepresentations to the market during the Class Period. Defendants were all officers and/or directors of Worldcom, Inc.
("Worldcom") during the Class Period. The Complaint alleges that defendants issued a series of materially false and misleading statements regarding Worldcom. Specifically, the Complaint alleges that throughout the Class Period Worldcom's revenue, earnings, income and assets were materially overstated and its financial statements issued during the Class Period violated Generally Accepted Auditing Principles ("GAAP"). As a result of defendants' violations of the federal securities laws Worldcom has declared bankruptcy and its shares are virtually worthless. The Complaint alleges that the purchase price of the GOALs(+) was materially inflated because their value was directly tied to the market value of Worldcom common stock, which was materially inflated as a result of the fraud.