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Case Status:    SETTLED
On or around 08/11/2004 (Date of order of final judgment)

Filing Date: March 03, 2003

According to a press release dated August 10, 2004, InterCept, Inc. announced that it has received final court approval on the previously announced settlement of the consolidated securities class action litigation filed against the company and several of its current and former officers. Under the terms of the settlement, the claims against InterCept and the individual defendants were dismissed without any admission of liability or wrongdoing. The shareholder class will receive a payment of $5.3 million, from which plaintiff's counsel will be awarded attorney's fees. As previously announced, InterCept recorded a charge in the fourth quarter of 2003 to reflect its portion of the settlement and attorney's fees.

The original complaint alleges that, during the Class Period, defendants made material misrepresentations and/or omitted to make material disclosures due to their false assurances that the adult pornography internet portion of their merchant processing business was insignificant and due to their failure to disclose that VISA regulations implemented on November 1, 2002, which were targeted specifically to address risks of internet pornography card processing, had caused a material loss of business. Specifically, Plaintiff alleges that defendants knew by the time their fourth quarter earnings estimate was issued on November 4, 2002 that they would suffer a material loss of business because defendants were aware by November 1, 2002 which of their customers had met the deadline to become sponsored merchants under the new VISA regulations. In a January 9, 2003 press release, Intercept announced that it was revising its fourth quarter 2002 earnings per share estimate downward to $0.92 to $0.98 from its earlier, November 4, 2002, estimate of $1.11 to $1.15. The Company cited "reduced revenues in our merchant area result(ing) primarily from the iBill operations, which experienced a large loss of merchant customers following the implementation of a new credit card association rule in mid-November." Following these disclosures, shares of Intercept declined from the Class Period high of $19.11 per share to close near $7.00 per share on January 10, 2003 on unusually high volume. By the close of trading on January 10, 2003, the stock had lost more than half of its value just prior to the disclosure.


Sector: Financial
Industry: Consumer Financial Services
Headquarters: United States


Ticker Symbol: ICPT
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data

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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: N.D. Georgia
DOCKET #: 03-CV-00567
JUDGE: Hon. Robert L. Vining Jr.
DATE FILED: 03/03/2003
CLASS PERIOD END: 01/09/2003
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 ·
  2. Brian Felgoise
    230 South Broad Street, Suite 404 , Brian Felgoise, PA 19102
    215.735.6810 215/735.5185. ·
  3. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  4. Chitwood & Harley LLP
    1230 Peachtree Street, N.E., 2300 Promenade II, Chitwood & Harley LLP, GA 30309
    888.873.3999 404.873.4476 ·
  5. Hoffman & Edelson
    45 West Court Street, Hoffman & Edelson, PA 18901-4223
    215.230.8043 ·
  6. Holzer & Holzer, LLC
    1117 Perimeter Center West, Suite E-107, Holzer & Holzer, LLC, GA 30338
    770.392.0090 770.392-0029 ·
  7. Landskroner - Grieco, Ltd.
    1360 West 9th St., Suite 200, Landskroner - Grieco, Ltd. , OH 44113-1904
    866.522.9500 ·
  8. 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 ·
  9. 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 ·
  10. Vianale & Vianale LLP (former Boca Raton)
    The Plaza - Suite 801, 5355 Town Center Road., Vianale & Vianale LLP (former Boca Raton), FL 33486
    561.391.4900 561.368.9274 ·
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