On August 17, 2005, the Court entered the Order signed by U.S. District Judge Nathaniel M. Gorton granting the defendant’s motion to dismiss. On September 12, 2005, the defendant filed a Stipulation of Dismissal and the action was dismissed with prejudice.
On May 18, 2004, the Court entered the Memorandum of Decision and Order signed by U.S. District Judge Judith G. Dein granting the motion of Robert Coopersmith for Appointment as Lead Plaintiff and for Approval of his Selection of Lead Counsel. On December 17, 2004, a Consolidated Amended Class Action Complaint was filed, and on February 24, 2005, the defendant filed a motion to dismiss.
The complaint alleges that the defendants violated section 10(b) of the Securities Exchange Act of 1934 ("the Exchange Act"), and Rule 10b-5 promulgated thereunder, and Section 20(a) of the Exchange Act by issuing positive analyst reports recommending that investors purchase Razorfish stock. When issuing those reports, defendant failed to disclose significant, material conflicts of interest with respect to links between such positive recommendations and Lehman's obtaining and retaining investment banking business from Razorfish.