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Case Status:    SETTLED
On or around 03/20/2007 (Ongoing date of last review)

Filing Date: May 27, 2003

On August 30, 2006, the Order entered the Order by U.S. District Judge Patti B. Saris preliminarily approving the settlement and providing for notice.

On March 8, 2005, the plaintiffs filed a Second Consolidated Class Action for Violations of the Federal Securities Law, and the defendant responded by filing a motion to dismiss on April 7, 2005. On March 16, 2006, the Court entered the Order denying the defendant’s motion to dismiss without prejudice on the grounds that the case is likely to settle. On May 23, 2006, a motion for Preliminary Approval of Proposed Settlement was filed.

In October 2004, the action was transferred from the U.S. District Court for the Northern District of Illinois to the District of Massachusetts.

The original Complaint alleges that defendants Chief Executive Officer and Chairman of the Board of Directors, and Chief Financial Officer and Executive Vice President 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 between November 12, 2001, and February 18, 2003, thereby artificially inflating the price of Divine securities. Throughout the Class Period, as alleged in the Complaint, defendants failed to disclose and misrepresented the following material adverse facts: (i) Divine was engaged in a scheme of inflating its revenues by approximately $65 million by instructing employees of its wholly-owned subsidiary, RoweCom, to offer discounts to library customers that paid cash in advance - months before payments were due to publishers - even though Divine had no plan to pay its obligations to publishers, (ii) Divine was fraudulently diverting nearly $74 million from RoweCom's operations, (iii) Divine lacked adequate financial and internal controls with respect to its RoweCom operations, and (iv) as a result of the foregoing, Divine lacked a reasonable basis to project profitability by year-end or an ability to maintain its operations without bankruptcy protections. The Class Period ends on February 18, 2003. On that date, Divine announced that "despite efforts over the past several months to minimize
operating expenses and various liabilities, its board of directors has determined that it must seek alternatives to protect the value and viability of its operations. As a result, Divine has engaged Broadview International LLC as advisors to assist in exploring strategic options, which may include asset divestitures, comparable transactions, and/or the filing of a voluntary petition under Chapter 11 of the United States Bankruptcy Code." In response to this announcement, the price of Divine
stock declined precipitously. During the Class Period, Divine completed two acquisitions, among numerous others - acquiring Viant Corporation and Delano Technology Corporation - using its common stock as currency.

COMPANY INFORMATION:

Sector: Services
Industry: Business Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: DVINQ
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: D. Massachusetts
DOCKET #: 03-CV-3599
JUDGE: Hon. Samuel Der-Yeghiayan
DATE FILED: 05/27/2003
CLASS PERIOD START: 11/12/2001
CLASS PERIOD END: 02/14/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berger & Montague PC
    1622 Locust Street, Berger & Montague PC, PA 19103
    800.424.6690 215.875.4604 · investorprotect@bm.net
  2. 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 ·
  3. Kirby McInerney & Squire LLP
    830 Third Avenue 10th Floor, Kirby McInerney & Squire LLP, NY 10022
    212.317.2300 ·
  4. 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
  5. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  6. Murray, Frank & Sailer LLP (Milwaukee)
    3181 South 27th Street, Murray, Frank & Sailer LLP (Milwaukee), WI 53215
    866.264.3995 414.482.8001 · info@murrayfrank.com
  7. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  8. 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
  9. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
  10. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
No Document Title Filing Date
COURT: D. Massachusetts
DOCKET #: 04-CV-12263
JUDGE: Hon. Samuel Der-Yeghiayan
DATE FILED: 03/08/2005
CLASS PERIOD START: 09/17/2001
CLASS PERIOD END: 02/14/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Gilman & Pastor LLP (Saugus)
    Stonehill Corporate Center 999 Broadway Suite 500, Gilman & Pastor LLP (Saugus), MA 01906
    781.231.7850 781.231.7840 ·
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    200 Broadhollow, Suite 406, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@lerachlaw.com
  3. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  4. Robbins Umeda & Fink, LLP (San Diego)
    1010 Second Ave. - Suite 2360, Robbins Umeda & Fink, LLP (San Diego), CA 92101
    1800.350.6003 · aguirre@ruflaw.com
  5. 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