According to the latest docket posted, on November 16, 2004, the Court entered the Order by U.S. District Judge David O. Carter granting the motion to dismiss the second amended complaint with leave to amend the consolidated complaint within 60 days of this order. The plaintiffs did not amend their complaint. On January 18, 2005, the Court entered the Stipulation and Order dismissing the complaint in its entirety with prejudice, and the case was terminated. According to the Order, no party shall seek reimbursement from any other party of any fees, costs, expenses or damages.
As previously reported by the Company’s FORM 10-Q for the quarterly period ended September 30, 2004, orders designating a lead plaintiff and consolidating the federal class action complaints were issued by the U. S. District Court in late October 2003, and an amended consolidated class action complaint was filed in January 2004. On May 10, 2004, the U.S. District Court granted the Company’s motion to dismiss the amended consolidated class action complaint without prejudice. A second amended class action complaint was filed in U.S. District Court in early July 2004. The Company’s motion to dismiss the second amended class action complaint was filed in August 2004, and is scheduled to be heard by the U.S. District Court in November 2004.
The original complaint charges Quest and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Quest provides application and information availability software solutions that
enhance the performance and reliability of e-business, enterprise and
custom applications and enable the delivery of information across the
enterprise. The complaint alleges that during the Class Period,
defendants caused Quest's shares to trade at artificially inflated
levels through the issuance of false and misleading financial
statements. On July 23, 2003, Quest revealed that its 2002 and Q1 03
results were false when issued due to a "computational error" in
revenue recognition. The stock dropped below $9 per share on this