BEA Systems, Inc. ("BEA" or the Company) provides enterprise infrastructure software products.

The original Complaint charges BEA and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Complaint alleges that during the Class Period, Defendants issued materially false and misleading statements to the investing public regarding BEA's business and prospects. As a result of these false statements, BEA's stock price traded at inflated levels during the Class Period, increasing to as high as $14 in early 2004, whereby the Company's top officers and directors sold more than $13 million worth of their own shares. Then on May 13, 2004, BEA reported disappointing first quarter results, citing the difficult selling environment and sales execution issues as the primary reasons. On this news, the Company's shares fell 30% to $8 per share.

According to the Complaint, the true facts, which were known to the Defendants but actively concealed from the public, were as follows: (i) that the Company was experiencing material sales execution problems in its licensing division, resulting in license reserve being down in the comparable quarter and in the sequential quarter; (ii) that during the preceding quarter, the Company's sales staff and management were attempting to reorganize; however, in doing so, the Company's sales were actually disrupted; (iii) that the Company's WebLogic 8.1 Platform was far from "revolutionary" and was not selling as Defendants claimed; (iv) that the coverage of small and medium-sized businesses was transferred to the General Accounts Team, which disrupted the Company's North American reserves; and (v) that the Company was experiencing weakness in its telecom vertical business, not strength.

By the Order of Dismissal and Final Judgment entered on March 11, 2005, U.S. District Judge Susan Illston dismissed the case with prejudice in its entirety. The Motion to Dismiss the Consolidated Amended Class Action Complaint was earlier filed by the Defendants on November 19, 2004. Judge Susan Illston granted the motion of the Defendants on February 15, 2005.