Callidus Software, Inc. ("Callidus" or the Company) is a provider of enterprise incentive management ('EIM') software systems.

The original Complaint alleges that Callidus and certain of its officers and directors issued materially false statements. Specifically, Callidus failed to disclose: (i) Callidus was suffering at the time of the IPO due to competition from established enterprise software and ERP vendors, who could bundle their EIM offerings with other software products and therefore compete more aggressively on prices; (ii) Callidus was, prior to its IPO, experiencing a material adverse trend in license revenues; (iii) as a result of the adverse trend in 'license' revenue, Callidus' future 'service' revenue would be adversely impacted for future quarters; (iv) Callidus used as a barometer for its sales forecasts its 18 quota-carrying sales representatives who were severely behind on hitting their unrealistic quotas; and (v) prior to the IPO, Callidus had planned on bringing its Cezanne software team 'in-house,' which would dramatically impact the Company's earnings per share in future quarters.

On June 24, 2004, before the market opened, Callidus issued a press release announcing that its "chairman and CEO resigned, and it warned that second-quarter and full-year results would not meet . . . financial targets." On this news, shares of Callidus fell to $5.01 per share, well below the Class Period high and even the IPO price.

By the Order dated May 23, 2005, the motion to dismiss was granted with leave to amend. Plaintiff was allowed until June 24, 2005 to file an amended Complaint. Pursuant to the Order dated July 5, 2005, the Plaintiff’s complaint was dismissed for failure to meet the pleading requirements of the PSLRA, and these consolidated actions were dismissed. That same day, the Court also entered Judgment dismissing the action.