On August 5, 2004, the Court entered the Order by U.S. District Judge Vaughn R. Walker dismissing the case in accordance with the Plaintiff’s Notice of Voluntary Dismissal originally filed on July 28, 2004. The case is closed.
The complaint alleges that E.piphany and certain of its officers and directors violated the Securities Exchange Act of 1934 by concealing information and misleading shareholders during the Class Period. More specifically, the complaint alleges that defendants concealed from the investing public industry research reports that were republished by E.piphany's with false statements regarding its technology. E.piphany cited these misleading reports in press releases, on their Web site, and in other public statements. By deliberately misleading industry analysts, then bolstering its marketing efforts by relying on their reports, E.piphany's conduct further perpetuates the "all Java" and "fully J2EE" myths, further inducing customers to buy their products through the deceptive means described herein. This, in turn, allowed E.piphany to generate fraudulent revenue. The complaint also alleges that E.piphany made literally false, misleading, and deceptive representations, both oral and written, regarding its products to investors and potential investors, industry analysts, and customers to increase sales and stock prices. E.piphany's false, deceptive, and misleading representations are material in that they have a natural tendency to influence, or are capable of influencing, purchasing decisions, and they relate to the essential characteristics, quality, and/or nature of competing products and commercial activities, including value, compatibility, interoperability, and quality. As a result of the defendants' false statements, E.piphany's stock price traded at inflated levels during the Class Period, increasing to as high as $9.13 on February 2, 2002, whereby the Company's top officers and directors sold more than $1.4 million worth of their own shares.
Note: E.piphany develops and markets software. The Company's products are used by companies to establish, maintain, and continually improve customer relationships across both Internet and traditional sales, marketing, and distribution channels. E.piphany's integrated sets of software solutions provide capabilities for analysis of customer data and marketing campaign management.