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Case Status:    DISMISSED    
On or around 02/03/2005 (Date of order of final judgment)

Filing Date: November 04, 2004

According to the Company’s Form 10-K For the Fiscal Year Ended December 31, 2004, in November 2004, two putative class action lawsuits were filed against the Company and certain of its officers. Each of these lawsuits has been voluntarily dismissed without prejudice. The dismissal of the first lawsuit was filed and approved by the court on February 2, 2005, and the dismissal of the second lawsuit was filed and approved by the court on February 7, 2005.

The complaint charges Embarcadero Technologies and certain of its officers with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company had materially overstated its net income and earnings per share; (2) that defendants prematurely recognized revenue in its UK subsidiary, Embarcadero Europe Ltd.; (3) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (5) that as a result, the value of the Company's net income and financial results were materially overstated at all relevant times.

The complaint further alleges that on October 27, 2004 Embarcadero Technologies, after the market closed, announced that it was delaying the release of its financial results for the third quarter ended September 30, 2004. The Company also announced that its Audit Committee this week commenced an investigation of the revenue recognition practices of its UK subsidiary, Embarcadero Europe Ltd. (Embarcadero Europe), as a result of recent discoveries relating to Embarcadero Europe's resellers. News of this shocked the market. Shares of Embarcadero Technologies fell $2.29 per share, or 23.20 percent, by noon on October 28, 2004.


Sector: Technology
Industry: Software & Programming
Headquarters: United States


Ticker Symbol: EMBTE
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: N.D. California
DOCKET #: 04-CV-04680
JUDGE: Hon. Martin J. Jenkins
DATE FILED: 11/04/2004
CLASS PERIOD END: 10/27/2004
  1. Green Welling LLP (San Francisco)
  2. Law Offices of Charles J. Piven, P.A.
  3. Schatz & Nobel, P.C.
  4. Schiffrin & Barroway LLP
No Document Title Filing Date
—Reference Complaint Complaint Related Data is not available
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