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Case Status:    SETTLED
On or around 03/06/2006 (Date of order of final judgment)

Filing Date: November 09, 2004

According the docket posted, on March 6, 2006, the Court entered the Order and Final Judgment signed by U.S. District Judge Joseph L. Tauro. The settlement was approved and the civil case was terminated.

As reported by the Company’s Form 10-Q For The Quarter Ended December 31, 2005, following mediation, on November 16, 2005, the Company and the plaintiffs on behalf of putative class members entered into a Stipulation and Agreement of Compromise, Settlement and Release of Securities Action which was filed with the court on the same date. On December 12, 2005, the court granted preliminary approval of the settlement provided for in the stipulation and set a hearing date of March 6, 2006 to consider final approval of the settlement. Pursuant to the terms of the settlement, a total of $5.6 million has been paid into a settlement fund by the Company and its insurance carrier. The settlement remains subject to the satisfaction of various conditions, including final approval by the court. As part of the settlement, the plaintiffs have agreed to dismiss the class action lawsuit with prejudice effective upon entry of final judgment after court approval.

According to the same SEC filing, in November 2004, two putative class action lawsuits were filed against the Company in the United States District Court District of Massachusetts, captioned, respectively, Fener v. Aspen Technology, Inc., et. al., Civil Action No. 04-12375 (D. Mass.) (filed Nov. 9, 2004) and Stockmaster v. Aspen Technology, Inc., et. al., Civil Action No. 04-12387 (D. Mass.) (filed Nov. 10, 2004). The class actions allege, among other things, that the Company violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder in connection with various statements about our financial condition for fiscal years 2000 through 2004. On February 2, 2005, the court consolidated the cases under the caption Aspen Technology, Inc. Securities Litigation, Civil Action No. 04-12375 (D. Mass.), and appointed The Operating Engineers and Construction Industry and Miscellaneous Pension Fund (Local 66) and City of Roseville Employees’ Retirement System as lead plaintiff, purporting to represent a putative class of persons who purchased the Company’s common stock between January 25, 2000 and October 29, 2004. On August 26, 2005, the plaintiffs filed a consolidated amended complaint containing allegations materially similar to the prior complaints and expanding the class action period.

The original complaint charges Aspen 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 inappropriately recognized revenues from certain software license and service agreements entered into with certain alliance partners and other customers during fiscal years 2000-2002; (2) that the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP"); (3) that the Company lacked adequate internal controls; and (4) that as a result of the above, the Company's financial results were materially inflated at all relevant times.

The complaint further alleges that on October 27, 2004, Aspen announced that its Audit Committee had undertaken a detailed review of the accounting for certain software license and service agreement transactions entered into with certain alliance partners and other customers during fiscal years 2000-2002. This news shocked the market. Shares of Aspen fell $.20 per share, or 2.91 percent, on October 28, 2004, to close at $6.68 per share. On October 29, 2004, Aspen said federal prosecutors had launched a probe into the software company's accounting practices from 2000 through 2002. On this news, Aspen's shares tumbled a further $.67 per share, or 10.03 percent, on October 29, 2004, to close at $6.01 per share.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: AZPNE
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: D. Massachusetts
DOCKET #: 04-CV-12375
JUDGE: Hon. Reginald C. Lindsay
DATE FILED: 11/09/2004
CLASS PERIOD START: 08/08/2000
CLASS PERIOD END: 10/29/2004
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  2. Dyer & Shuman, LLP
    801 East 17th Avenue, Dyer & Shuman, LLP, CO 80218-1417
    303.861.3003 800.711.6483 · info@dyershuman.com
  3. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  4. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    200 Broadhollow, Suite 406, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@lerachlaw.com
  5. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  6. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  7. Shapiro Haber & Urmy LLP (Boston)
    75 State Street, Shapiro Haber & Urmy LLP (Boston), MA 02109
    617.439.3939 617.439.0134 · info@shulaw.com
No Document Title Filing Date
COURT: D. Massachusetts
DOCKET #: 04-CV-12375
JUDGE: Hon. Reginald C. Lindsay
DATE FILED: 08/26/2005
CLASS PERIOD START: 12/07/1999
CLASS PERIOD END: 03/15/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    200 Broadhollow, Suite 406, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@lerachlaw.com
  2. Shapiro Haber & Urmy LLP (Boston)
    75 State Street, Shapiro Haber & Urmy LLP (Boston), MA 02109
    617.439.3939 617.439.0134 · info@shulaw.com
No Document Title Filing Date
No Document Title Filing Date