According to a press release dated, January 9, 2004, Lockheed Martin Corporation announced that the United States District Court for the Central District of California in Los Angeles has dismissed a private class action securities lawsuit filed against the Corporation and certain of its officers and directors. The lawsuit was dismissed when plaintiffs' counsel, with the approval of the lead plaintiff and the two class representatives, determined not to pursue the lawsuit. Plaintiffs' counsel made this determination after reviewing documents produced by Lockheed Martin and securities analysts who followed Lockheed Martin, as well as publicly available information bearing on the facts and circumstances of the case, and after consulting with experts to assist in an analysis of issues bearing on the elements of the case. The dismissal is without prejudice as to the named plaintiff, lead plaintiff, class representatives, and the class members.
The original complaint alleges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 in that they or persons they controlled allegedly committed fraud upon class members in connection with their purchases of the Corporation's common stock. The complaint further alleges that the statutory safe harbor provided for forward-looking statements does not apply to the allegedly false forward-looking statements. According to the complaint, class members were damaged as, in reliance on the integrity of the market, they paid artificially inflated prices for the Corporation's stock.