The class action complaint was first filed against System Software and certain of its current and former officers. The action is brought as a class action on behalf of all persons who purchased System Software common stock from September 15, 1994 through January 7, 1997 (the Class). The complaint alleges that during this period, the defendants issued incorrect financial and business information about System Software, through material misstatements and omissions of material fact about System Software, its finances, performance, and future business prospects. In particular (but only as a summary), plaintiff alleges that System Software caused its revenues to be improperly reported. The plaintiff alleges that this caused the market price of System Software common stock to be artificially inflated, and caused him and other purchasers to pay too much for their stock. The Complaint brings claims under the federal securities laws Section 10(b), Rule 10b-5 and Section 20(a) and state common law (for negligent misrepresentations and fraud and deceit).
On March 10, 1997, the Honorable David H. Coar issued the Pretrial Order No. 1, consolidating several actions under the caption “In re: System Software Associates, Inc. Securities Litigation" and under master file no. 97 C 177. Further, the court appointed Milberg Weiss Bershad Hynes & Lerach LLP, Cohen, Milstein, Hausfeld & Toll P.L.L.C., Wolf Popper LLP as co-lead counsel and Much Shelist Freed Denenberg Ament Bell & Rubenstein, PC, and Miller Faucher Chertow Cafferty and Wexler as co-liaison counsel. The court also appointed Jaspal Singh. Ravinder Singh, Michael Connor Ira Rollover and Hung A. Pham as lead plaintiffs for the class. On April 28, 1997, the lead plaintiffs filed a Consolidated Amended Class Action Complaint. The defendants responded by filing a motion to dismiss the Consolidated Amended Class Action Complaint. On May 14, 1997, and a motion for summary judgment on October 14, 1997.
Before any ruling, the judge granted the plaintiffs leave to amend and on December 5, 1997, the lead plaintiffs filed a Second Consolidated Amended Class Action Complaint. On February 20, 1998, Judge Coar denied as moot the pending motion to dismiss the Consolidated Amended Class Action Complaint due to the filing of the Second Consolidated Amended Complaint. On July 2, 1999, the defendants filed their motion to dismiss the Second Consolidated Amended Class Action Complaint.
On March 8, 2000, the defendants' pending motion for summary judgment on res judicata grounds was denied in part and granted in part, and defendants' motion to dismiss for failure to state a claim was denied. On April 25, 2000, the plaintiffs filed a motion for class certification. On May 17, 2000, System Software Associates, Inc. filed a notice of bankruptcy. On September 5, 2000, the case was reassigned to the Honorable John W. Darrah.
On December 6, 2000, Judge Darrah granted the motion for class certification. The class was defined as all persons who purchased the common stock of System Software Associates, Inc., during the period of 8/22/94 through and including 11/20/94 and those who purchased common stock during the period of 11/21/94 through and including 1/7/97 who sold their stock prior to 1/7/97 and who suffered damages as a result.
On May 30, 2002, the parties filed Stipulation of Settlement and the plaintiff filed a motion for preliminary approval of proposed class action settlement. The settlement was in the amount of $625,000 in cash. The settlement was between the plaintiff and the remaining individual defendants. SSA was not a party for purposes of this Stipulation having filed for bankruptcy. On June 3, 2002, Judge Darrah preliminarily approved the settlement. On August 26, 2002, Judge Darrah gave final approval to the settlement and the action was dismissed with prejudice.