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Case Status:    DISMISSED    
On or around 08/16/2012 (Court's order of dismissal)

Filing Date: June 29, 2011


According to a press release dated June 29, 2011, the defendant company and certain of its officers and directors violated sections of the Securities Exchange Act of 1934.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business prospects and financial results. As a result of defendants’ false statements, the company’s stock traded at artificially inflated prices during the Class Period, reaching a high of $16.87 per share on January 5, 2011.

On February 8, 2011, the defendant issued a press release announcing suspension of its 2011 full-year revenue guidance. The Company further reported it expected revenue to be in the range of $15 to $20 million for the first quarter of 2011 due to an expected significant reduction in orders for its core Connection Manager product from its key customer. On this news, the defendant’s stock dropped $4.56 per share to close at $8.50 per share on February 9, 2011. Then, on May 4, 2011, the company issued a press release announcing its first quarter 2011 financial results, reporting a net loss of ($7.8 million), or ($0.22) diluted earnings per share. On this news, Smith the stock declined another $1.60 per share to close at $5.66 per share on May 5, 2011, a one-day decline of 22% on high volume.

Based on these allegations, the Complaint charges violations of Section 10(b) of the 1934 Act and Rule 10b-5 and Section 20(a) of the 1934 Act against all defendants.

On October 17, 2011, the Court issued an Order appointing lead plaintiffs and approving the selection of lead counsel. On December 15, the lead plaintiffs filed their consolidated amended complaint.

On May 21, 2012, the Court issued an Order granting Defendants' motion to dismiss. Plaintiffs were given leave to file an amended pleading.

On July 19, 2012, the parties filed a Stipulation. Plaintiffs agreed to dismiss Defendants with prejudice from this action. On August 16, the Court issued the Order dismissing this action pursuant to the Stipulation.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: SMSI
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: C.D. California
DOCKET #: 11-CV-00976
JUDGE: Hon. Andrew J. Guilford
DATE FILED: 06/29/2011
CLASS PERIOD START: 11/03/2010
CLASS PERIOD END: 05/04/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Chapin Fitzgerald Sullivan & Bottini LLP
    550 West C Street, Suite 2000, Chapin Fitzgerald Sullivan & Bottini LLP, CA 92101
    619-241-4810 ·
  2. Robbins Geller Rudman & Dowd LLP (San Diego)
    655 West Broadway, Suite 1900, Robbins Geller Rudman & Dowd LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
No Document Title Filing Date
COURT: C.D. California
DOCKET #: 11-CV-00976
JUDGE: Hon. Andrew J. Guilford
DATE FILED: 12/15/2011
CLASS PERIOD START: 11/03/2010
CLASS PERIOD END: 05/04/2011
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Chapin Fitzgerald Sullivan & Bottini LLP
    550 West C Street, Suite 2000, Chapin Fitzgerald Sullivan & Bottini LLP, CA 92101
    619-241-4810 ·
  2. Robbins Geller Rudman & Dowd LLP (San Diego)
    655 West Broadway, Suite 1900, Robbins Geller Rudman & Dowd LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  3. VanOverbeke Michaud & Timmony, P.C.
    79 Alfred Street, VanOverbeke Michaud & Timmony, P.C., MI 48201
    313.578.1200 313.578.1200 ·
No Document Title Filing Date