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IN RE COMPUTERVISION CORP SECURITIES LITIGATION Click to find out why . . .



Keywords & Phrases
CaseNo: CC110971, CourtName: CLASS ACTION CASES, State: MA Massachusetts, UniqueCaseRef: LCD>CC110971, Prospectuses, Offerings, Computervision, Stock Prospectus, Cadds, Securities, Customers, Underwriter, Revenues, Plan, Misleading, Sales, Common, Securities Act, Commercial Shipment, Offering Price, Misrepresentation, Representations, Materially False, Ipo Plan, Shearson Holdings, Recommendations, Plaintiff Subclass, Public Offering, Visibility, Computer-vision, Internal Plans , ContentID: 120249591

Case Documents
1 1995-05-01 Government Exhibit # 2ND AMENDED CONSOLIDATED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 122223
55 pages
PDF
Total Documents: 1 document , 55 pages
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1 . Government Exhibit # 2ND AMENDED CONSOLIDATED COMPLAINT

EXTRACTED KEY WORDS
OFFERINGS
COMPUTERVISION
STOCK PROSPECTUS
CADDS
SECURITIES
CUSTOMERS
DEFENDANTS
UNDERWRITER
REVENUES
PLAINTIFF
PLAN
MISLEADING
SALES
COMMON
MEMBERS
SECURITIES ACT
COMMERCIAL SHIPMENT
OFFERING PRICE
MISREPRESENTATION
REPRESENTATIONS
MATERIALLY FALSE
IPO PLAN
SHEARSON HOLDINGS
RECOMMENDATIONS
PLAINTIFF SUBCLASS
PUBLIC OFFERING
VISIBILITY
COMPUTER-VISION
INTERNAL PLANS
                                                                                    UNITED  STATES 
                                                                     FOR  THE  DISTRICT  OF


                                                                                                   
      IN  RE  COMPUTERVISION                                                             SECURITIES
      LITIGATION                                                                                   
      --m--w e-m---m-
                                           -m--w-
                                                          
                                                                                                   
      THIS  DOCUMENT  IIISLATES  TO  ALL  ACTIONS                                                  

      ------------------------------------------------------------------------x


                                                                               SECOND  AMENDED 
                                                                                      CLASS  ACTION

                              Plaintiffs,  by their attorneys, allege upon personal knowledge  as
      and upon information  and belief based upon an investigation  by their attorneys as to all
      other matters as follows:
                                                                                         -3

                              1.                      This is a consolidated class action on behalf

      purchased Computer-vision Corporation ("Computervision"  or the "Company")  notes and

      common  stock (the `T\Totes" and "Stock")  between August  14, 1992, when those

      securities were first  offered (the "Offerings"),  and September 29, 1992, when

      Computervision  announced substantial losses for the third  quarter of  1992 (the "Third

      Quarter"), which  were later quantified  at approximately  $88 million.

                             2.                       This Amended  Complaint  alleges violations 

      of the Securities Act  of  1933 (the "Securities  Act")  and negligent misrepresentation based

      on the prospectuses relating to the Offerings  (the "Stock  Prospectus" and "`Notes

      Prospectus," collectively  the "Prospectuses"), which  contained false and misleading
I     statements and omissions.



         3.       The  Prospectuses  were  identical  in  all  material  respects,  except  for  the

SNIPPETS:
  • Computervision announced substantial losses for the third quarter of 1992 (the "Third
  • of the Securities Act of 1933 and negligent misrepresentation based
  • Prospectus," collectively the "Prospectuses"), which contained false and misleading I
  • The Prospectuses were identical in all material respects,
  • As set forth in detail below, the Prospectuses were materially false
  • The Stock Prospectus was misleading in stating that the Stock had been appropriately priced.
  • The Stock Prospectus stated that among the factors considered in determining the initial
  • By the time of the Offerings, however, those estimates were no longer valid.
  • As of the date of the Offerings, the Company's revenues, bookings,1 visibility2 and backlog
  • the amount of opening backlog in a quarter represented a material part of the quarter's sales.
  • The Prospectuses falsely stated that "commercial shipments" of CADDS 5, Release 2.0 had begun
  • The Prospectuses mischaracterized CADDS 5 as an "upgrade" or "follow on version" of CADDS 4X
  • Defendants failed to disclose facts known at the time of the
  • $6 77k, 771, and 770, and the common law.
  • The individual Defendants, at all relevant times herein, were the principal executive
  • Underwriter Class," collectively, the "Undenvriters").
  • Plaintiffs bring this action pursuant to Rule 23 of the Federal Rules of Civil Procedure on
  • and the members of the Defendant Underwriter Class.
  • subclass of the Plaintiff Class (the "Plaintiff Subclass") consisting of all persons who
  • Shearson Holdings and its affiliate Shearson Lehman Brothers Capital Partners II,
  • written recommendations were based on factors
  • IPO plan which the Company had presented to the Underwriters in conjunction with their
  • representations in the Prospectuses concerning the recommendations of the qualified
  • summarized revenues, backlog, bookings and visibility on a week-by-week basis.
  •    |