LegalCaseDocs.com
shopping cart  
  |     
Search
 

 
New Visitors


 VeriSign Secure Site

 Get Adobe Reader

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



Keywords & Phrases
CaseNo: CC80968, CourtName: CLASS ACTION CASES, State: FL Florida, UniqueCaseRef: LCD>CC80968, Cyberguard, Revenues, Common Stock, Sales, Loss, Carberry, Act, Facts, Representations, Misleading, Executive Officer, Audit, Assets, Gross Profit, Resellers, Misrepresentations, Gross Margin, Kpmg, Gaap, Chief Executive Officer, Operating Loss, Contracts, Cykrguard, Security Products, Allegations Set Fclnh, Substantiai, Cybeffiuard, Fraudulent, Thereunder, Truth, Arca Acuuisition, Indicators, Revenue Recognition, Basis , ContentID: 120249619

Case Documents
1 1999-08-23 CONSOLIDATED AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 122389
145 pages
PDF
2 1998-09-10 COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 122388
21 pages
PDF
Total Documents: 2 documents , 166 pages
Price: $ 24.95


IVESLCD01 KGI0001
 
 

 Forgot your password?


1 . CONSOLIDATED AMENDED COMPLAINT

EXTRACTED KEY WORDS
CYBERGUARD
REVENUES
PLAINTIFFS
COMMON STOCK
SALES
LOSS
CARBERRY
ACT
FACTS
REPRESENTATIONS
MISLEADING
EXECUTIVE OFFICER
AUDIT
ASSETS
GROSS PROFIT
RESELLERS
MISREPRESENTATIONS
GROSS MARGIN
KPMG
GAAP
CHIEF EXECUTIVE OFFICER
OPERATING LOSS
CONTRACTS
CYKRGUARD
SECURITY PRODUCTS
ALLEGATIONS SET FCLNH
SUBSTANTIAI
CYBEFFIUARD
FRAUDULENT
                                 UNITED  STATES  DISTRICT  COURT                         NIGHT     
                          FOR  THE !WJTHERN  DISTRICT  QF                                     FILED
                                                                             FLORiDA
                                              MIAMI PIVISION                              





STEVEN  CHENEY  at al..  individually  ~rul
on  behaIf  of  all  others  simikIy  ~ituatcd,                      ;

                                    Plaintiff,                       i 1
                  V.
                                                                     1
CYBERGUARD  CORPORATIOFd,  ROBERT                                    )
L.  CARBERRY  and  WILLIAM  D.  MURRAY,                              )

                                    Defendants.                      ;
_--- -_l_l---__._____T1_  * .__*  - LI--q"  _"ch-ewmm+qM*
                                                      q_+-. -"---I  x

                CONSQLT'DATED AND  AMENDED  CLASS  ACTION  COMPLAINT

         Lead  plabtiffs  Robert  Ciovic,  Michael  Brown,  Sudhir  Mehta,  Anthony  Paoltiico,

I&IO  Miller,  Etiot  Meshularn.  Jorin  Daieanes,  Thomas Schueck and  Mary  LOU Htivey

("Plaintiffs')  make the  allegations set fclnh  in  this Amended  Class Action  Complaint  upon

information  and belief,  except those allegations  specifically  pertaining  to  Plaintiffs  or 

cour~l.  which  allegations  are based on  Plaintiffs'  personal  knowlerlge.

                                                              1.
                                        NATTJREOFTHEACTION
         I.        This  is a wurities  fraud  class action brought  on  behalf  of  a class (the 

consisting of  in\lestors  who  acguired  the  common  stock of defendant  CyberGuard

&qorarion  ("CyberGuard"  or  the  `Company")  between  November  7,  1996 and August  24,



3998 (the "Class Period"), and who wecc damaged thereby.  Plaintiffs seek re&iea  under

tht &&tics       and Exctige  Act  of  1934 (the "Exchange Act*`).

        2.       The defendants i~ltie:  (a) Robert Carberry, who was CyberGuard's
SNIPPETS:
  • make the allegations set fclnh in this Amended Class Action Complaint upon
  • which allegations are based on Plaintiffs' personal knowlerlge.
  • consisting of in\lestors who acguired the common stock of defendant CyberGuard
  • &qorarion ("CyberGuard" or the `Company") between November 7, 1996 and August 24,
  • tht &&tics and Exctige Act of 1934.
  • KPMG Peat Marwick LLP ("KPMG" and.
  • with the remaining defendants, "Defendants"), is also named as a wendant.
  • Defendants repeattxlly ati materi;lIly uverstatti the revenues,
  • current assets and total assets carried on CykrGuatd's balance sheet in order to convince
  • revenues related to CyberC;uard's purported "sales" of its software products to large
  • CyberGuard was permitted to recognize revenue under GAAP only when goads were shipped
  • CykrGuard investors.
  • net profit, accounts receivable, current assets and total assets was materi~~lly misleading.
  • issued a `clean audit opinian" with respect to the Co,mpany's 1997 fisca1 year finan&
  • communications but newxthelcss permitted the Company to continue its fraudulent accounting
  • accounts rmivable attributable to the Compllny's international resellers were not being paid
  • The facts allqed b&w also compel the conclusion that Defcndarrts' materid
  • previously substantiaI holctings in CyberGuard common stwk md were always made within a
  • misrepresentations at issue here further support the
  • CArberry, Murray, Wheeler and James were high-ranking and financially sophisticated
  • CykrGuard first indicated that the Company would have to mtate its financial statements
  • Cybeffiuard stock had been delisted by NASDAQ.
  • Presidm anb Chief Executive Officer from June 19% until November 10,
  • the Company's gross profit for the quiMer
  • the Company's quarterly operating loss
  • representations were materially false at the time that they were made.
  • Unearned income on service contracts is
  • gross margin produced by the Company during the second quarter,
  • of the Cknpany's network security products increased to $1.

  • 2 . COMPLAINT

    EXTRACTED KEY WORDS
    TRUTH
    ARCA ACUUISITION
    INDICATORS
    REVENUE RECOGNITION
    BASIS
    
                                             UNITED  STATES  DISTRICT                            COURT
                                             SOUTHERN  DISTRICT                         OF  FLORIDA
    
                                                                                  ---X
    
        EDWIN  DICKLER,                     individually                    and  on               Civil
        behalf        of,all              others          similarly
        situated,                                                                                 CLASS
                                                                                                 
                                                Plaintiff,
    
                -  v.  -                                                                    :  JURY 
        CYBERGUARD  CORPORATION,                                 ROBERT  L.
        CARBERRY  and  WILLIAM                            D.  MURRAY,
    
                                                Defendants.
    
    
    
                       Plaintiff,                    individually               and  on  behalf        
    persons         similarly               situated,              by  his  undersigned                
    complaint,               alleges          upon  personal                   knowledge          as 
    
    own  acts,         and  upon  information                               and  belief          as  to
    
    matters,          based  upon,                   inter        alia,        the  investigation      
    through         his  attorneys,                     which         investigation              
    
    things,         a  review             of  the  public                   documents,          
    
    Commission               ("SECVV)  filings,                    analyst          reports,         
    
    media  reports,                regarding                   CyberGuard           Corporation        
    
    the  t'Companytt),                   as  follows:
    
    
    
                                                    JURISDICTION                      AND  VENUE
    
                         1.          The  claims              alleged            herein         arise  
    10(b)          and  20  of  the  Securities                           Exchange            Act  of 
    
    "Exchange            Act"),          15  U.S.C.             §§  78j(b)               and  78t,  and
    C.F.R.          §  240.10b-5              promulgated                 thereunder.
    
                         2.          The  jurisdiction                        of  this        Court    
    
    27  of  the  Exchange                     Act,        15  U.S.C.             §  78aa  and  28 
    
    SNIPPETS:
  • BASIS OF PRESENTATION
  • REVENUE RECOGNITION
  • indicators.
  • The Arca Acuuisition
  • thereunder.
  •    |