IN RE CYBERMEDIA INC SECURITIES LITIGATION


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Keywords & Phrases

CaseNo: CCAL175349, CourtName: CLASS ACTION CASES, State: CA California, UniqueCaseRef: LCD>CCAL175349, Cybermedia, Securities, First Aid, Class Action, Facts, Stock, Sales, Block Group, Compuserve, Materials, Shares, Common Stock, Revenue, Market, Distribution Channel, Warrier, Ipo, Misleading, Subscribers, Dso, Allegations, Channel, Federal Securities Laws, Registration Statement, Prospectus, Securities Act, Online Services, Individual Defendants, Connection, Support, United States, Complaints, Misrepresentations, Larry Romine, Receivables, Eps, Unni, Cis, Class Period, Competition , ContentID: 120249620

Case Documents

COMPLAINT B
[ see first page and extracted highlights below ] ItemID: 122394

27 pages
HTML

COMPLAINT B 2
[ see first page and extracted highlights below ] ItemID: 122393

55 pages
TXT

COMPLAINT A
[ see first page and extracted highlights below ] ItemID: 122392

28 pages
HTML

1999-03-08

Government Exhibit # 2ND CONSOLIDATED AMENDED COMPLAINT
[ see first page and extracted highlights below ] ItemID: 122390

76 pages
PDF

1998-03-18

CIVIL DOCKET FOR CASE 98-CV-1811
[ see first page and extracted highlights below ] ItemID: 122391

2 pages
TXT

Total Documents: 5 documents , 188 pages

Price: $ 39.95

IVESLCD01 KGI0001

1 . COMPLAINT B

EXTRACTED KEY WORDS

SECURITIES
CLASS ACTION
FACTS
BLOCK GROUP
COMPUSERVE
MATERIALS
DEFENDANTS
IPO
SUBSCRIBERS
SHARES
ALLEGATIONS
COUNSEL
MEMBERS
REGISTRATION STATEMENT
PROSPECTUS
SECURITIES ACT
ONLINE SERVICES
COMMON STOCK
CONNECTION
MISREPRESENTATIONS
LARRY ROMINE
INDIVIDUAL DEFENDANTS
CIS
EXCHANGE COMMISSION
STATES DISTRICT COURT
UNITED STATES
MISLEADING
CONSUMER ONLINE
FEDERAL SECURITIES LAWS

                     UNITED STATES DISTRICT COURT
                      SOUTHERN DISTRICT OF OHIO

------------------------------------x
LARRY ROMINE, on behalf of himself :
and all others similarly situated, :
                                   :  CASE NO. C2-96-717
          Plaintiff,               :
                                   :  CLASS ACTION COMPLAINT FOR
     v.                            :  VIOLATIONS OF FEDERAL
                                   :  SECURITIES LAWS
                                   :
COMPUSERVE CORPORATION; H&R        :
BLOCK, INC.; H&R BLOCK GROUP, INC.;:  JURY TRIAL DEMANDED
RICHARD H. BROWN; ROBERT J; MASSEY;:
HERBERT J. KAHN; KENNETH MARINIK;  :
HENRY F. FRIGON; ROGER W. HALE;    :
MORTON I. SOSLAND,                 :
                                   :
          Defendants.              :
                                   :
------------------------------------x


     Plaintiff, by his attorneys, alleges upon information and

belief (based, inter alia, upon a review and analysis of documents

filed with the Securities and Exchange Commission, press releases,

reports of securities analysts, news reports, and the investigation

conducted by and through plaintiff's counsel), except as to the

allegations specifically pertaining to plaintiff and his counsel,

as follows.  Plaintiff believes that further substantial evidentia-

ry support will exist for the allegations set forth below after a

reasonable opportunity for discovery.

                          INTRODUCTION

     1.   This is a class action which arises out of material

misrepresentations and omissions of fact made in connection with an

SNIPPETS:

UNITED STATES DISTRICT COURT

filed with the Securities and Exchange Commission, press releases,

reports of securities analysts, news reports, and the investigation

allegations specifically pertaining to plaintiff and his counsel,

common stock of CompuServe Corporation ("CompuServe" or the

Statements made in connection with the IPO were materially false or misleading in that, among

declining enrollment of new subscribers were eroding the Company's

Plaintiff and other members of the investing public

purchased CompuServe common stock at an artificially inflated price

based upon defendants' misrepresentations and omissions.

CompuServe shares now trade for substantially less than half of

Sections 11, 12, and 15 of the Securities Act of 1933 (the

prospectus that were filed with the Securities

Each of the individual defendants (the "Individual

through its wholly-owned subsidiary H&R Block Group,

PLAINTIFF'S CLASS ACTION ALLEGATIONS

Whether the federal securities laws were violated by

The Company's revenues have increased significantly over the last three years, primarily

The Company has recently begun a major new marketing and distribution effort to capitalize on

New CIS subscribers receive ten free hours of access in their first month.

independent industry analysts projected that the subscriber base of online services outside

contained untrue statements of material facts,

statements contained in the Prospectus and other offering materials

CERTIFICATION OF LARRY ROMINE

2 . COMPLAINT B 2

EXTRACTED KEY WORDS

DEFENDANTS
FIRST AID
SALES
WARRIER
CLASS ACTION
PLAINTIFF
MARKET
REVENUE
SUPPORT
COMPLAINTS
DSO
DISTRIBUTION CHANNEL
RECEIVABLES
FEDERAL SECURITIES LAWS
UNNI
CLASS PERIOD
MISLEADING
INGRAM MICRO
EPS
UNINSTALLER
AUTOMATIC SERVICE
UNITED STATES
COMPETITION
MANAGEMENT
TECHNICAL SUPPORT
OBSOLETE INVENTORY
SELLING BUSINESS SOFTWARE
REPRESENTATIONS
TECHNOLOGY


   Kevin J. Yourman (CSB #147159)
   Vahn Alexander (CSB #167373)
   WEISS & YOURMAN
   10940 Wilshire Boulevard
   24th Floor
   Los Angeles, CA 90024
   (310) 208-2800

   Edward P. Dietrich (CSB #176118)
   Michael D. Braun (CSB #167416)
   STULL, STULL & BRODY
   10940 Wilshire Boulevard
   Suite 2300
   Los Angeles, CA 90024
   (310) 209-2468

   Attorneys for Plaintiff

   Steven J. Toll
   Matthew J. Ide
   Kristopher A. Kinkade
   COHEN, MILSTEIN, HAUSFELD
    & T0LL, P.L.L.C.
   999 Third Avenue
   Suite 3600
   Seattle, WA 98104-4001
   (206) 521-0080


                        UNITED STATES DISTRICT COURT

                       CENTRAL DISTRICT OF CALIFORNIA

   JUDY LUI, On Behalf of Herself and All
   Others Similarly Situated,

                         Plaintiff,

              v.

   CYBERMEDIA, INC., UNNI S. WARRIER,
   JEFFREY W. BEAUMONT, SRIKANTH
   CHARI, BRAD R. KINGSBURY, PETER T.
   MORRIS, KANWAL REKHI, CHARLES M.
   VALENTINE, ANNE T. LAM and RONALD
   S. POSNER

SNIPPETS:

Attorneys for Plaintiff

This action is being brought as a class action on behalf of all individuals who purchased or

As is more fully alleged throughout the Complaint, defendants engaged in a scheme and common

CyberMedia provides automatic service and support software for Windows-based PCS, allowing

The Company commenced operations in November 1991 and introduced the first Windows 95

Its First Aid line had garnished market acceptance from consumers and top honors from

Basically we have about 10 different meters with which we run the company, and I monitor

First Aid was the pioneer in the niche marketplace for service and support software and did

Although bigger and better capitalized companies announced plans to enter the service and

By the end of July, CyberMedia had reported another record quarter, released an interim

All the hype created by CyberMedia's representations paid off and its stock price began to

What CyberMedia and the other defendants knew at the time, but the market did not, was that: in a significant increase from the normal rate of return for First Aid products, which would

In order to stave off a decline in net sales, CyberMedia continued to ship product into the

CyberMedia's DSO, the length of time cash is tied up in receivables, had been increasing at

To allay investor concerns, CyberMedia blamed increasing DSO on poor payment terms accorded

Moreover, CyberMedia factored its best receivables -- those most likely to sell through -- d 98 in such large volume that net sales would be able to absorb the increase in return reserves

While defendants were busy masking poor retail sales by allowing obsolete product to languish

So many complaints were being logged on CyberMedia's web site alone, that the Company's

Although CyberMedia was inundated with consumer complaints and First Aid 98 was being

It is also appropriate to treat the Individual Defendants as a group for pleading purposes

"This acquisition enhances our problem-fixing technology, leverages our retail and

First Aid Deluxe is the world's best-selling automatic service and support software product

3 . COMPLAINT A

EXTRACTED KEY WORDS

SECURITIES
CLASS ACTION
FACTS
BLOCK GROUP
COMPUSERVE
MATERIALS
DEFENDANTS
IPO
SUBSCRIBERS
SHARES
ALLEGATIONS
COUNSEL
MEMBERS
REGISTRATION STATEMENT
PROSPECTUS
SECURITIES ACT
ONLINE SERVICES
COMMON STOCK
CONNECTION
MISREPRESENTATIONS
LARRY ROMINE
INDIVIDUAL DEFENDANTS
CIS
EXCHANGE COMMISSION
STATES DISTRICT COURT
UNITED STATES
MISLEADING
CONSUMER ONLINE
FEDERAL SECURITIES LAWS


                     UNITED STATES DISTRICT COURT
                      SOUTHERN DISTRICT OF OHIO

------------------------------------x
LARRY ROMINE, on behalf of himself :
and all others similarly situated, :
                                   :  CASE NO. C2-96-717
          Plaintiff,               :
                                   :  CLASS ACTION COMPLAINT FOR
     v.                            :  VIOLATIONS OF FEDERAL
                                   :  SECURITIES LAWS
                                   :
COMPUSERVE CORPORATION; H&R        :
BLOCK, INC.; H&R BLOCK GROUP, INC.;:  JURY TRIAL DEMANDED
RICHARD H. BROWN; ROBERT J; MASSEY;:
HERBERT J. KAHN; KENNETH MARINIK;  :
HENRY F. FRIGON; ROGER W. HALE;    :
MORTON I. SOSLAND,                 :
                                   :
          Defendants.              :
                                   :
------------------------------------x


     Plaintiff, by his attorneys, alleges upon information and

belief (based, inter alia, upon a review and analysis of documents

filed with the Securities and Exchange Commission, press releases,

reports of securities analysts, news reports, and the investigation

conducted by and through plaintiff's counsel), except as to the

allegations specifically pertaining to plaintiff and his counsel,

as follows.  Plaintiff believes that further substantial evidentia-

ry support will exist for the allegations set forth below after a

reasonable opportunity for discovery.

                          INTRODUCTION

     1.   This is a class action which arises out of material

misrepresentations and omissions of fact made in connection with an

SNIPPETS:

UNITED STATES DISTRICT COURT

filed with the Securities and Exchange Commission, press releases,

reports of securities analysts, news reports, and the investigation

allegations specifically pertaining to plaintiff and his counsel,

common stock of CompuServe Corporation ("CompuServe" or the

Statements made in connection with the IPO were materially false or misleading in that, among

declining enrollment of new subscribers were eroding the Company's

Plaintiff and other members of the investing public

purchased CompuServe common stock at an artificially inflated price

based upon defendants' misrepresentations and omissions.

CompuServe shares now trade for substantially less than half of

Sections 11, 12, and 15 of the Securities Act of 1933 (the

prospectus that were filed with the Securities

Each of the individual defendants (the "Individual

through its wholly-owned subsidiary H&R Block Group,

PLAINTIFF'S CLASS ACTION ALLEGATIONS

Whether the federal securities laws were violated by

The Company's revenues have increased significantly over the last three years, primarily

The Company has recently begun a major new marketing and distribution effort to capitalize on

New CIS subscribers receive ten free hours of access in their first month.

independent industry analysts projected that the subscriber base of online services outside

contained untrue statements of material facts,

statements contained in the Prospectus and other offering materials

CERTIFICATION OF LARRY ROMINE

4 . Government Exhibit # 2ND CONSOLIDATED AMENDED COMPLAINT

EXTRACTED KEY WORDS

STOCK
DEFENDANTS
FIRST AID
SECURITIES
CHANNEL
PLAINTIFF
SALES
COMMON STOCK
REVENUE
DISTRIBUTION CHANNEL
MARKET
SHARES
PRICE
SELL
EXCHANGE ACT
DSO
EPS
INDIVIDUAL DEFENDANTS
REPRESENTATIONS
MISLEADING
FORMER CYBERMEDIA EMPLOYEES
LITIGATION
WILSHIRE BOULEVARD
CSB
PAYMENT TERMS
EXCESSIVE SHIPMENTS
COMPETITION
MANAGEMENT
CORPORATE DATA REVEALS

 1  Michael D. Braun  (CSB  #167416)
       STULL,  STULL  &  BRODY
 2  I0940  Wilshire  Boulevard
       Suite 2300
 3  Los Angeles,  CA  90024
       13 10)  209-2468
 4  Kevin J. Yourman  (CSB #147159)
 5  Vahn Alexander  (CSB  #167373)
       WEISS &  YOURMAN
 6  10940  Wilshire  Boulevard
       24th Floor
 7  Los Angeles,  CA  90024
       :3 10)  208-2800
 8  Attorneys  for  Plaintiffs
 9
10                                    UNITED  STATES  DISTRICT  COURT
11                                  CENTRAL  DISTRICT  OF  CALIFORNIA
12
13
14                                                            Master  Docket  No.:  CV98-1SllCBM   
       l-N RE:  CYBERMEDIA  LITIGATION
15                                                      I     CLASS  ACTION
If                                                            SECOND  CONSOLXJ)ATED
                                                              AMENDED  COMPLAmT  FOR
15                                                            VIOLATION      OF FEDERAL
                                                              SECURITIES  LAWS
18                                                            w
19
20
21
22
23
24
25
26
27
28


       ::ODMA\WORLDOX\W:\DOCS\CYBERMEDW'LD\SAC2.WPD



 1            Plaintiffs,  through their attorneys, bring this action on behalf of themselves and
2  similarly  situated, and on personal knowledge as to themselves and their activities,  and based
3  investigation  conducted by counsel, including  interviews  with  former  CyberMedia  employees,
4  hereby allege as follows:
5                                            SUMMARY  OF  ACTION
6              1.      This action is being brought as a class action on behalf of all  individuals

SNIPPETS:

Michael D. Braun (CSB #167416)

10940 Wilshire Boulevard 24th Floor

investigation conducted by counsel, including interviews with former CyberMedia employees,

violations of 5 6 1 Oand 20of the Securities Exchange Act of 1934,

15 and common course of conduct including the dissemination of false and misleading statements

Defendants engaged in

19 including First Aid 97 and First Aid 98, in order to meet and exceed the financial

Its First Aid line had garnished market acceptance from consumers and top

15 CyberMedia began to wane and CyberMedia's stock price began to fall as investor concerns

22 CyberMedia shares until at least April 23,

22 the distribution channel just before the end of the first quarter ending March 3 1,

27 take an internally projected time of 154 days to sell through the product,

and a management that was in complete control of day to day operations,

16 support software and did not have any real competition.

11 inventory to 216,907 units and pushed out "days sales outstanding" to well over 3 months.

14 representations the Company's stock price began to climb, reaching a high of over $30.00

23 booked as revenue and had the effect of artificially bolstering earnings per share causing

EPS.

19 products languishing in the channel as reflected by an ever increasing DSO.

CyberMedia blamed increasing DSO on poor payment terms accorded

26 because they were based on excessive shipments of products to the distribution channel

September 1997, corporate data reveals that actual sales were only 1,170 units.

Plaintiff St. John has been damaged as a result of

Posner are referred to herein as the "Individual Defendants."

14 SEC under the federal securities laws, whose common stock is registered with the SEC,

21 and have retained counsel competent and experienced in class and securities litigation,

5 . CIVIL DOCKET FOR CASE 98-CV-1811

EXTRACTED KEY WORDS

JURY DEMAND
DOCKET
ENTRY
COMPLAINT
KANWAL REKHI
CHIAT-GUAN ONG
EICK
CHARLES
DISCOVERY
COURT
DISTRICT
SUMMONS
PLAINTIFF CHIAT-GUAN ONG
AMENDED COMPLAINT
MORRIS
PETER
KINGSBURY
BRAD
SRIKANTH CHARI
BEAUMONT
JEFFREY
WARRIER
UNNI
CYBERMEDIA
MICHAEL DAVID BRAUN
SECURITIES EXCHANGE ACT
DKT
MARSHALL JURY DEMAND
JUDGE CONSUELO

Docket as of March 18, 1998 (retrieved 4/25/98)

Proceedings include all events.
2:98cv1811    Chiat-Guan Ong v. Cybermedia Inc, et al                    (Ex)

                                                            (Ex)
                       U.S. District Court
          Central District of California (Western Div.)

               CIVIL DOCKET FOR CASE #: 98-CV-1811

Chiat-Guan Ong v. Cybermedia Inc, et al                     Filed: 03/12/98
Assigned to: Judge Consuelo B. Marshall      Jury demand: Both
             Referred to: Discovery Charles F. Eick
Demand: $0,000                               Nature of Suit:  850
Lead Docket: None                            Jurisdiction: Federal Question
Dkt# in other court: None

Cause: 15:78m(a) Securities Exchange Act


CHIAT-GUAN ONG, on behalf of      Michael David Braun
himself and all others            (COR LD NTC)
similarly situated                Edward Philip Dietrich
     plaintiff                    (COR LD NTC)
                                  Stull Stull & Brody
                                  10940 Wilshire Blvd
                                  Suite 2300
                                  Los Angeles, CA 90024
                                  310-209-2468

                                  Kevin J Yourman
                                  (COR LD NTC)
                                  Vahn Alexander
                                  (COR LD NTC)
                                  Weiss & Yourman
                                  10940 Wilshire Blvd
                                  24th Floor
                                  Los Angeles, CA 90067
                                  310-208-2800


   v.


CYBERMEDIA INC
     defendant

SNIPPETS:

Docket as of March 18,

U.S. District Court Central District of California

Assigned to: Judge Consuelo B. Marshall Jury demand: Both

Referred to: Discovery Charles F. Eick

Dkt# in other court: None

Cause: 15:78mSecurities Exchange Act

CHIAT-GUAN ONG, on behalf of Michael David Braun