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VERITY INC CLASS ACTION LITIGATION Click to find out why . . .



Keywords & Phrases
CaseNo: VICAL178343, CourtName: CLASS ACTION II, State: CA California, UniqueCaseRef: LCD>VICAL178343, Verity, Lead Plaintiff, Complaint, Report, Analyst, Lead Plaintiff Group, Lerner Lead Plaintiff, Securities, Allegation, Act, Allege, Class Action, San Francisco, Revenue, Software Products, Shortfall, Cir, Allegations, Facts, Analysts, Stock Price, Foo, Corporate Intranets, Stickney, Silicon Graphics, Motion, Officers, Duty, Fails, Management, Customers, Exchange Act, Independent Software Vendors, E-commerce Providers, Litig, Individual Defendants, Dismiss, Securities Analysts, Misleading , ContentID: 120251979

Case Documents
1   REPLY MEMORANDUM IN SUPPORT OF MOTION TO DISMISS AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 126439
11 pages
PDF
2   REPLY MEMORANDUM IN SUPPORT OF MOTION
[ see first page and extracted highlights below  ] ItemID: 126438
24 pages
PDF
3   DECLARATION OF CLAY C WHEELER IN SUPPORT OF MOTION DISMISS
[ see first page and extracted highlights below  ] ItemID: 126429
71 pages
PDF
4 2000-12-22 ORDER
[ see first page and extracted highlights below  ] ItemID: 126435
4 pages
PDF
5 2000-12-22 MOTION TO DISMISS AMENDED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 126433
17 pages
PDF
6 2000-07-21 MOTION TO DISMISS CONSOLIDATED COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 126434
27 pages
PDF
7 2000-04-07 RE-NOTICE OF MOTION TO CONSOLIDATE
[ see first page and extracted highlights below  ] ItemID: 126437
4 pages
PDF
8 2000-04-07 RE-NOTICE OF MOTION TO APPOINT
[ see first page and extracted highlights below  ] ItemID: 126436
4 pages
PDF
9 2000-03-30 MOTION AND MEMO IN SUPPORT OF MOTION TO CONSOLIDATE
[ see first page and extracted highlights below  ] ItemID: 126432
8 pages
PDF
10 2000-03-30 MOTION AND MEMO IN SUPPORT OF MOTION TO APPOINT
[ see first page and extracted highlights below  ] ItemID: 126431
11 pages
PDF
11 2000-03-30 DECLARATION OF DAVID R STICKNEY IN SUPPORT OF MOTION TO CONSOLIDATE
[ see first page and extracted highlights below  ] ItemID: 126430
4 pages
PDF
12 1999-12-01 COMPLAINT 2
[ see first page and extracted highlights below  ] ItemID: 126428
15 pages
PDF
13 1999-12-01 COMPLAINT 1
[ see first page and extracted highlights below  ] ItemID: 126427
14 pages
PDF
Total Documents: 13 documents , 214 pages
Price: $ 79.95


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1 . REPLY MEMORANDUM IN SUPPORT OF MOTION TO DISMISS AMENDED COMPLAINT

EXTRACTED KEY WORDS
ALLEGATIONS
DEFENDANTS
COURT
INFERENCE
ALLEGE
SAC
HOCHFELD
COMPLAINT
KNOWING
REASONS
OPP
FRAUD
ANALYST
VERITY
PLEADING
INSUFFICIENT
MAYNARD
CIR
LAW
MANAGEMENT
EARNINGS
SUPPORT
SHORTFALL
OFFICERS
FAILS
PLAINTIFFS ACCUSE
SCIENTER
SPECIFICITY
REVENUE
fi





                                      1  COOLEY GODWARD LLP
                                                WILLIAM S. FREEMAN (82002)
                                      2  CLAY C. WHEELER  (1 93870)
                                                Five Palo Alto Square
                                      3  3000 El Camino  Real
                                                Palo Alto,  CA 94306-2  155
                                      4  Telephone:  (650) 843-5000
                                                Facsimile:                                    (650)
                                      5  Attorneys for Defendants
                                      6  VERITY, INC., GARY J. SBONA,  ANTHONY
                                                BETTENCOURT 111, JAMES E. TICEHURST,
                                      7  STEVE YOUNG, and RON  WEISSMAN

                                      8                                                            

                                      9                                                            
IA
                                 10

                                 11                                                                
RB
                                 12  In re VERITY, INC. SECURITIES                                 
UM

                    IN SUPPORT OF MOTION
                                 13  LITIGATION                                                    

     SECOND CONSOLIDATED  AMENDED
                                                ~    _    _    _     _
                                                                     ~     ~~  ~    ~     ~~  ~  ~ 
MPLAINT
                                 14  This Document Relates to:                                     
               22,2000
                                 15                                 ALL  ACTIONS.                  
     1O:OO a.m.
                                                                                                   
     Hon. Charles R. Breyer
                                 16                                                                
t Yet Set
                                 17

                                 18

SNIPPETS:
  • Plaintiffs reargue at length the
  • (Opp.
  • criticize the Court's determination that their factual allegations were insufficiently
  • 10 Complaint corrects the pleading defects spelled out by the Court.
  • 18 December 1, they now allege, vaguely, a series of undifferentiated conversations "during
  • and wrong as a matter of law.
  • The SAC should
  • allegedly made to analyst Bert Hochfeld.
  • and the defendants knew that Verity's revenue targets had not been achieved.
  • 10 Court ruled that although the statements were alleged with sufficient specificity,
  • 11 were utterly implausible and failed to raise a strong inference of scienter.
  • their central allegation is unchanged: "Officers
  • 28 Bettencourt and a Verity account manager "discussed the possibility of holding `open' the
  • As the Court has already observed, knowing that a deal is "at risk" is far
  • allegations that suggest that defendants actually made the statements which plaintiffs accuse
  • It therefore fails to meet the requirement of the PSLRA
  • 22 "[dlefendant CEO Sbona admitted considering preannouncing the anticipated shortfall," and
  • Plaintiffs cite SAC 7 33 in support of this argument,
  • 25 Verity "preannounced" an earnings shortfall "as it became known to management," shortly
  • F.3d 970,974 (9th Cir.
  • establish that such statements were knowingly false, an essential requirement for any fraud
  • 10 November 30 is even weaker and, for obvious reasons, adds nothing of substance to the
  • 18 statements to analyst Maynard is nothing more than a request for reconsideration of the
  • 19 original ruling that these allegations were insufficient.

  • 2 . REPLY MEMORANDUM IN SUPPORT OF MOTION

    EXTRACTED KEY WORDS
    ANALYST
    REPORT
    SILICON GRAPHICS
    ALLEGATIONS
    CIR
    LAW
    DUTY
    LIABILITY
    PLAINTIFFS
    LITIG
    MATTER
    PROJECTION
    COMPLAINT
    COURT
    SUPPORT
    BUSINESS
    MANAGEMENT
    SINGLE CORPORATE OFFICER
    THIRD-PARTY ANALYST
    COOLEY GODWARD LLP
    ORDINARY EARNINGS FORECAST
    MEMORANDUM
    GRAPHICS PLEADING STANDARDS
    ATTORNEYS
    INFERENCE
    VOLUNTARY DISCLOSURE
    COWEN REPORT
    COMMUNICATIONS
    SCIENTER
    
                             1  COOLEY GODWARD LLP
                                    WILLIAM S. FREEMAN (82002)
                             2  CLAY C. WHEELER (193870)
                                    Five Palo Alto Square
                             3  3000 El Camino Real
                                    Palo Alto, CA 94306-21 55
                             4  Telephone:  (650) 843-5000
                                    Facsimile:     (650) 857-0663
                             5  Attorneys for Defendants
                             6  VERITY, INC., GARY J. SBONA,  ANTHONY
                                    BETTENCOURT 111, and JAMES E. TICEHURST
                             7
                             8                                    UNITED STATES DISTRICT COURT
                             9                                NORTHERN  DISTRICT  OF CALIFORNIA
                           10
                           11                                                  NO. C 99-5337 CRB
                           12  In  re  VERITY, INC. SECURITIES                 REPLY  MEMORANDUM
                                                                                                       
                                    LITIGATION                                 TO DISMISS
                                                                                           
                           13                                                  CLASS ACTION COMPLAINT
                                    This Document Relates to:
                           14                                                  Date:        July 21,2000
                                           ALL  ACTIONS.                       Time:        1O:OO a.m.
                           15                                                  Judge:       Hon.
                           16                                                  Trial Date:  Not  Yet 
    
                           17
    
                           18
    
                           19
    
                           20
    
                           21
    
                           22
    
                           23
    
                           24
    
                           25
    
                           26
    
                           27
    
    
    SNIPPETS:
  • COOLEY GODWARD LLP
  • Attorneys for Defendants
  • 11 that call into question an earlier projection made by a third-party analyst.
  • 13 a single statement by a single corporate officer, relying instead on general allegations
  • 16 the Silicon Graphics pleading standards.
  • 22 theory of liability is uncertain (Defendants' Memorandum in Support of Motion to Dismiss
  • plaintiffs have now clarified their two theories of liability.
  • Both fail as a matter of law.
  • This claim is made in connection with the December 1, 1999 Josephthal & Co. report
  • a high degree of particularity so as to create a strong inference of scienter.
  • The law does not impose such a duty.
  • There is No Duty to Update the Statements of a Third-party Analyst
  • F.3d 616 (9th Cir.
  • In re PeopleSoj?, Inc., Sec. Litig.
  • 17 the most basic details of supposed communications by "defendants" to the authors of the
  • It mischaracterizes the Complaint,
  • The court concluded
  • 15 significant business and product problems.
  • 19 Opposition Memorandum, plaintiffs repeatedly assert that "defendants" made a series of
  • 21 lengthy quote from the November 9, 1999 S.G. Cowen report.
  • 11 management, there would be no duty to "update" them.
  • 16 voluntary disclosure of an ordinary earnings forecast does not trigger any duty to
  • 16 SEC's goal of encouraging voluntary disclosure of company forecasts."

  • 3 . DECLARATION OF CLAY C WHEELER IN SUPPORT OF MOTION DISMISS

    EXTRACTED KEY WORDS
    VERITY
    COMPLAINT
    FOO
    PLAINTIFFS
    ANALYSTS
    SECURITIES
    REVENUE
    DISMISS
    SHORTFALL
    STOCK PRICE
    CORPORATE INTRANETS
    MISLEADING
    CLASS ACTION
    DUTY
    REPORT
    INDEPENDENT SOFTWARE VENDORS
    LITIGATION
    MAJOR SALES
    E-COMMERCE PROVIDERS
    ONLINE PUBLISHERS
    EXTRANETS
    DISAPPOINTING
    INDIVIDUAL DEFENDANTS
    IMMEDIATELY DISCLOSE
    ALLEGATIONS
    PROJECTIONS
    VERITY MANAGEMENT
    INVESTORS
    DISCLOSURE
    
    :>                       :E
    
    
    
    
    
                                              1  COOLEY GODWARD  LLP
                                                      WILLIAM S. FREEMAN (82002)
                                             2  CLAY  C. WHEELER (1 93870)
                                                      Five Palo Alto Square
                                              3  3000 El Camino Real
                                                      Palo Alto, CA 94306-2155
                                             4  Telephone:             (650) 843-5000
                                                      Facsimile:       (650) 857-0663
                                              5
                                                      Attorneys for Defendants
                                              6  VERITY,  INC., GARY  J. SBONA, ANTHONY
                                                      BETTENCOURT 111, JAMES E. TICEHURST,
                                              7  STEVE YOUNG, and RON WEISSMAN
                                              8
                                              9                                                 UNITED
                                             10                                      NORTHERN DISTRICT
    
                                             11                                                        
                                             12  In  re VERITY, INC. SECURITIES                        
    
             OF CLAY c. WHEELER  IN
                                             13  LITIGATION                                            
    
                         MOTION
                                                                                                       
                                                                                                       
    FFS'  SECOND
                                                                                                       
    
              AMENDED
    
                        CLASS
                                             14  This Document Relates to:                             
                                             15                ALL ACTIONS.                            
                   22,2000
                                                                                                       
    a.m.
                                             16                                                        
    arles R. Breyer
                                             17                                                        
                                             18                                        ~~~~        ~
    
    
    
    SNIPPETS:
  • Defendants' Motion to Dismiss Plaintiffs'
  • Second Consolidated Amended Class Action
  • 16 purchasers of the securities of Verity,
  • 18 releasing their disappointing second quarter ("2ndQ
  • 19 to analysts about Verity's fmancial strength during the delay.
  • 20 dismiss the consolidated complaint on the ground that it does not state a claim.
  • 25 equipment manufacturers and independent software vendors.
  • $5 million shodall in the revenue projections.
  • Verity had announced revenue shortfalls withm
  • Pursuant to the Private Securities
  • Litigation Reform Act, the Court consolidated the three complaints and
  • 21 the individual defendants sold any shares between December 1 and December 14,
  • 27 misleading, the reason or reasons why the statement is misleading, and, if an allegation
  • 24 announcing the shortfall was a violation of that duty and a fiaud.
  • 10 published report.
  • While at the motion to dismiss stage the Court is required to accept plaintiffs' allegations
  • in early November 1999, see Complaint 7 15, defendants were obligated to disclose that the 4
  • 28 immediately disclose those results; a duty to disclose "does not arise fiom the mere
  • This duty of disclosure is known as the "duty to correct."
  • 10 remained `alive' in the minds of investors as a continuing representation."
  • 28 refers to mformation which may have been provided to the analyst by Verity management,
  • defendants desire to protect the stock price for current shareholders.
  • corporate intranets and extranets, online publishers, e-commerce providers, original equipment
  • 16 had been unable to close three major sales which translated into a minimum $5 million

  • 4 . ORDER

    EXTRACTED KEY WORDS
    DISMISS
    DEFENDANTS
    AMEND
    MOTION
    COURT
    PALO ALTO
    SECOND AMENDED COMPLAINT
    DEFICIENCIES
    PLAINTIFFS
    CIR
    LITIG
    BURLINGTON COAT FACTORY
    COURT HEREBY DISMISSES
    PARTIES
    CONSOLIDATED CLASS ACTION
    SECOND CONSOLIDATED CLASS
    COMPANY STOCK
    RON WEISSMAN
    STEVE YOUNG
    TICEHURST
    JAMES
    BETTENCOURT
    ANTHONY
    SBONA
    VERITY
    ATTORNEYS
    PALO ALTO SQUARE
    WHEELER
    CLAY
    
     1  COOLEY GODWARD  LLP
           WILLIAM S. FREEMAN (82002)
     2  CLAY C. WHEELER (193870)
           Five Palo Alto Square
     3  3000 El Camino Real
           Palo Alto, CA 94306-21 55
     4  Telephone:  (650) 843-5000
           Facsimile:     (650) 857-0663
    
           Attorneys for Defendants
           VERITY, INC., GARY  J.  SBONA,  ANTHONY
           BETTENCOURT 111, JAMES E. TICEHURST,
           STEVE YOUNG, and RON  WEISSMAN
    
                                         UNITED  STATES  DISTRICT  COURT
     9
                                        NORTHERN  DISTRICT  OF  CALIFORNIA
    10
    
    11                                                      NO. C-99-5337 CRB
    12  In re VERITY, INC. SECURITIES                        [PROPOSED]  ORDER  GRANTING
           LITIGATION                                        DEFENDANTS'  MOTION
                                                                                        TO DISMISS
    13                                                       PLAINTIFFS'  SECOND  CONSOLIDATED
                                                             AMENDED
                                                                        CLASS ACTION COMPLAINT
    14  This Document Relates to:
                                                             Date:      December 22,2000
    15            ALL ACTIONS.                               Time:      1O:OO  a.m.
                                                             Judge:     Hox Charles R. Breyer
    16
                                                             Trial Date:  Not Yet Set
    17
    
    18
    
    19
    
    20
    
    21
    
    
    
    
    24
    
    25
    
    
    SNIPPETS:
  • CLAY C. WHEELER
  • Five Palo Alto Square
  • 3000 El Camino Real Palo Alto,
  • Attorneys for Defendants
  • VERITY, INC., GARY J. SBONA, ANTHONY BETTENCOURT 111, JAMES E. TICEHURST,
  • STEVE YOUNG, and RON WEISSMAN
  • Inc. company stock between December 1, 1999 and December 14, 1999.
  • Now before the Court
  • is Defendants' Motion to Dismiss the Second Consolidated Class Action Complaint.
  • carefully considering the papers submitted by the parties, and having had the benefit of oral
  • argument on December 22,2000, the Court hereby DISMISSES the Complaint for the following
  • Burlington Coat Factory Sec. Litig., 1 14 F.3d 141 0 (3d Cir.
  • Defendants' Motion to Dismiss is GRANTED.
  • 27 that plaintiffs would be able to correct the deficiencies in the Second Amended Complaint
  • given leave to amend once again, the Complaint is dismissed without leave to amend.

  • 5 . MOTION TO DISMISS AMENDED COMPLAINT

    EXTRACTED KEY WORDS
    ALLEGATION
    PLAINTIFFS
    SAC
    COURT
    ALLEGE
    FAC
    ANALYSTS
    REPORT
    PRIOR
    DISMISS
    DUTY
    ACT
    PREJUDICE
    DEFECTS
    REFORM
    BETTENCOURT
    GODWARD
    SBONA
    VERITY
    HOCHFELD
    COMPLAINT
    CURE
    MOTION
    SUPPORT
    PALO ALTO
    COMMUNICATION
    FAILS
    FACTS
    MISLEADING
    
                       1  COOLEY  GODWARD  LLP
                              WILLIAM S. FREEMAN (82002)
                       2  CLAY  C.  WHEELER (1 93870)
                              Five Palo Alto Square
                       3  3000 El Camino Real
                              Palo Alto, CA 94306-21 55
                       4  Telephone:  (650) 843-5000
                              Facsimile:        (650) 857-0663
                       5  Attorneys for Defendants
                       6  VERITY, INC., GARY J. SBONA,  ANTHONY
                              BETTENCOURT 111, JAMES E. TICEHURST,
                       7  STEVE  YOUNG, and RON  WEISSMAN
    
                       8                                     UNITED  STATES  DISTRICT  COURT
                       9                                   NORTHERN  DISTRICT  OF  CALIFORNIA
                    10
    
                    11                                                     NO.  C 99-5337 CRB
                    12  In  re VERITY, INC. SECURITIES                     NOTICE OF MOTION AND MOTION
                    13  LITIGATION                                         SECOND  CONSOLIDATED  AMENDED
                                                                                                       
                                                                           ACTION COMPLAINT;  SUPPORTING
                    14  This Document Relates to:                          MEMORANDUM
                                                                                             OF POINTS
                                                                           AND AUTHORITIES
                    15                  ALL ACTIONS.                       Date:        December 22,2000
                    16                                                     Time:        1O:OO  a.m.
                                                                           Judge:       Hon. Charles R.
                    17                                                     Trial Date:  Not Yet  Set
                    18
    
                    19
    
                   20
    
                   21
    
                   22
    
                   23
    
                   24
    
                   25
    
                   26
    
                   27
    
    
    SNIPPETS:
  • COOLEY GODWARD LLP
  • Five Palo Alto Square
  • Attorneys for Defendants
  • VERITY, INC., GARY J. SBONA, ANTHONY
  • BETTENCOURT 111, JAMES E. TICEHURST,
  • Litigation Reform Act, 15 U.S.C. 0 78u-4 et seq.
  • ALLEGATIONS OF THE FAC
  • Allegations relating to the December 7, 1999 Seidler report
  • No Duty to Update These Statements
  • 12 December 1 are now, in the SAC, alleged to have been made during "the several weeks
  • 4 At the same time, plaintiffs continue to recognize that the
  • 19 our memoranda in support of our motion to dismiss the FAC.
  • 21 substantive amendments to the FAC has failed to cure the defects noted by the Court.
  • 23 SAC should now be dismissed with prejudice.
  • No defendant sold any Verity stock during the alleged class period.
  • 17 analysts passed these statements to the market in the form of positive reports on Verity.
  • 13 complaint gave rise either to a "duty to correct" or a "duty to update" the prior
  • 15 correct could only apply if the alleged prior statements had been untrue or misleading
  • 21 could allege some extraordinary circumstances that would give rise to a duty to update
  • nowhere mentioned in the FAC, and in which Mr. Hochfeld attributes the statements not to the
  • the allegation that defendants made the statements on December 1.
  • 11 allegation fails as a matter of law because, as the Court has held, "[tlhe alleged
  • 23 communication by Young and Weissman.
  • The suggestion that unpled facts await discovery, however, adds nothing to the complaint.

  • 6 . MOTION TO DISMISS CONSOLIDATED COMPLAINT

    EXTRACTED KEY WORDS
    PLAINTIFFS
    COMPLAINT
    REPORT
    ANALYST
    ALLEGATION
    FACTS
    ALLEGE
    FAILS
    SECURITIES ANALYSTS
    CIR
    COMMUNICATION
    LITIG
    PROJECTIONS
    THIRD-PARTY
    FRAUD
    FORECASTS
    PARTICULARITY
    MANAGEMENT
    DEFENDANT PROVIDED INFORMATION
    FACTS SUGGESTING
    INVESTORS
    ALTO
    INDIVIDUAL DEFENDANTS
    GENERAL COUNSEL
    SILICON GRAPHICS
    LIABILITY
    INFERENCE
    FIRST WINTHROP
    CONTRADICT
    
    * I
    
    
                                          1  COOLEY GODWARD LLP
                                                  WILLIAM S. FREEMAN (82002)
                                         2  CLAY C. WHEELER (193870)
                                                  Five Palo Alto Square
                                         3  3000 El Camino Real
                                                  Palo Alto, CA 94306-2 155
                                         4  Telephone:  (650) 843-5000
                                                  Facsimile:     (650) 857-0663
                                         5  Attorneys for Defendants
                                         6  VERITY, INC., GARY J. SBONA, ANTHONY
                                                  BETTENCOURT 111, and JAMES E. TICEHURST
                                         7
                                         8                                      UNITED STATES DISTRICT
                                         9                                  NORTHERN DISTRICT OF
    
                                     10
                                     11                                                      NO. C
                                     12  In re  VERITY,  INC. SECURITIES                     NOTICE OF
                                                  LITIGATION                                
                                                                                                       
                                                                                                       
                                     13                                                      SUPPORTING
                                                                                                       
                                                  This Document Relates to:                  AND
                                     14                  ALL  ACTIONS.                       Date:     
                                     15                                                      Time:     
                                                                                             Judge:    
                                     16                                                      Trial
                                     17
    
                                     18
    
                                     19
    
                                     20
    
                                     21
    
                                     22
    
                                     23
    
                                     24
    
                                     25
    
    
    SNIPPETS:
  • P A L O ALTO
  • Complaint is fatally defective under any conceivable theory applicable to its allegations.
  • Plaintiffs provide none of the detail - the who,
  • when and to whom - required to allege that any defendant made a knowingly false statement
  • to a securities analyst with the intent that the statement be passed on to investors.
  • they have failed to set forth any specific facts suggesting that any defendant adopted a
  • 11 third-party analyst's report,
  • 12 allege that a defendant provided information to an analyst;
  • 13 way communication in which the analyst provided a forecast or projection to a defendant,
  • Where Facts Alleged are Contradicted by Judicially Noticed Matter
  • F.2d 1365 (9th Cir.
  • 27 In re Apple Computer Sec. Litig.
  • In re Health Management Systems,
  • In re Silicon Graphics Inc.
  • General Counsel of Assemblies of God
  • 13 which relief may be granted, and fails to allege fiaud with particularity.
  • 17 defendants' silence actionable; and plaintiffs have failed to allege facts giving rise to
  • 18 inference" that any defendant acted with the required state
  • 11 Plaintiffs seek to hold Verity and three of its officers liable for fraud because the
  • Plaintiffs make this allegation with respect to three
  • 21 plaintiffs' allegations directly contradict the report itself in other important respects.
  • 15 projections, after "extensive conversations with the Individual Defendants" and after
  • either theory of liability.
  • 15 plaintiffs appear to base their claim on statements allegedly made to individual
  • the complaint must identify specific forecasts and name
  • 27 "Verity insiders leaked Verity's dramatic revenue shortfall to favored investors".
  • First Winthrop Corp., 776 F. Supp.

  • 7 . RE-NOTICE OF MOTION TO CONSOLIDATE

    EXTRACTED KEY WORDS
    DECLARE
    MOTION
    EXCHANGE
    SECURITIES
    CALIFORNIA
    ACT
    PLAINTIFF
    STICKNEY
    VERITY
    CONSOLIDATING
    THEREOF
    UNITED STATES
    RELATED ACTIONS
    RE-NOTICE
    VIOLATIONS
    COURT
    FLOOR
    PARTIES
    LIFSHITZ
    DAVID
    LLP
    LERACH
    MOVANTS
    THEREON FULLY PREPAID
    SEALED ENVELOPE
    UNITED STATES MAILBOX
    DEPOSITING
    PINE STREET
    BUSINESS
    
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    WILLIAM S. LERACH (68581)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
        - and -
    PATRICK J. COUGHLIN (111070)
    DAVID R. STICKNEY (188574)
    100 Pine Street, Suite 2600
    San Francisco, CA 94111
    Telephone: 415/288-4545
    BERNSTEIN LIEBHARD & LIFSHITZ, LLP
    MEL E. LIFSHITZ
    10 East 40th Street
    New York, NY 10016
    Telephone: 212/779-1414
    
    Attorneys for Plaintiff
    
    
    
                                       UNITED STATES DISTRICT COURT
    
                                    NORTHERN DISTRICT OF CALIFORNIA
    
    
    SARAH LERNER, On Behalf of Herself             )  No. C-99-5337-CRB
    and All Others Similarly Situated,             )  CLASS ACTION
                            Plaintiff,             ) )  RE-NOTICE OF MOTION TO
        vs.                                        ) )  CONSOLIDATE RELATED
                                                   )
    VERITY, INC., et al.,                                ACTIONS AGAINST VERITY, INC.
                                                   )
                                                         FOR VIOLATIONS OF THE
                                                   )
                            Defendants.                  SECURITIES EXCHANGE
                                                   )
    _________________________________ ) ACT OF 1934
                                                         DATE: April 7, 2000
                                                         TIME: 10:00 a.m.
                                                         COURTROOM: The Honorable
                                                                                    Charles R. Breyer
    
    TO: ALL PARTIES AND THEIR COUNSEL OF RECORD
    
    SNIPPETS:
  • MILBERG WEISS BERSHAD HYNES & LERACH LLP WILLIAM S. LERACH
  • BERNSTEIN LIEBHARD & LIFSHITZ, LLP MEL E. LIFSHITZ
  • Attorneys for Plaintiff
  • ACT OF 1934
  • ALL PARTIES AND THEIR COUNSEL OF RECORD
  • PLEASE TAKE NOTICE that on April 7, 2000, at 10:00 a.m., or as soon thereafter as the matter
  • Each alleges claims for violations of §10of the Securities Exchange Act of 1934, 15 U.S.C.
  • Consolidating the three cases, therefore, will promote their efficient resolution.
  • This motion is based upon this re-notice of motion, the supporting memorandum of points and
  • that was filed and served on February 18, 2000, the complete files and records in the three
  • That declarant is and was, at all times herein mentioned, a citizen of the United States and
  • CONSOLIDATE RELATED ACTIONS AGAINST VERITY,
  • OF THE SECURITIES EXCHANGE ACT OF 1934 by depositing a true copy thereof in a United States
  • I declare under penalty of perjury that the foregoing is true and correct.
  • Movants consist of a group of over 80 investors who purchased or otherwise acquired Verity,
  • B attached to the Declaration of David R. Stickney, filed on February 18, 2000.

  • 8 . RE-NOTICE OF MOTION TO APPOINT

    EXTRACTED KEY WORDS
    SAN FRANCISCO
    LEAD PLAINTIFF GROUP
    LERNER LEAD PLAINTIFF
    SECURITIES
    DECLARE
    SECURITIES EXCHANGE ACT
    STICKNEY
    MOTION
    COUNSEL
    MOVANTS
    CALIFORNIA
    APPOINTMENT
    UNITED STATES
    PURSUANT
    STICKNEY DECL
    AUTHORITIES
    RE-NOTICE
    CLASS MEMBERS
    LOSSES
    ADEQUATE
    SELECTION
    APPROVE
    SPEED LIMIT
    ALI MADANY
    EUGENE ACCARDI
    ANDREW XIANG
    KIM FITCH
    COURT
    FLOOR
    
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    WILLIAM S. LERACH (68581)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
        - and -
    PATRICK J. COUGHLIN (111070)
    DAVID R. STICKNEY (188574)
    100 Pine Street, Suite 2600
    San Francisco, CA 94111
    Telephone: 415/288-4545
    BERNSTEIN LIEBHARD & LIFSHITZ, LLP
    MEL E. LIFSHITZ
    10 East 40th Street
    New York, NY 10016
    Telephone: 212/779-1414
    
    Attorneys for Plaintiff
    
    
    
                                       UNITED STATES DISTRICT COURT
    
                                    NORTHERN DISTRICT OF CALIFORNIA
    
    
    SARAH LERNER, On Behalf of Herself             )  No. C-99-5337-CRB
    and All Others Similarly Situated,             )  CLASS ACTION
                            Plaintiff,             )
                                                   )  RE-NOTICE OF MOTION TO
        vs.                                        )
                                                   )  APPOINT THE LERNER LEAD
                                                          PLAINTIFF GROUP AS LEAD
    VERITY, INC., et al.,                          )
                                                   )  PLAINTIFF PURSUANT TO
                                                   )
                            Defendants.                   SECTION 21D(a)(3)(B) OF THE
                                                   )
    _________________________________  )  SECURITIES EXCHANGE ACT
                                                          OF 1934 AND TO APPROVE
                                                          LEAD PLAINTIFF'S CHOICE
                                                          OF COUNSEL
    
                                                          DATE: April 7, 2000
    
    SNIPPETS:
  • San Francisco, CA 94111 Telephone:
  • SECURITIES EXCHANGE ACT
  • ALL PARTIES AND THEIR COUNSEL OF RECORD
  • PLEASE TAKE NOTICE that on April 7, 2000, at 10:00 a.m., or as soon thereafter as this matter in this action and to approve their selection of counsel.
  • This motion is made on the grounds that the Lerner Lead Plaintiff Group is the most adequate
  • The motion is based on this re-notice of motion, the supporting memorandum of points and
  • that was filed and served on February 18, 2000, the pleadings and other files herein and such
  • That declarant is and was, at all times herein mentioned, a citizen of the United States and
  • PURSUANT TO SECTION 21DOF THE SECURITIES EXCHANGE ACT
  • OF 1934 AND TO APPROVE LEAD PLAINTIFF'S CHOICE OF COUNSEL by depositing a true copy thereof
  • I declare under penalty of perjury that the foregoing is true and correct.
  • Movants are Kim Fitch, Andrew Xiang, Eugene Accardi, Ali Madany, No Speed Limit and 83 others
  • Movants have submitted the signed certifications required by §21D-of the Private Securities
  • The PSLRA specifically authorizes class members, regardless of whether they have filed a

  • 9 . MOTION AND MEMO IN SUPPORT OF MOTION TO CONSOLIDATE

    EXTRACTED KEY WORDS
    MOTION
    COURT
    LERNER
    LEAD PLAINTIFF
    SECURITIES
    XIANG
    RHODES
    DEFENDANTS
    EXCHANGE ACT
    RELATED ACTIONS
    CLASS PERIOD
    MOVANTS
    SAN FRANCISCO
    VERITY
    PURSUANT
    PENDING
    PRICES
    ALLEGES
    PRIOR
    PSLRA
    DECLARE
    INVESTORS
    VIOLATIONS
    CALIFORNIA
    PRESERVATION
    APPOINTMENT
    DETERMINATION
    PURPOSES
    STICKNEY
    
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    WILLIAM S. LERACH (68581)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
        - and -
    PATRICK J. COUGHLIN (111070)
    DAVID R. STICKNEY (188574)
    100 Pine Street, Suite 2600
    San Francisco, CA 94111
    Telephone: 415/288-4545
    BERNSTEIN LIEBHARD & LIFSHITZ, LLP
    MEL E. LIFSHITZ
    10 East 40th Street
    New York, NY 10016
    Telephone: 212/779-1414
    
    Attorneys for Plaintiff
    
    
    
                                             UNITED STATES DISTRICT COURT
    
                                            NORTHERN DISTRICT OF CALIFORNIA
    
    
    SARAH LERNER, On Behalf of Herself and                  )  No. C-99-5337-MEJ
    All Others Similarly Situated,                          )
                                                            )  CLASS ACTION
                            Plaintiff,                      )  NOTICE OF MOTION, MOTION AND
        vs.                                                 ) ) MEMORANDUM OF POINTS AND
    VERITY, INC., et al.,                                   )  AUTHORITIES IN SUPPORT OF
                                                            )  MOTION
                                                            )
                            Defendants.                           TO CONSOLIDATE RELATED
                                                            )
    ____________________________________ ) ACTIONS
                                                                  AGAINST VERITY, INC. FOR
                                                                  VIOLATIONS
                                                                  OF THE SECURITIES EXCHANGE
                                                                  ACT OF 1934
    
                                                                  DATE: March 30, 2000
    
    
    SNIPPETS:
  • Summary of Pending Actions
  • This Court Should Consolidate These Related Actions for Purposes of Efficiency
  • The PSLRA Requires that the Question of Consolidation Be Decided Prior to the Determination
  • This Court Should Order the Preservation of Documents
  • 450 Golden Gate Avenue, 15th Floor, San Francisco, California 94102, Movantswill, and hereby
  • Andrew Xiang This motion is brought on the grounds that these three actions are substantially
  • Each alleges claims for violations of §10of the Securities Exchange Act of 1934,
  • This motion is based upon this notice of motion, the memorandum of points and authorities in
  • Movants seek to consolidate the Lerner, Rhodes and Xiang actions pursuant to Fed.
  • Because each action asserts the same claims and raises substantially the same questions of
  • These related class actions allege a common course of conduct by the same defendants in
  • Each action alleges that the defendants issued false and misleading statements during the
  • Verity sells knowledge retrieval software products to manage text-based information residing
  • Given that the selection of lead plaintiff and lead counsel is the necessary first step to
  • I declare under penalty of perjury that the foregoing is true and correct.

  • 10 . MOTION AND MEMO IN SUPPORT OF MOTION TO APPOINT

    EXTRACTED KEY WORDS
    LEAD PLAINTIFF GROUP
    LERNER LEAD PLAINTIFF
    COURT
    STICKNEY
    APPOINTED LEAD PLAINTIFF
    CLASS MEMBERS
    LEAD PLAINTIFF PURSUANT
    SAN FRANCISCO
    SECURITIES
    CLASS ACTIONS
    APPROVE
    RELIEF
    MOTION
    EXCHANGE ACT
    DEFENDANTS
    LERACH LLP
    VERITY SECURITIES
    CLASS PERIOD
    APPOINTMENT
    STICKNEY DECL
    ALLEGATIONS
    PROCEDURAL BACKGROUND
    BERNSTEIN LIEBHARD
    MILBERG WEISS BERSHAD
    PROPOSED CLASS
    PSLRA
    MISLEADING STATEMENTS
    APPOINT LEAD PLAINTIFFS
    PURPORTED CLASS
    
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    WILLIAM S. LERACH (68581)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
        - and -
    PATRICK J. COUGHLIN (111070)
    DAVID R. STICKNEY (188574)
    100 Pine Street, Suite 2600
    San Francisco, CA 94111
    Telephone: 415/288-4545
    BERNSTEIN LIEBHARD & LIFSHITZ, LLP
    MEL E. LIFSHITZ
    10 East 40th Street
    New York, NY 10016
    Telephone: 212/779-1414
    
    Attorneys for Plaintiff
    
    
    
                                       UNITED STATES DISTRICT COURT
    
                                    NORTHERN DISTRICT OF CALIFORNIA
    
    
    SARAH LERNER, On Behalf of Herself and            )  No. C-99-5337-MEJ
    All Others Similarly Situated,                    )  CLASS ACTION
                            Plaintiff,                ) ) NOTICE OF MOTION, MOTION
        vs.                                           ) ) AND MEMORANDUM OF POINTS
                                                      )
    VERITY, INC., et al.,                                   AND AUTHORITIES IN SUPPORT
                                                      )
                                                            OF MOTION TO APPOINT THE
                                                      )
                            Defendants.                     LERNER LEAD PLAINTIFF GROUP
                                                      )
    ____________________________________ ) AS LEAD PLAINTIFF PURSUANT
                                                            TO SECTION 21D(a)(3)(B) OF THE
                                                            SECURITIES EXCHANGE ACT OF
                                                            1934 AND TO APPROVE LEAD
                                                            PLAINTIFF'S CHOICE OF COUNSEL
    
                                                            DATE: March 30, 2000
    
    SNIPPETS:
  • San Francisco, CA 94111 Telephone:
  • PROCEDURAL BACKGROUND
  • SUMMARY OF ALLEGATIONS
  • The Lerner Lead Plaintiff Group Should Be Appointed Lead Plaintiff
  • The Lerner Lead Plaintiff Group Believes It Has the Largest
  • Financial Interest in the Relief Sought by the Class
  • Interests of the Class B. This Court Should Approve the Lerner Lead Plaintiff Group's Choice
  • This motion is made on the grounds that the Lerner Lead Plaintiff Group is the most adequate
  • selected and retained national law firms with substantial experience in prosecuting
  • The motion is based on this notice of motion, the memorandum of points and authorities in
  • Movants, who collectively suffered at least $820,674 in losses from purchases of Verity
  • Movants proffer the Lerner Lead Plaintiff Group, which consists of a group of five class
  • Section 21D of the Exchange Act, as amended by the PSLRA, sets forth the procedure for the
  • any member of the purported class may
  • Further, §21Dof the Exchange Act directs this Court to consider any motions brought by serve as lead plaintiff and shall presume that plaintiff is the person, or group of persons, that:
  • The members of the Lerner Lead Plaintiff Group collectively have suffered losses of at least
  • The Exchange Act, as amended by the PSLRA, requires prompt publication of notice advising
  • But contrary to the company's past practice of pre-announcing a shortfall to warn investors,
  • Now, investors who purchased Verity securities between December 1 and December 14, 1999,
  • the Lerner Lead Plaintiff Group satisfies the requirements of Rule 23 and all of the PSLRA's
  • Here, the Lerner Lead Plaintiff Group has selected the law firms of Milberg Weiss Bershad

  • 11 . DECLARATION OF DAVID R STICKNEY IN SUPPORT OF MOTION TO CONSOLIDATE

    EXTRACTED KEY WORDS
    EXHIBIT
    DECLARE
    APPOINT
    MOTION
    SAN FRANCISCO
    CALIFORNIA
    LEAD COUNSEL
    LERACH LLP
    STICKNEY
    DAVID
    LEAD PLAINTIFF PURSUANT
    SECURITIES EXCHANGE ACT
    LERNER LEAD PLAINTIFF
    LIFSHITZ
    WEISS BERSHAD HYNES
    MILBERG WEISS BERSHAD
    FOREGOING
    PERJURY
    PENALTY
    ORDER GRANTING PLAINTIFFS
    LITIG
    BUSINESS
    LEAD PLAINTIFF GROUP
    VERITY
    RELATED ACTIONS
    CONSOLIDATE
    SUPPORT
    LAW
    ATTORNEYS
    
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    WILLIAM S. LERACH (68581)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
        - and -
    PATRICK J. COUGHLIN (111070)
    DAVID R. STICKNEY (188574)
    100 Pine Street, Suite 2600
    San Francisco, CA 94111
    Telephone: 415/288-4545
    BERNSTEIN LIEBHARD & LIFSHITZ, LLP
    MEL E. LIFSHITZ
    10 East 40th Street
    New York, NY 10016
    Telephone: 212/779-1414
    
    Attorneys for Plaintiff
    
    
    
                                       UNITED STATES DISTRICT COURT
    
                                    NORTHERN DISTRICT OF CALIFORNIA
    
    
    SARAH LERNER, On Behalf of Herself and            )  No. C-99-5337-MEJ
    All Others Similarly Situated,                    )  CLASS ACTION
                            Plaintiff,                ) ) DECLARATION OF DAVID R.
        vs.                                           ) ) STICKNEY IN SUPPORT OF
                                                            PLAINTIFF'S MOTION TO
    VERITY, INC., et al.,                             ) ) CONSOLIDATE RELATED ACTIONS
                                                      )
                            Defendants.                     AGAINST VERITY, INC. AND
                                                      )
    ____________________________________ ) MOTION TO APPOINT THE LERNER
                                                            LEAD PLAINTIFF GROUP AS
                                                            LEAD PLAINTIFF
    
                                                            DATE: March 30, 2000
                                                            TIME: 10:00 a.m.
                                                            COURTROOM: B (The Honorable
    
    
    
    SNIPPETS:
  • BERNSTEIN LIEBHARD & LIFSHITZ, LLP MEL E. LIFSHITZ
  • Attorneys for Plaintiff
  • MOTION TO APPOINT THE LERNER
  • I, David R. Stickney, declare as follows:
  • I am an associate at the law firm of Milberg Weiss Bershad Hynes & Lerach LLP, one of the
  • I make this Declaration in support of Plaintiff's Motions to Consolidate Related Actions
  • Exhibit B: Plaintiffs' Certifications;
  • December 23, 1999 Business Wire notice;
  • Sec. Litig., No. C 96-2644-SBA, Order re Appointment of Lead Plaintiff and Lead Counsel
  • Order Granting Plaintiffs' Motion to be Appointed Lead Plaintiffs Pursuant to §21Dof the
  • I declare under penalty of perjury under the laws of the State of California that the
  • Executed this 18th day of February, 2000, at San Francisco, California.

  • 12 . COMPLAINT 2

    EXTRACTED KEY WORDS
    PLAINTIFFS
    ACT
    SOFTWARE PRODUCTS
    DEFENDANTS
    CLASS ACTION
    REVENUE
    SHORTFALL
    STOCK PRICE
    OFFICERS
    CUSTOMERS
    SECURITIES
    F00
    MARKET
    MAKING CORPORATE
    CORPORATE INTRANETS
    SAN FRANCISCO
    E-COMMERCE PROVIDERS
    KNOWLEDGE RETRIEVAL SOFTWARE
    MANAGEMENT
    INDIVIDUAL DEFENDANTS
    INDEPENDENT SOFTWARE VENDORS
    BETTENCOURT
    INFORMATION RESIDING
    ONLINE PUBLISHERS
    EXTRANETS
    VIOLATION
    EXCHANGE ACT
    MATERIAL FACTS
    MISLEADING
    
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    WILLIAM S. LERACH (68581)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
        - and -
    PATRICK J. COUGHLIN (111070)
    KIMBERLY C. EPSTEIN (169012)
    100 Pine Street, Suite 2600
    San Francisco, CA 94111
    Telephone: 415/288-4545
    BERNSTEIN LIEBHARD & LIFSHITZ, LLP
    MEL E. LIFSHITZ
    10 East 40th Street
    New York, NY 10016
    Telephone: 212/779-1414
    
    Co-Lead Counsel for Plaintiffs
    
    
                                     UNITED STATES DISTRICT COURT
    
                                 NORTHERN DISTRICT OF CALIFORNIA
    
    
    In re VERITY, INC. SECURITIES                )  Master File No. C-99-5337-CRB
    LITIGATION                                   )
    _________________________________            )  CLASS ACTION
    This Document Relates To:                    ) )  SECOND CONSOLIDATED
                                                       AMENDED COMPLAINT FOR
    ALL ACTIONS.                                 ) )  VIOLATION OF THE SECURITIES
    _________________________________ ) EXCHANGE ACT OF 1934
                                                       DEMAND FOR JURY TRIAL
    
    
    
                                       SUMMARY AND OVERVIEW
    
    1. This is a securities fraud class action on behalf of all purchasers of the securities of
    Verity, Inc. ("Verity" or the "Company") between December 1, 1999 and December 14,
    1999 (the "Class Period"), against Verity and certain of its officers and directors for
    violations of the Securities Exchange Act of 1934 (the "1934 Act").
    
    
    
    SNIPPETS:
  • Co-Lead Counsel for Plaintiffs
  • EXCHANGE ACT OF 1934
  • This is a securities fraud class action on behalf of all purchasers of the securities of
  • Verity develops, markets, and supports knowledge retrieval software products for corporate
  • The Company's products manage text-based information residing on its customers' networks,
  • During October and November 1999, Verity saw its stock price soar from around $30 per shareto
  • The individual defendants knew that disclosure of this shortfall in 2ndQ F00 revenues and
  • On the contrary, Verity management confirmed with market participants up to and through
  • Then, after the markets closed, Verity announced a devastating revenue and earnings
  • Defendant Anthony Bettencourt III is President of Verity.
  • Because of their positions and access to material non-public information available to them
  • During the Class Period, defendants disseminated or approved the false statements specified
  • Plaintiffs bring this action as a class action pursuant to Rule 23 of the Federal Rules of
  • That declarant is and was, at all times herein mentioned, a citizen of the United States and
  • AMENDED COMPLAINT FOR VIOLATION OF THE SECURITIES EXCHANGE

  • 13 . COMPLAINT 1

    EXTRACTED KEY WORDS
    PLAINTIFFS
    ACT
    SOFTWARE PRODUCTS
    CLASS ACTION
    DEFENDANTS
    REVENUE
    SHORTFALL
    STOCK PRICE
    CUSTOMERS
    OFFICERS
    SECURITIES
    MAKING CORPORATE
    CORPORATE INTRANETS
    SAN FRANCISCO
    MARKET
    KNOWLEDGE RETRIEVAL SOFTWARE
    INDEPENDENT SOFTWARE VENDORS
    E-COMMERCE PROVIDERS
    MANAGEMENT
    INFORMATION RESIDING
    EQUIPMENT MANUFACTURERS
    ONLINE PUBLISHERS
    EXTRANETS
    VIOLATION
    EXCHANGE ACT
    MATERIAL FACTS
    INDIVIDUAL DEFENDANTS
    DEFENDANTS SBONA
    MISLEADING
    
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    WILLIAM S. LERACH (68581)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
        - and -
    PATRICK J. COUGHLIN (111070)
    DAVID R. STICKNEY (188574)
    100 Pine Street, Suite 2600
    San Francisco, CA 94111
    Telephone: 415/288-4545
    BERNSTEIN LIEBHARD & LIFSHITZ, LLP
    MEL E. LIFSHITZ
    10 East 40th Street
    New York, NY 10016
    Telephone: 212/779-1414
    
    Co-Lead Counsel for Plaintiffs
    
    
    
                                     UNITED STATES DISTRICT COURT
    
                                 NORTHERN DISTRICT OF CALIFORNIA
    
    
    In re VERITY, INC. SECURITIES                )  Master File No. C-99-5337-CRB
    LITIGATION                                   )
    _________________________________            )  CLASS ACTION
    This Document Relates To:                    ) )  [CORRECTED] CONSOLIDATED
                                                       AMENDED COMPLAINT FOR
    ALL ACTIONS.                                 ) )  VIOLATION OF THE SECURITIES
    _________________________________ ) EXCHANGE ACT OF 1934
                                                       DEMAND FOR JURY TRIAL
    
                                       SUMMARY AND OVERVIEW
    
    1. This is a securities fraud class action on behalf of all purchasers of the securities of
    Verity, Inc. ("Verity" or the "Company") between December 1, 1999 and December 14,
    1999 (the "Class Period"), against Verity and certain of its officers and directors for
    violations of the Securities Exchange Act of 1934 (the "1934 Act").
    
    2. Verity develops, markets, and supports knowledge retrieval software products for
    corporate intranets and extranets, online publishers, e-commerce providers, original
    
    SNIPPETS:
  • Co-Lead Counsel for Plaintiffs
  • EXCHANGE ACT OF 1934
  • This is a securities fraud class action on behalf of all purchasers of the securities of
  • The Company's products manage text-based information residing on its customers' networks,
  • During October and November 1999, Verity saw its stock price soar from around $30 per shareto
  • The Individual Defendantsknew that disclosure of this shortfall in 2ndQ F00 revenues and
  • On the contrary, Verity management confirmed with market participants on December 1, 1999
  • On December 14, 1999, Verity's stock price dropped more than $5 per share on heavy volume of
  • Then, after the markets closed, Verity announced a devastating revenue and earnings
  • Defendant Verity develops, markets, and supports knowledge retrieval software products for
  • The individuals named as defendants in ¶11-are referred to herein as the "Individual
  • Because of their positions and access to material non-public information available to them
  • With this knowledge, defendants Sbona, Bettencourt and Ticehurst met and decided not to
  • During the Class Period, defendants disseminated or approved the false statements specified
  • For Violation of §20of the 1934 Act
  • Plaintiffs bring this action as a class action pursuant to Rule 23 of the Federal Rules of
  • That declarant is and was, at all times herein mentioned, a citizen of the United States and
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