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



Keywords & Phrases
CaseNo: VICAL180432, CourtName: CLASS ACTION II, State: CA California, UniqueCaseRef: LCD>VICAL180432, Versata, Lead Plaintiff, Class Period, Revenue, Publicly Traded Securities, Customers, Securities, Lead Plaintiff Group, Lerner Lead Plaintiff, Hewitt, Officer, Act, Class Action, Common Stock, Software License Revenue, E-business, Financial Statements, Applications, Sales, Misleading, Market, Stickney, Management, Damages, San Francisco, Enables, Schubert, Misrepresentations, Appointed Lead Plaintiff, Customer Support, Professional Services, Exchange Act, Individual Defendants, Business Rules , ContentID: 120251981

Case Documents
1   COMPLAINT B 2
[ see first page and extracted highlights below  ] ItemID: 126488
23 pages
PDF
2 2001-07-27 DECLARATION OF ROBERT C SCHUBERT
[ see first page and extracted highlights below  ] ItemID: 126489
16 pages
PDF
3 2000-04-24 COMPLAINT A
[ see first page and extracted highlights below  ] ItemID: 126486
18 pages
PDF
4 2000-03-30 MOTION AND MEMO IN SUPPORT OF MOTION TO APPOINT
[ see first page and extracted highlights below  ] ItemID: 126490
11 pages
PDF
5 2000-03-02 COMPLAINT B
[ see first page and extracted highlights below  ] ItemID: 126487
24 pages
PDF
Total Documents: 5 documents , 92 pages
Price: $ 39.95


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1 . COMPLAINT B 2

EXTRACTED KEY WORDS
PUBLICLY TRADED SECURITIES
REVENUE
PLAINTIFF
OFFICER
ACT
CUSTOMERS
CLASS ACTION
DEFENDANTS
HEWITT
APPLICATIONS
SOFTWARE LICENSE REVENUE
SALES
BUSINESS
GROWTH
MARKET
E-BUSINESS AUTOMATION SYSTEM
MANAGEMENT
CUSTOMER SUPPORT
PROFESSIONAL SERVICES
INDIVIDUAL DEFENDANTS
BUSINESS RULES
CONNECTION
MISLEADING
AUTOMATING E-BUSINESS CHANGE
INTERNET INFRASTRUCTURE
TRANSACTIONS
ACCOUNTING
REVENUE RECOGNITION
AUTOMATIC GENERATION



MILBERG WEISS BERSHAD
HYNES & LERACH LLP
PATRICK J. COUGHLIN (111070)
JEFFREY W. LAWRENCE (166806)
JASON T. BAKER (212380)
100 Pine Street, Suite 2600
San Francisco, CA 94111
Telephone: 415/288-4545
415/288-4534 (fax)
    - and -
WILLIAM S. LERACH (68581)
600 West Broadway, Suite 1800
San Diego, CA 92101
Telephone: 619/231-1058
619/231-7423 (fax)
LAW OFFICES OF MARC S. HENZEL
MARC S. HENZEL
210 West Washington Square
Third Floor
Philadelphia, PA 19106-3503
Telephone: 215/625-9999
215/440-9475 (fax)

Attorneys for Plaintiff




                                   UNITED STATES DISTRICT COURT

                                NORTHERN DISTRICT OF CALIFORNIA


CARL COTTERILL, On Behalf of Himself              )  No. C-01-1731-BZ
and All Others Similarly Situated,                )  CLASS ACTION
                        Plaintiff,                ) )  COMPLAINT FOR VIOLATION
    vs.                                           ) )  OF THE FEDERAL SECURITIES
                                                  )  LAWS
VERSATA, INC., JOHN A. HEWITT, JR.   )
and KEVIN FERRELL,                                )
                                                  )
                        Defendants.               )
____________________________________ ) DEMAND FOR JURY TRIAL

                                        SUMMARY AND OVERVIEW
SNIPPETS:
  • VERSATA, INC., JOHN A. HEWITT, JR.
  • This is a securities fraud class action on behalf of all purchasers of the publicly traded
  • Versata provides a comprehensive suite of software and services that enable its customers to
  • From its incorporation in August 1991 through December 1994, it has been a professional
  • The company is conducting an inquiry into certain transactions from 2000 that may not have
  • Plaintiff Carl Cotterill purchased Versata publicly traded securities as described in the
  • Its E-Business Automation System utilizes a unique business rules automation technology that
  • Defendant Kevin Ferrell was Chief Financial Officer of the Company until his resignation in
  • The individuals named as defendants in ¶11-are referred to herein as the "Individual
  • Each defendant was provided with copies of the Company's reports and press releases alleged
  • many of the internal reports showing Versata's forecasted and actual growth were prepared by
  • Software license revenue also includes product maintenance, which provides the customer with
  • Customers typically purchase these professional services from us to enlist our support in
  • Professional services are sold generally on time-and-materials basis, while customer support
  • Because the accounting for these items was the most important factor in the presentation of
  • The report, by Rehan Syed, was based on Syed's conversations with management and stated:
  • Versata enables the above objectives with an industrial-strength environment which allows
  • The IPO priced at $24 and the stock now trades at $75 which represents 76x 2000 and 39x 2001
  • We recently initiated coverage with a Buy rating on recently-IPOed Versata Software, a
  • Engaged in acts, practices, and a course of business that operated as a fraud or deceit upon
  • CLASS ACTION ALLEGATIONS

  • 2 . DECLARATION OF ROBERT C SCHUBERT

    EXTRACTED KEY WORDS
    DISTRICT
    SCHUBERT
    REED LLP
    LAW
    COUNSEL
    VERSATA
    DAMAGES
    CALIFORNIA
    BOUGHT
    DAMAGE CALCULATION
    LITIGATION
    TRADING PRICE
    SAN FRANCISCO
    LEAD COUNSEL
    COURT
    SHARES
    PURCHASES
    EXHIBIT
    FIRM
    KEVIN
    JACK HEWITT
    PLAINTIFF
    NORTHERN DISTRICT
    UNITED STATES
    FINANCE
    SETTLEMENT
    SHAREHOLDERS
    CO-LEAD COUNSEL
    STOCK
    
    ROBERT C. SCHUBERT S.B.N. 62684
    JUDEN JUSTICE REED S.B.N. 153748
    WILLEM F. JONCKHEER S.B.N. 178748
    SCHUBERT & REED LLP
    Two Embarcadero Center, Suite 1050
    San Francisco, California  94111
    Telephone: (415) 788-4220
     MARC C. KRANTZ
    KOHRMAN JACKSON & KRANTZ P.L.L.
    One Cleveland Center, 20th Floor
    1375 East Ninth Street
    Cleveland OH 44114
    Telephone: (216) 696-8700
     Counsel for Proposed Lead Plaintiff
    Kenneth A. Lanci
    
                                          UNITED STATES DISTRICT COURT
                                       NORTHERN DISTRICT OF CALIFORNIA
    
          MICHAEL NANCE, Individually and on                   No. C-01-1439 SI
          Behalf of All Others Similarly Situated,
    
                                  Plaintiff,                   DECLARATION OF ROBERT C.
                                                               SCHUBERT IN SUPPORT OF MOTION TO
          v.                                                   APPOINT KENNETH A. LANCI AS LEAD
                                                               PLAINTIFF PURSUANT TO SECTION
          VERSATA, INC.; JACK HEWITT JR; KEVIN  21D(a)(3)(B) OF THE SECURITIES
          FERRELL; PETER HARRISON; MICHAEL                     EXCHANGE ACT OF 1934 AND TO
          DEVRIES; and NAREN BAKSHI,                           APPROVE  LEAD PLAINTIFF'S CHOICE
                                                               OF COUNSEL
                                  Defendants.
                                                               Date: July 27, 2001
                                                               Time:  9:00 a.m.
                                                                Hon. Susan Illston
    
          DAVE PERNOT and MARK ENNIS,                          No. C-01-1559-MEJ
          Individually and on Behalf of All Others
          Similarly Situated,
                                  Plaintiff,
           v.  VERSATA, INC.; JACK HEWITT JR; and
          KEVIN FERRELL,
                                  Defendants.
           JAMES W. DYAL Individually and on Behalf   No. C-01-1703 SI
          of All Others Similarly Situated,
                                  Plaintiff,
           v.
    
    
    
    
    SNIPPETS:
  • California 94111 Telephone:
  • 696-8700 Counsel for Proposed Lead Plaintiff
  • VERSATA, INC.; JACK HEWITT JR; KEVIN 21DOF THE SECURITIES
  • I am a partner in the law firm of Schubert & Reed LLP,
  • Attached hereto as Exhibit A is a "Versata, Inc. Securities Class Action Section
  • 21DDamage Calculation" for Mr. Lanci.
  • The Damage Calculation calculates estimated class damages for Mr. Lanci as measured by
  • based on information my firm retrieved from the Microsoft Money Central
  • Based on trades in Versata common stock during the period from April
  • For purchases and sales within the Class Period, damages are calculated as market loss.
  • For shares purchased during the Class Period and still held at the conclusion of the period,
  • Trading Price" specified in Section 21Dof the Act.
  • Attached hereto as Exhibit B is a true and correct copy of an April 11,
  • that date in the United States District Court for the District of Northern California against
  • proposed Lead Counsel for the class.
  • Executed in San Francisco, California this 11th day of June, 2001.
  • 11/21/2000 Bought 1000 $8.38 $8,455.00
  • SAN FRANCISCO, April 11, 2001 /Business Wire/ -- A class action suit alleging securities
  • Schubert & Reed has been Lead Counsel or Co-Lead Counsel in class actions and shareholder
  • In Re Savings Investment Service Corporation Loan Commitment Litigation, MDL 718.
  • Co-Lead Counsel in securities class action arising from default of $9.85 million issue of
  • Co-Lead Counsel in shareholders' derivative action resulting from accounting fraud and
  • A settlement of $5.0 million was obtained for the company.

  • 3 . COMPLAINT A

    EXTRACTED KEY WORDS
    VERSATA
    CLASS PERIOD
    PLAINTIFFS
    SECURITIES
    COMMON STOCK
    FINANCIAL STATEMENTS
    REVENUE
    HEWITT
    MISREPRESENTATIONS
    FEDERAL SECURITIES LAWS
    MARKET
    VIOLATION
    DAMAGES
    MEMBERS
    TRUTH
    MICHAEL DEVRIES
    MISLEADING
    SOFTWARE LICENSE REVENUE
    PLAINTIFF MICHAEL NANCE
    INTERIM FINANCIAL INFORMATION
    EXCHANGE ACT
    CALIFORNIA
    SCHUBERT
    RELEVANT TIMES
    MATERIAL FACTS
    MATERIALLY FALSE
    NORMAL RECURRING ADJUSTMENTS
    REPRESENTATIONS
    MANAGEMENT
    
    
    
    
    ROBERT C. SCHUBERT S.B.N. 62684
    JUDEN JUSTICE REED S.B.N. 153748
    WILLEM F. JONCKHEER S.B.N. 178748
    SCHUBERT & REED LLP
    Two Embarcadero Center, Suite 1050
    San Francisco, California 94111
    Telephone: (415) 788-4220
    
    
    Attorneys for Plaintiff Michael Nance, Individually and
    On Behalf of All Those Similarly Situated
    
                                    UNITED STATES DISTRICT COURT
    
                               NORTHERN DISTRICT OF CALIFORNIA
    
                                            OAKLAND DIVISION
    
    
    
    MICHAEL NANCE, Individually and on Behalf of All            No. C 01 1439 BZ ADR
    Others Similarly Situated,
    Plaintiff,
                                                                CLASS ACTION COMPLAINT FOR
    v.                                                          VIOLATION OF THE FEDERAL
                                                                SECURITIES LAWS
    VERSATA, INC.; JACK HEWITT JR;
    KEVIN FERRELL; PETER HARRISON;                              JURY TRIAL DEMANDED
    MICHAEL DEVRIES; and NAREN
    BAKSHI,
    
    Defendants.
    
    Plaintiff, individually and on behalf of all others similarly situated, by his undersigned
    attorneys, alleges as follows:
    
                                          NATURE OF ACTION
    
    1.    This action is brought by plaintiff, under the federal securities laws, individually and
    on behalf of a class of purchasers of the common stock of defendant Versata, Inc.
    ("Versata" or "the Company") during the period from April 24, 2000 through and
    including March 29, 2001 inclusive ("the Class Period") to recover damages caused by
    defendants' violations of the federal securities laws. As hereinafter alleged, during the
    Class Period defendants misrepresented the truth about Versata, its finances, revenues,
    gross margins and future business prospects. In particular, defendants misrepresented the
    
    SNIPPETS:
  • NORTHERN DISTRICT OF CALIFORNIA
  • VERSATA, INC.; JACK HEWITT JR;
  • This action is brought by plaintiff, under the federal securities laws, individually and on
  • As hereinafter alleged, during the Class Period defendants misrepresented the truth about
  • As a result of these material misrepresentations, the Company's securities traded at inflated
  • The claims asserted herein arise under and pursuant to Sections 10and 20of the Securities
  • Many of the acts and conduct complained of herein, including the preparation, issuance and
  • Versata maintained its principal place of business in this district at all relevant times.
  • Plaintiff Michael Nance purchased shares of Versata common stock during the Class Period, as
  • Defendant John A Hewitt Jr.
  • During the Class Period, Hewitt sold 10,000 shares of Versata common stock for proceeds of
  • Defendant Michael DeVries was at all relevant times Vice President-Marketing of the Company.
  • Because of their positions and access to material non-public information, each of these
  • the Individual Defendants are responsible for the accuracy of the public reports and releases
  • Excluded from the Class are the defendants herein, members of Versata's board of directors
  • The Company has at least hundreds of public shareholders, although the exact number and names
  • All members of the Class sustained damages arising out of defendants' conduct in violation of
  • Software license revenue reportedly increased 330% over the first quarter in 1999 and 38%
  • the United States for interim financial information and with the instructions to
  • Specifically, each of the defendants either knew or with deliberate recklessness failed to
  • By engaging in the conduct alleged herein, by the making of false and misleading statements,

  • 4 . 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

  • 5 . COMPLAINT B

    EXTRACTED KEY WORDS
    CUSTOMERS
    PUBLICLY TRADED SECURITIES
    REVENUE
    PLAINTIFFS
    E-BUSINESS
    OFFICER
    ACT
    CLASS ACTION
    DEFENDANTS
    ENABLES
    HEWITT
    APPLICATIONS
    SOFTWARE LICENSE REVENUE
    SALES
    BUSINESS
    MANAGEMENT
    CUSTOMER SUPPORT
    PROFESSIONAL SERVICES
    INDIVIDUAL DEFENDANTS
    BUSINESS RULES
    COMPREHENSIVE SUITE
    CONNECTION
    MISLEADING
    AUTOMATING E-BUSINESS CHANGE
    INTERNET INFRASTRUCTURE
    TRANSACTIONS
    ACCOUNTING
    REVENUE RECOGNITION
    AUTOMATIC GENERATION
    
    
    
    
    MILBERG WEISS BERSHAD
    HYNES & LERACH LLP
    WILLIAM S. LERACH (68581)
    DARREN J. ROBBINS (168593)
    600 West Broadway, Suite 1800
    San Diego, CA 92101
    Telephone: 619/231-1058
    619/231-7423 (fax)
        - and -
    REED R. KATHREIN (139304)
    100 Pine Street, Suite 2600
    San Francisco, CA 94111
    Telephone: 415/288-4545
    415/288-4534 (fax)
    Attorneys for Plaintiffs
    
    [Additional counsel appear on signature page.]
    
    
    
    
                                       UNITED STATES DISTRICT COURT
    
                                   NORTHERN DISTRICT OF CALIFORNIA
    
    
    DAVE PERNOT and MARK ENNIS,                        )  No. C-01-1559-MEJ
    On Behalf of Themselves and All Others             )
    Similarly Situated,                                )  CLASS ACTION
                            Plaintiffs,                ) )  COMPLAINT FOR VIOLATION
                                                             OF THE FEDERAL SECURITIES
        vs.                                            ) )  LAWS
    VERSATA, INC., JOHN A. HEWITT, JR.  )
                                                       )
    and KEVIN FERRELL,
                                                       ) )
                            Defendants.                )
    ___________________________________ ) DEMAND FOR JURY TRIAL
    
                                             SUMMARY AND OVERVIEW
    
    1. This is a securities fraud class action on behalf of all purchasers of the publicly traded
    securities of Versata, Inc. ("Versata" or the "Company") between March 2, 2000 and
    March 29, 2001 (the "Class Period"), including those who acquired their shares in
    connection with the Company's Initial Public Offering ("IPO") on March 2, 2000, against
    
    SNIPPETS:
  • VERSATA, INC., JOHN A. HEWITT, JR.
  • Versata and certain of its officers and directors for violations of the Securities Exchange
  • Versata provides a comprehensive suite of software and services that enable its customers to
  • From its incorporation in August 1991 through December 1994, it has been a professional
  • The company is conducting an inquiry into certain transactions from 2000 that may not have
  • Plaintiff Dave Pernot purchased Versata publicly traded securities as described in the
  • Defendant Versata provides a suite of software and services that enables its customers to
  • Its E-Business Automation System utilizes a unique business rules automation technology that
  • Defendant Kevin Ferrell was Chief Financial Officer of the Company until his resignation in
  • The individuals named as defendants in ¶11-are referred to herein as the "Individual
  • Each defendant was provided with copies of the Company's reports and press releases alleged
  • Software license revenue also includes product maintenance, which provides the customer with
  • Customers typically purchase these professional services from us to enlist our support in
  • Professional services are sold generally on time-and-materials basis, while customer support
  • Because the accounting for these items was the most important factor in the presentation of
  • Defendants acted knowingly or in such a reckless manner as to constitute a fraud and deceit
  • The report, by Rehan Syed, was based on Syed's conversations with management and stated:
  • Versata enables the above objectives with an industrial-strength environment which allows
  • The IPO priced at $24 and the stock now trades at $75 which represents 76x 2000 and 39x 2001
  • We recently initiated coverage with a Buy rating on recently-IPOed Versata Software, a
  • Engaged in acts, practices, and a course of business that operated as a fraud or deceit upon
  • CLASS ACTION ALLEGATIONS
  •    |