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1
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ORDER & FINAL JUDGEMENT
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EXTRACTED KEY WORDS
No key words found in document. -------------- This indicates that document is an image. -------------- Images in PDF files often contain text readable by persons but not by scanners. |
UNITED STATES DISTRICT
FOR THE DISTRICT OF MASSACHUSETTS
CAROL S. MORTON, et al., ) )
Plaintiffs, ) C. A.
)
.:'. Al*- ,~ ,\,,;
-against-
i
KURZWEIL APPLIED INTELLIGENCE,
INC., et al., i
Defendants. )
ORDER AND FINAL JUDGMENT
The above-entitled action (the
previously certified by' this Court for
a
class action on behalf of all persons who
of Kurzweil during the pe-riod from August
l
28, 1994, inclusive, and who were damaged
Excluded from the Class are all past and
any
affiliates, officers or directors of any entity
nd
any members of the immediate families of
defendants. The sole present defendant
& Lybrand L.L.P. ("C&L").
Pursuant to a Stipulation of
"Stipulation") dated November 21, 1997,
on
SNIPPETS:
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2
.
ORD CERTIFYING CLASS ACTN
|
EXTRACTED KEY WORDS
COURT DEFENDANTS SETTLEMENT BADER YORK BOSTON LLP MASSACHUSETTS SHAPIRO OFFICERS CIVIL PROCEDURE MEMBERS PLAINTIFFS TIRTHER NOTICE ADJOURN COURT EXPRESSLY RESERVES POST OFFICE SQUARE ELIOT LLP HOAG FOLEY HOTIAN CHRISTIAN WHITE PLAINS WALTON BADER PENNSYLVANIA PLAZA LERACH LLP WEISS BERSHAD HYNES MILBERG WEISS BERSHAD DUMAIN |
: IGNITED STATES DISTRICT COURT-
5 FOR THE DISTRICT OF MASSACHUSETTS
CAROL S. MORTON, CSM PARTNERS )
L.P., et al., '
Plaintiffs, i
-against- > C.A. No.
>
KURZWEIL APPLIED INTELLIGENCE, )
INC., et al., 1
Defendants. )
1
ORDER CERTIFYING CLASS ACTION FOR SETTLEMENT
AND DIRECTING NOTICE, SETTLEMENT
HEARING AND DMI'NISTRATION
Upon review and consideration of the Stipulation of Settlement dated
and the exhibits annexed thereto (the "Stipulation"), executed on behalf of
proposed class members and Coopers & Lybrand L.L.P. ("C&L"), by their duly
counsel, and as a hearing on the proposed Settlement is necessary under Rule 23
Rules of Civil Procedure;
NOW, upon the application of all plaintiffs in the above-captioned
defendants, it is hereby ORDERED as follows:
1. This consolidated action is hereby certified to proceed
Rule 23 (a) and 23(b)(3) of the Federal Rules of Civil Procedure for the
Settlement on behalf of a class consisting of "all persons who purchased common
Kurzweil during the period from August 17, 1993 through April 28, 1994,
were damaged thereby. Excluded from the Class are all past and present
affiliates, officers or directors of any entity defendants, and any members of
of the individual defendants."
.Qf
SNIPPETS:
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3
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DF ASNTD MTN STLMNT BR OR
|
EXTRACTED KEY WORDS
BAR ORDER EXHIBIT COURT PLAINTIFFS REFORM ACT STIPULATION DEFENDANT SECURITIES LITIGATION HERETO SETTLING DEFENDANTS ENTRY ESQ PRIVATE SECURITIES CLASS ACTION MOTION LYBRAND COOPERS BADER ATTORNEYS PURPOSES ENTERING CIR SUB NOM SUPP SECUNTRES FEDERAL COURT CONDITION PRECEDENT SUPPORT |
CAROL S. MORTON, CSM PARTNERS, I :: .
) ,,i/-.
ELLIOT BECKER, RAND1 ZINBERG, >
MARTIN SEAMAN, TEACHERS' >
RETIREMENT SYSTEM OF LOUISIANA, 1
DARIN J. LIEBER, NEIL F. O'CONNELL, 1
THOMAS J. O'CONNELL, and )
KENNETH R. FIRST, M.D., >
1
Plaintiffs, > C.A. No. 94-10829~REK
1
V. >
>
KURZWEIL APPLIED INTELLIGENCE, 1
INC., RAYMOND C. KURZWEIL, )
BERNARD F. BRADSTREET, ROBERTSON )
STEPHENS & COMPANY, L.P., >
NEEDHAM & COMPANY, INC. and )
COOPERS & LYBRAND, L.L.P., >
>
Defendants. >
COOPERS & LYBRAND L.L.P.`S
ASSENTED TO MOTION FOR S ET TL&MENT B AR ORJIER
Settling Defendant Coopers & Lybrand L.L.P. ("C&L"), the sole remaining defendant
in this action, moves for entry of a Settlement Bar Order in the form of the proposed order
attached hereto as Exhibit 1 in connection with the hearing on Final Approval of Settlement to
be held on February 4, 1998 In support of this motion, C&L states as follows:
On November 21, 1997 C&L and plaintiffs entered into a Stipulation of Settlement of
this class action (the "Stipulation"). The Stipulation provides, as a condition precedent to
settlement, that "a Settlement Bar Order in the form attached [thereto] as Exhibit C me]
r
entered by the Federal Court." Stipulation at 9 and Exhibit C to Stipulation. The proposed
order attached hereto at Exhibit 1 is a copy of Exhibit C to the Stipulation.
Federal courts enter settlement bar orders to encourage settlements and to provide
SNIPPETS:
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4
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PLF MEM SUP PRPSD STLMNT
|
EXTRACTED KEY WORDS
DAMAGES LITIGATION INDEMNIFICATION MORTON CAROL KATZ YOUNQ STEIN NEWMAN |
UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MASSACHUSETTS
CAROL S. MORTON, CSM PARTNERS )
L.P., et al.,
Plaintiffs,) Civ. Action
V. 1
KURZWEIL APPLIED INTELLIGENCE,
INC., et al.,
;
"--
X.
Defendants.)
1'"1
,1,.
1
,y,r
--u
"' F
;'::I
iTt
CLASS PLAINTIFFS' MEMORANDUM OF LAW
,,,)
a
,,
SNIPPETS:
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5
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STIPULATION OF SETTLEMENT
|
EXTRACTED KEY WORDS
FEDERAL COURT STIPULATION KURZWEIL CLASS PLAINTIFFS COUNSEL PURSUANT SETTLEMENT FUND LAW EXHIBIT GROSS SETTLEMENT FUND CLASS ESCROW AGENT CIVIL COMMON DEFENDANT CLAIMS ADMINISTRATOR PARAGRAPH MASSACHUSETTS DISTRICT COURT CLASS MEMBER APPROVALS CLASS PERIOD PARTIES HERETO DIRECTORS UNITED STATES ATTORNEYS CONNECTION NET SETTLEMENT FUND KURZWEIL APPLIED INTELLIGENCE FEDERAL SECURITIES LAWS |
UNITED STATES DISTRICT COURT
DISTRJCT OF MASSACHUSETTS
CAROL S. MORTON, CSM PARTNERS,
ELLIOT BECKER, RAND1 ZINBERG,
MARTlN SEAMAN, TEACHERS'
RETIREMENT
SYSTEM OF LOUISIANA, DARIN J.
LIEBER, NEIL F. O'CONNELL,
THOMAS J. O'CONNELL, and
KENNETH R. FIRST, M.D.,
Plaintiffs,
V. CA. No.
Mass.)
RURZWEIL APPLIED INTELLIGENCE,
INC., RAYMOND C. KURZWEIL,
BERNARD F. BRADSTREET, ROBERTSON
STEPHENS & COMPANY, L.P.,
NEEDHAM & COMPANY, INC. and
COOPERS & LYBRAND, L.L.P.,
Defendants.
i
KURZWEIL APPLIED INTELLIGENCE, INC. )
>
Plaintiff, 1 Civil Action
) No. 95-5720-E
V. ) sup. ct.)
1
COOPERS & LYBRAND, L.L.P. 1
1
The Class Plaintiffs, Kurzweil AI, and C&L, as each are hereinafter defined,
through their respective counsel, hereby enter into the following Stipulation of
-l-
SNIPPETS:
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6
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C&L MTN IN SUP OF DEPS
|
EXTRACTED KEY WORDS
MOTION KURZWEIL SUBPOENA DEFENDANT LYBRAND COOPERS ESQ MEMORANDUM REQUESTS DEVALERIO MASSACHUSETTS BOSTON SHAPIRO CERTIFY MATTER ATTORNEYS CASEY PETER ADEQUATE REASONS EMERGENCY KURZWEIL EMPLOYEES INTENDS CUSTOMERS SALESPEOPLE DEFENSE LIBERTY SQUARE PEASE BERMAN |
UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
CAROL S. MORTON, et al.,
Plaintiffs,
V. C.A. No. 94-10829~RBK
ORAL ARGUMENT
KURZWEIL APPLIED INTELLIGENCE,
INC., RAYMOND c. KURZWEIL,
BERNARD F. BRADSTREET, ROBERTSON
STEPHENS & COMPANY, L.P.,
NEEDHAM & COMPANY, INC. and
COOPERS & LYBRAND, L.L.P.,
Defendants.
-
COOPERS & LYBRAND L.L.P.`S EMERGENCY MOTION
[XIEAVE OF TEN DEPOSITIONS
Defendant Coopers & Lybrand L.L.P. ("C&L") hereby moves pursuant to Fed. R.
30(a)(2) for leave to take more than ten depositions in this action. In connection
of this action, C&L has subpoenaed for deposition ten current or former Kurzweil
C&L has also subpoenaed for deposition nine customers. C&L also has subpoenaed (or intends
to subpoena) for deposition eight other Kurzweil employees, key insiders at Kurzweil
for communicating with C&L. Plaintiffs have informed C&L that they intend to object to
taking more than ten depositions.
C&L Iiles this motion on an emergency basis because the deadline for
discovery in this case is May 30, 1997. The depositions of the salespeople and
285012.1
SNIPPETS:
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7
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C&L MEM FOR DEPOSITIONS
|
EXTRACTED KEY WORDS
PLAINTIFFS COMPLAINT KURZWEIL TRANSACTIONS DEFENDANTS TESTIMONY DISCOVERY COMMUNICATING CUSTOMERS SETTLING DEFENDANTS PARTIES REASONS SALESPEOPLE COURT AUDIT ACCORDING ALLEGES SCHEDULING ORDER SUBPOENA SETTLEMENT MOTION ADMISSIBILITY STIPULATE WITNESSES JUDGEMENT NATURE SOFTWARE DEVELOPMENT SALES COMPARATIVE FAULT |
UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
CAROL S. MORTON, et al.,
Plaintiffs,
V. C.A. No. 94-10829~REK
KURZWEIL APPLIED INTELLIGENCE,
INC., RAYMOND c. IaJRzwEIL,
BERNARD F. BRADSTREET, ROBERTSON
STEPHENS & COMPANY, L.P.,
NEEDHAM & COMPANY, INC. and
COOPERS & LYBRAND, L.L.P.,
Defendants.
COOPERS & LYBRAND L.L.P.`S MEMORANDUM IN SUPPORT OF
EMERGENCY MOTION FOR LEAVE TO TAKE IN EXCESS OF TEN DEPOSITIONS
Defendant Coopers & Lybrand L.L.P. (Y&L") submits this memorandum in
its Emergency Motion for Leave to Take in Excess of Ten Depositions.
PRELIMINARY STATEMENT
This action is a complex securities fi-aud class action. By their Complaint,
charged Kurzweil Applied Intelligence, Inc. ("Kurzweil"), C&L, and other defendants with
violations of 6 11 of the Securities Act of 1933, 15 USC. $77k, and 8 10(b) of the
Exchange Act of 1934, 15 U. S.C. $78j. &e Consolidated Amended Class Action Complaint
("Complaint") at 77 124-160. In May 1995, Kurzweil and all of the defendants
(collectively the "Settling Defendants") settled with Plaintiffs. C&L continues to defend
285072.1
SNIPPETS:
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8
.
C&L OPP TO COMPEL WITNSES
|
EXTRACTED KEY WORDS
MANAGING AGENTS CIV CAAMITICF FORTHEUSE OFDEPOSITION OFA OWS FORTHEUSE OFDEPOSITION PROPER NOTICE DEPOSITIONAFTERTHE CORPORATIONIS OFONE OFITS MANAGING FAILURE ONTHE FUTILE MORTON CAROL |
UNITED STATES DISTRICT
DISTRICT OF MASSACHUSETTS
,-'-
CAROL S. MORTON, et al.,
Plaintiffs,
V.
;
KURZWEIL APPLIED INTELLIGENCE,
INC., et al. ,'
Defendants.
COOPERS & LYBRAND L.L.P.'S
TO PLAINTIFFS' MOTION TO COMPEL THE
PRODUCTION OF WITNESSES FOR DEPOSITION
Coopers & Lybrand L.L.P. ("C&L')
on
to Compel the Production of Witnesses for
Plaintiffs seek to compel C&L to produce
two
former C&L employees, Jos van Shaik and
that they are "managing agents" of C&L under
37(d) and 32(2). However, only current
entity or those under its control may be subject
deposition as "managing agents." Neither
work for or are under the control of C&L.
they
are not "managing agents." Under these
r
SNIPPETS:
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9
.
C&L RESP TO PLF CERT MEM
|
EXTRACTED KEY WORDS
COURT SUPP PURCHASERS CERTIFICATION SECURITIES OFFERING GUSTAFSON COOPERS CONTRAST SEAQATE AFTER-MARKET SUBMISSION MOTION MEMORANDUM RESPONSE LYBRAND ESQUIRE BBO JUDGE ICN CONFLICT OPINION STATUTE SQUARE STANDING DEFENDANT KURZWEIL BADER BOSTON |
STATES DISTRICT COURT
OF MASSACHUSETTS
l . . . . . ...*
. . . .
CAROL S. MORTON, CSM PARTNERS,
ELLIOT BECKER, RAND1 ZINBERG,
.
MARTIN SEAMAN, TEACHERS'
.
RETIREMENT SYSTEM OF
.
DARIN J. LIEBER,
l
O'CONNELL, THOMAS J.
.
and KENNETH R. FIRST,
.
.
.
l
V.
C.A. NO.
.
.
KURZWEIL APPLIED
.
INC., RAYMOND C. KURZWEIL,
l
BERNARD F. BRADSTREET,
BERTSON .
STEPHENS & COMPANY, L.P.,
.
NEEDHAM & COMPANY, INC.,
SNIPPETS:
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10
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PLF SUP MEM MTN CLS CERT
|
EXTRACTED KEY WORDS
BADER YOURMAN WEISS BRODY GATEWAY SKELTON THOMAS LOWEY DANNENBERG BEMPORAD PEASE LLP DEVALERIO BERMAN CERTIFICATION MORTON CAROL |
UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
CAROL S. MORTON, et al.,
Plaintiffs, ;
V. i C.A. No.
KURZWEIL APPLIED INTELLIGENCE, ;
INC.: RAYMOND C. KURZWEIL;
BERNARD F. BRADSTREET; ROBERTSON
STEPHENS & COMPANY, L.P.;
i
NEEDHAM & COMPANY, INC.; and
COOPERS & LYBRAND, L.L.P., ;
Defendants.
?a
I-
PLAINTIFFS' SUPPLEMENTAL MEMORANDUM
IN SUPPORT OF THEIR MOTION FOR
CLASS CERTIFICATION
Pursuant to the court's direction
conference on October 24, 1996, plaintiffs
this Supplemental Memorandum in Support of their
Certification. This memorandum provides further
position that plaintiffs have standing to pursue
SNIPPETS:
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11
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DEF RPLY TO PLF MTN CERT
|
EXTRACTED KEY WORDS
LERACH LYBRAND COOPERS STEPHENS ROBERTSON BRADSTREET BERNARD KENNETH THOMAS NEIL LIEBER DARIN LOUISIANA RETIREMENT SYSTEM TEACHERS MARTIN SEAMAN RAND1 ZINBERG ELLIOT BECKER CSM PARTNERS MORTON CAROL |
.
rJ
UNITED STATES DISTRICT COURT
yF
DISTRICT OF MASSACHUSETTS
' p "
. . ...* .* .* .* . . . . . .
CAROL S. MORTON, CSM PARTNERS,
ELLIOT BECKER, RAND1 ZINBERG,
MARTIN SEAMAN, TEACHERS'
RETIREMENT SYSTEM OF LOUISIANA,
DARIN J. LIEBER, NEIL F.
O'CONNELL, THOMAS J. O'CONNELL,
and KENNETH R. FIRST, M.D.,
Plaintiffs,
.
V. .
.
KURZWEIL APPLIED INTELLIGENCE, .
INC., RAYMOND C. KURZWEIL,
BERNARD F. BRADSTREET, ROBERTSON
STEPHENS & COMPANY, L.P.,
NEEDHAM & COMPANY, INC., and
COOPERS & LYBRAND, L.L.P.,
Defendants.
. . . . . . . ...* .* .*. l
DEFENDANT COOPERS & LYBRAND L.L.P.'S
TO PLAINTIFFS' MOTION FOR CLASS
Defendant Coopers & Lybrand
Surreply to Plaintiffs ' Motion for Class
ARGUMENT
I. FRAUD-ON-THE-MARKET IS INAPPLICABLE
INITIAL PUBLIC OFFERING
As set forth in C&L's Opposition
SNIPPETS:
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12
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PLF RPLY MEM ON CERT
|
EXTRACTED KEY WORDS
STOCK IPO SECURITIES FRAUD PRICE COOPERS OFFERING PLAINTIFFS PUBLIC OFFERING COURT CLASS PERIOD CLASS ACTION SALE DAMAGES FINANCIALS SHARES CLASS MEMBERS CLASS CERTIFICATION CONFLICTS CLASS REPRESENTATIVES INFLATION KURZWEIL STOCK PURCHASERS DEFENDANT SECURITIES LAWS CLAIMANTS SUBCLASSES NASDAQ MARKET THEORY TRADING MARKET |
UNITED- STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
CAROL S. MORTON, CSM PARTNERS,
ELLIOT BECKER, RAND1 ZINBERG,
MARTIN SEAMAN, TEACHERS'
RETIREMENT SYSTEM OF LOUISIANA,
DARIN J. LIEBER, NEIL F. O'CONNELL,
THOMAS J. O'CONNELL, AND KENNETH CA. No. 94-10829-s
R. FIRST, M.D.,
Plaintiffs,
V.
KURZWEIL APPLIED INTELLIGENCE,
INC., RAYMOND C. KURZWEIL,
BERNARD F. BRADSTREET, ROBERTSON
STEPHENS & COMPANY, L.P., NEEDHAM
& COMPANY, INC. AND COOPERS &
LYBRAND, L.L.P.,
Defendants.
PLAINTIFFS' REPLY MEMORANDUM ON
MOTION FOR CLASS CERTIFICATION
This case presents an archetypal securities fraud wherein a potentially
company goes public in a NASDAQ initial public offering ((LIPO") fueled by audited
statements that show strong performance in terms of past sales and earnings. The company's
stock takes off on the strength of market information fed by the IPO documents and the
publicity of the offering. The stock doubles the IPO price within three months. Five
later the truth emerges. The original fmancials in the IPO severely and falsely
and earnings. The financials have to be restated, and the stock crashes.
The securities fraud in this case is clear and publicly known. On April
company, Kurzweil Applied Intelligence, Inc. ("Kurzweil"), its officer/director defendants,
the underwriters in the IPO, settled the securities law claims in this case, and on
federal jury convicted certain of Kurzweil's top officers of criminal securities
SNIPPETS:
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13
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C&L OPP TO PLF MTN CERT
|
EXTRACTED KEY WORDS
COURT KURZWEIL CERTIFICATION SECURITIES MOTION STOCK MARKET DEFENDANTS CLASS PERIOD FRAUD COOPERS ZINBERG TRADERS PRICE CERTIFY CONFLICT BRADSTREET RELIANCE OPPOSITION LYBRAND DISTRICT MISREPRESENTATION IPO SUBCLASSES STANDING OFFERING SEAQATE EXCHANGE BERNARD |
UNITED
COURT
DISTRICT
* :;
: :..;:
:'" " ZE * ."
CAROL S. MORTON, CSM PARTNERS,
ELLIOT BECKER, RAND1 ZINBERG,
MARTIN SEAMAN, TEACHERS'
RETIREMENT SYSTEM OF LOUISIANA,
DARIN J. LIEBER, NEIL F.
O'CONNELL, THOMAS J. O'CONNELL,
and KENNETH R. FIRST, M.D.,
Plaintiffs,
V.
C.A. NO. 94-10829-REK
KURZWEIL APPLIED INTELLIGENCE,
INC., RAYMOND C. KURZWEIL,
BERNARD F. BRADSTREET,
STEPHENS & COMPANY, L.P.,
NEEDHAM & COMPANY, INC.,
COOPERS & LYBRAND, L.L.P.,
Defendants.
. . . . I . . . . . . . .
DEFENDANT COOPERS & LYBRAND L.L.P.'S
OPPOSITION
TO PLAINTIFFS'
Defendant Coopers &
(tlC&LII) opposes plaintiffs'
motion for class certification.
Plaintiffs' motion
SNIPPETS:
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15
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PLF MTN FR ENTRY ORD DIST
|
EXTRACTED KEY WORDS
LOUISIANA |
. ,
,'
UNITED STATES DISTRICT
FOR THE DISTRICT OF
CAROL S. MORTON, CSM PARTNERS >
L.P., et al.,
Plaintiffs, ,'
-against-
i
KURZWEIL APPLIED INTELLIGENCE, )
INC., et al.,
Defendants. ,'
STUART KALFON, ,'
Plaintiff ,
-against- ,'
1
KURZWEIL APPLIED INTELLIGENCE, )
INC., et al.,
Defendants.
T ,'
-ELLIOT BECKER, RAND1 ZINBERG, ,'
et al., )
/-i\ Plaintiffs,
\ -against- ,'
1
KURZWEIL APPLIED INTELLIGENCE, )
INC., et al.,
Defendants, ,'
\
MARTIN SEAMAN, i
Plaintiff,
-against- i C.A.
)
KURZWEIL APPLIED INTELLIGENCE, >
INC., et al.,
Defendants. ,'
TEACHERS' RETIREMENT SYSTEM ,'
SNIPPETS:
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16
.
PLF MEM N SUP OF CLS CERT
|
EXTRACTED KEY WORDS
COOPERS COMMON STOCK KURZWEIL DEFENDANT CLASS PERIOD CAC FINANCIAL STATEMENTS CLASS ACTION CLASS MEMBERS CLASS CERTIFICATION DAMAGES CIVIL PROCEDURE COURT MOTION AUDIT SECURITIES PURCHASED KURZWEIL FORMER DEFENDANTS PURCHASERS KURZWEIL APPLIED INTELLIGENCE CSM PARTNERS MATERIALLY FALSE REPRESENTATION TYPICALITY REQUIREMENT TRANSACTIONS SOFTWARE DEVELOPMENT COSTS MISLEADING UNQUALIFIED AUDIT OPINION IPO |
UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
CAROL S. MORTON, CSM PARTNERS,
ELLIOT BECKER, RAND1 ZINBERG,
MARTIN SEAMAN, TEACHERS'
RETIREMENT SYSTEM OF LOUISIANA,
DARIN 5. LIEBER, NEIL F. O'CONNELL,
THOMAS J. O'CONNELL, AND KENNETH CA. No. 94-10829-REK
R. FIRST, M.D.,
Plaintiffs,
V.
KURZWEIL APPLIED INTELLIGENCE,
INC., RAYMOND C. KURZWEIL,
BERNARD F. BRADSTREET, ROBERTSON
STEPHENS & COMPANY, L.P., NEEDHAM
& COMPANY, INC. AND COOPERS &
LYBRAND, L.L.P.,
Defendants.
PLAINTIFFS' MEMORANDUM OF LAW IN
SUPPORT OF THEIR MOTION FOR CLASS CERTIFICATION
P
RELIMINAR_Y
Plaintiffs submit this memorandum in support of their motion, pursuant to Rule
Federal Rules of Civil Procedure, for certification of the following class of purchasers
Kurzweil Applied Intelligence, Inc. ~`Kurzweil" or the "Company") common stock:
All persons and entities (the "Class") who purchased Kurzweil Applied
Intelligence, Inc. ("Kurzweil") common stock between August 17, 1993 and April
2X, 1994 (the "Class Period") and suffered damages as a result. Excluded from
the Class are the defendant Coopers & Lybrand, L.L.P., former defendants
Kurzweil, Raymond C. Kurzweil, Bernard F. Bradstreet, Robertson Stephens &
Company, L-P., Needham & Company, Inc., their subsidiaries, affiliates,
members of the immediate families of each of the individual defendants n
the Consolidated Amended Class Action Complaint, present and former o
directors, partners and employees of each defendant or former defendant
CLASSZ.DOC
SNIPPETS:
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17
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PLF MTN FR CLS CERT & DIS
|
EXTRACTED KEY WORDS
FLOOR LERACH DEPOSITIONS DISCOVERY LYBRAND COOPERS STEPHENS CSM PARTNERS MORTON CAROL |
UNITED STATES DISTRICT
DISTRICT OF MASSACHUSETTS
CAROL S. MORTON, CSM PARTNERS,
ELLIOT BECKER, RAND1 ZINBERG, i
MARTIN SEAMAN, TEACHERS' RETIREMENT)
SYSTEM OF LOUISIANA, DARIN J.
LIEBER, NEIL F. O'CONNELL, ;
THOMAS J. O'CONNELL, and
KENNETH R. FIRST, M.D., ;
Plaintiffs, ;
(REK)
V. ;
KURZWEIL APPLIED INTELLIGENCE, ;
INC., RAYMOND C. KURZWEIL,
BERNARD F. BRADSTREET, ROBERTSON ;
STEPHENS & COMPANY, L.P.,
NEEDHAM & COMPANY, INC. and ;
COOPERS & LYBRAND, L.L.P.,
Defendants.
SCHEDULING ORDER
I. PLAINTIFFS' MOTION FOR CLASS CERTIFICATION
DISCOVERY
1. Plaintiffs will file a Motion
on or before November 17, 1995. Coopers
overy
on issues relating to class certification
Discovery") for a 120-day period following
Motion for Class Certification. Within
the
conclusion of that period, the parties
SNIPPETS:
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18
.
RQST FR INT ASS REG EVDNC
|
EXTRACTED KEY WORDS
MILBERG WEISS BERSHAD STULL BADER ELIOT HOAG FOLEY LAW OFFICES BRODY SHAPIRO HABER LERACH LLP WEISS BERSHAD HYNES AMERICA REQUEST WITNESSES MISLEADING CASEY PETER ATTORNEYS JOSEPH GATEWAY DEVALERIO URMY LLP EVIDENCE MORTON CAROL POST OFFICE SQUARE PROCEEDING PERTINENT PHILLIPS |
UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
CAROL S. MORTON, et al.,
Plaintiffs, j
v.. 'C.A. No.
KURZWEIL APPLIED INTELLIGENCE,
INC.: RAYMOND C. KURZWEIL;
BERNARD F. BRADSTREET; ROBERTSON i
STEPHENS & COMPANY, L.P.;
NEEDHAM & COMPANY, INC.; and ;
COOPERS & LYBRAND, L.L.P.,
;
Defendants. 1
REQUEST FOR INTERNATIONAL JUDICIAL
ASSISTANCE PURSUANT TO THE HAGUE CONVENTION
OF 18 MARCH 1970 ON THE TAKING OF EVIDENCE
BBROAD_IN
1. This request is being made by the United
District Court for the District of Massachusetts,
Robert E. Keeton presiding, U.S. Post Office and
Devonshire Street, Boston, Massachusetts 02109.
2. This request is made to the Central
the United Kingdom, at the High Court of Justice,
Division.
3. The executed request should be sent to:
P. Dumain, Esq., Milberg Weiss Bershad Hynes & Lerach
Pennsylvania Plaza, New York, NY 10119, USA, Telephone
594-5300, Facsimile No.: (212) 868-1229.
4. In conformity with Article 3 of the
SNIPPETS:
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19
.
CONSOLIDATED AMENDED COMPLAINT
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EXTRACTED KEY WORDS
COOPERS PAYMENTS CUSTOMER EMPHASIS BAVE RAISED COOPERS FLAGS LOSSES REPORT OPINION FACTUAL ALLEGATION RELATING MASSACHUSETTS OFFERINGTL LYBRAND STEPHENS KURZWEIL RAYMOND RETIREMENT TEACHERS MARTIN SEAMAN RAND1 ZINBERG ELLIOT BECKER CSM PARTNERS MORTON CAROL |
UNITED STATES DISTRICT
DISTRICT OF MASSACHUSETTS
CAROL S. MORTON, CSM PARTNERS,
ELLIOT BECKER, RAND1 ZINBERG,
MARTIN SEAMAN, TEACHERS' RETIREMENT)
SYSTEM OF LOUISIANA, DARIN J.
LIEBER, NEIL F. O'CONNELL, 1
THOMAS 3. O'CONNELL, and
KENNETH R. FIRST, M.D., ; C.A.
Plaintiffs, ;
V.
KURZWEIL APPLIED INTELLIGENCE, i
INC., RAYMOND C. KURZWEIL,
BERNARD F. BRADSTREET, ROBERTSON ; JURY TRIAL
STEPHENS & COMPANY, L.P.,
NEEDHAM & COMPANY, INC. and ;
COOPERS & LYBRAND, L.L.P.,
Defendants.
CONSOLIDATED AMENDED CLASS ACTION
Plaintiffs, by their attorneys,
based upon information and belief and upon the
by and through their attorneys including,
I review of internal documents, press releases,
filings with the Securities and Exchange
INTRODUCTION
1. This is a class action brought
behalf of a class (the ltClassl') of all persons
purchased common stock of defendant Kurzweil
Intelligence, Inc. ("KurzweilVV or "the Companytl)
period between August 17, 1993 and April 28,
("the Class Period").
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ANSWER TO COMPLAINT & CLAIM
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EXTRACTED KEY WORDS
AVERMENTS TRUTH KURZWEIL SPEAKS ACCOUNTING REPORT STANDARDS KNOWLEDGE SUFFICIENT LACKS INFORMATION PLAINTIFFS AUDIT ADMITS PROSPECTUS COMMON STOCK INDEPENDENT ACCOUNTANTS SHARES DEFENDANT AUDITING MATTER COMPLAINT PURSUANT UNDERWRITERS PURCHASE PARTNERSHIP OMISSIONS RESPONSE DENIES ACCOUNTING PRINCIPLES INTERNAL CONTROL STRUCTURE |
UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
1
CAROL S. MORTON, et al., >
i
Plaintiffs, 1
1
V. 1
)
KURZWF3L APPLIXD INTELLIGENCE, 1
INC., RAYMOND C. KURZWEIL, 1
BERNARD F. BRADSTREET, ROBERTSON >
STEPHENS & COMPANY, L.P., )
NEEDHAM & COMPANY, INC. and 1
COOPERS & LYBRAND, L.L.P.,
1
Defendants. 1
ANSWER TO CONSOLIDATED AMENDED CLASS
ACTION COMPLAINT AND JURY CLAIM
Defendant Coopers & Lybrand L.L.P., a limited liability partnership under the laws
of the State of Delaware since August 1, 1994, and prior thereto a general partnership,
hereinafter referred to as "C&L," hereby answers the Consolidated Amended Class Action
Complaint (the "Complaint").
FIRST DEFENSE
With respect to the averments in the numbered paragraphs of the Complaint, C&L
answers in corresponding numbered paragraphs as follows:
1. Denied, except C&L admits that plaintiffs purport to bring a class
action on behalf of a class of all persons or entities who purchased common stock
Defendant Kurzweil Applied Intelligence, Inc. ("Rurzweil") during the period between
August 17, 1993 and April 28, 1994, inclusive.
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C&L OPP TO PLF MTN
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EXTRACTED KEY WORDS
DEFENDANT LYBRAND COOPERS NEEDHAM ROBERTSON BRADSTREET BERNARD MORTON CAROL |
UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
CAROL S. MORTON, et al.,
Plaintiffs,
V. 1 C.A. No.
KURZWEIL APPLIED INTELLIGENCE, ;
INC., RAYMOND C. KURZWEIL,
BERNARD F. BRADSTREET, ROBERTSON
STEPHENS & COMPANY, L.P., I
NEEDHAM & COMPANY, INC. and
COOPERS & LYBRAND, L.L.P.,
i
Defendants. 1
COOPERS & LYBRAND L.L.P.'S OPPOSITION
PLAINTIFFS' MOTION TO STRIKE
Coopers t Lybrand L.L.P. (IvC&L1t), independent
Kurzweil Applied Intelligence, Inc. (ttKurzweiltt),
Opposition to Plaintiffs' Motion to Strike.
strike Exhibits 1 (the amended Medical Horizons,
confirmation letter), 2 (the Information against
Murray), and 3 (the Debra J. Murray plea agreement)
Memorandum in Support of its Motion to Dismiss
DismissI'). For the reasons set forth below,
should be denied.
The Amended Confirmation Letter Has
Incorporated By Reference
The plaintiffs erroneously contend that this
foreclosed from considering the amended confirmation
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PLF MEM OPP DEF MTD COMP
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EXTRACTED KEY WORDS
COOPERS SECURITIES MOTION DISMISS FINANCIAL STATEMENTS SECURITIES ACT COMPL REVENUE COMPLAINT KURZWEIL COURT SUPP STANDARDS FRAUD AUDIT DEFENDANTS ALLEGATIONS TRANSACTIONS LOSS CAUSATION PARTICULARITY DEVELOPMENT COSTS CLASS PERIOD AUDIT OPINION REGISTRATION STATEMENT RECKLESSNESS GAAS CORRECTIVE DISCLOSURE PRIMA FACIE DEFICIENCIES |
UNITED STATES DISTRICT COURT I;;,: i" ;& ;-r .,, i r,..
DISTRICT OF MASSACHUSETTS iis: : !.:
a-
L , . . 2 : .: .,
> 4 . . . .
CAROL S. MORTON, and CSM PARTNERS,
L.P., et al., i
V. >
Plaintiffs, )
>
) C.A. No. 94-10829-REK
>
KURZWEIL APPLIED INTELLIGENCE, >
INC,, et al., >
>
Defend&s. >
PLAINTIFFS' MEMORANDUM OF LAW IN OPPOSITION TO
DEFENDANT COOPERS & LYBRAND L.L.I'.`S MUHON To
DISMISS TJilE CONSOLIDATED AMENDED CLASS ACTION COMPLAINT
TABLE OF CONTENTS
Pages
PRELIMINARY STATEMENT . . . , , . . . . . . . . . . . . . . . . . .
.
STATEMENTOFFACTS . . . . . . . . . . . . . . , . . . . .
. . . . . .
ARGUMENT ...................................................
I. THE APPLICABLE STANDARDS ON A MOTION To DISMISS ..............
II. THE COMPLAINT STATES A VALID CAUSE OF ACTION
UNDER SECIION 11 OF THE SECURITIES ACT , f , , _ _ . _ . . . . . . . .
A. Plaintiffs Have Stated A Prima Facie Claim Under Section 11 . . . .
B. Rule 9(b) Does Not Apply To Plaintiffs' Section 11 Claim . . . . .
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