Securities Litigation: Datatec

In re: Datatec Systems, Inc. Securities Litigation (Kahn v. Gaon)
USDC New Jersey
Disclosure

Company background

Litigation background

Lead plaintiffs

Complaint

Motion to Dismiss D&T Granted / Individuals Granted/Denied

Motion to dismiss

Opinion

For these reasons: (1) D&Ts motion to consolidate is denied; (2) D&Ts motion to dismiss is granted in its entirety; and (3) the Individual Defendants motions to dismiss are granted in part and denied in part. With respect to the Individual Defendants motions to
dismiss, those motions are granted with respect to Plaintiffs allegations that the Individual Defendants overstated Datatecs gross profit margins, and that they touted the development of phantom products. The motions are denied, however, with respect to Plaintiffs allegations that the Individual Defendants improperly recognized materials purchases as revenues, and that they used phantom invoices.

Motion to Consolidate Denied

Motion to consolidate