Securities Litigation: Ditech Communications

In re Ditech Communications Corp. Securities Litigation
USDC ND California
Disclosure
Merger

Background

Company background

News-stock chart
Company website
SEC EDGAR Renamed Ditech Networks Inc

Litigation background

In re Ditech Communications Corp. Securities Litigation
USDC ND California 05-02406

Hon. Jeffrey S. White
Filed 6.14.05

Lead plaintiffs

Jack Casey, Tonio Dahmen, George Innocenti, Shengli Duan and Norbert Czub

SEC disclosures

Form 10-K 8.08.07 At page 15
Item 3Legal Proceedings
Beginning on June 14, 2005, several purported class action lawsuits were filed in the United States District Court for the Northern District of California, purportedly on behalf of a class of investors who purchased Ditech's stock between August 25, 2004 and May 26, 2005. The complaints allege claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 against Ditech and its Chief Executive Officer and Chief Financial Officer in connection with alleged misrepresentations concerning VQA orders and the potential effect on Ditech of the merger between Sprint and Nextel, seeking monetary damages. All of the lawsuits were consolidated into a single action entitled In re Ditech Communications Corp. Securities Litigation, No. C 05-02406-JSW, and a consolidated amended complaint was filed on February 2, 2006. The defendants moved to dismiss the complaint, and by order dated August 10, 2006, the court granted the defendants' motion and dismissed the complaint with leave to amend. The plaintiffs filed their Second Amended Complaint on September 11, 2006. The defendants again moved to dismiss, and by order dated March 22, 2007, the court dismissed the Second Amended Complaint with leave to amend. The plaintiffs filed their Third Amended Complaint on April 23, 2007. On May 14, 2007, the defendants again moved to dismiss. By order dated October 11, 2007, the court dismissed the third amended complaint with prejudice. On November 8, 2007, the plaintiffs filed a notice of appeal to the Ninth U.S. Circuit Court of Appeals. The appeal has been fully briefed. No date for oral argument of the appeal has been set.

Claims

Complaint