Securities Litigation: Dot Hill Systems

Brody v. Dot Hill Systems
USDC SD California
Restatement
Internal Controls; Post-Tellabs

Company background

Litigation background

Lead plaintiffs

SEC disclosure

Form 10-Q 8.11.08 At page 34
In late January and early February 2006, numerous purported class action complaints were filed against us in the United States District Court for the Southern District of California. The complaints allege violations of federal securities laws related to alleged inflation in our stock price in connection with various statements and alleged omissions to the public and to the securities markets and declines in our stock price in connection with the restatement of certain of our quarterly financial statements for fiscal year 2004, and seeking damages therefore. The complaints were consolidated into a single action, and the Court appointed as lead plaintiff a group comprised of the Detroit Police and Fire Retirement System and the General Retirement System of the City of Detroit. The consolidated complaint was filed on August 25, 2006, and we filed a motion to dismiss on October 5, 2006. The Court granted our motion to dismiss on March 15, 2007. Plaintiffs filed their Second Amended Consolidated Complaint on April 20, 2007. We filed a motion to dismiss the Second Amended Consolidated Complaint on May 1, 2008 and a hearing is set for August 14, 2008.

Data entry error; weaknesses in its internal control

Motion to Dismiss FAC Granted

Claims

Motion to dismiss

Opinion

Grants motion to dismiss FAC with leave to amend
Complaint "lacks the organization and particularity to meet the heightened pleading standards" of the Private Securities Litigation Reform Act

Motion to Dismiss SAC Pending

Claims

Motion to dismiss

Motion to Stay Pending

Motion to stay

Lead plaintiff

Company defense

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