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In re Critical Path, Inc. Securities Litigation
(United States District Court for the
Northern District of California)
Securities fraud class action filed on behalf of investors in Critical Path, Inc.
("Critical Path").
Plaintiffs allege that at the time Critical Path completed its
acquisition of PeerLogic, Inc. on or about September 26, 2000, the defendants were
aware that Critical Path had improperly recognized revenues and was not capable of
meeting its own sales goals and Wall Street's revenue expectations. In February 2001,
Critical Path subsequently announced that it would be restating its third and fourth
quarter results for fiscal 2000.
Settled for $17.5 million in cash and warrants to
acquire 850,000 shares of Critical Path common stock at $10 per share. Settlement
resolves two related actions - In re Critical Path, Inc. Securities Litigation and
Adam, et al. v. Critical Path, Inc. - brought by two classes of investors against
Critical Path, Inc. The classes consist of: (1) persons or entities who purchased
the common stock of Critical Path, Inc. during the period September 26, 2000 to
February 1, 2001; and (2) persons who exchanged their shares of PeerLogic for Critical
Path shares on or about September 26, 2000 pursuant to the merger of Critical Path
and PeerLogic.
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