A class action lawsuit has been filed in the United States District Court for the Southern District of Texas on behalf of purchasers of BMC Software, Inc.(NASDAQ: BMCS) securities between April 16, 1998 and February 25, 1999, inclusive (the "Class Period"), for violations of federal securities laws. Defendants include BMC Software, Inc. and certain of its officers and directors. The Complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5) by, among other things: misrepresenting the current and future financial condition of BMC Software, Inc. by issuing false and misleading financial statements throughout the Class Period. Specifically, the complaint alleges that BMC Software, Inc. issued false and misleading statements concerning its financial results for its fiscal year 1998, ending on March 31, 1998, as well as its financial results for the first three quarters for fiscal 1999, ending on June 30, 1998, September 30, 1998, and December 31, 1998, respectively. During the same time period, the Complaint further alleges that Company insiders sold 216,000 shares of their personal BMC holdings at artificially inflated prices, for proceeds in excess of $10,815,000.

Update

On October 1, 2001, this case was dismissed by order of the court. If you have any further questions, please feel free to contact us.