A class action lawsuit was filed in the U.S. District Court for the Central District of California on behalf of purchasers of FileNET Corporation (NASDAQ:FILE) common stock between April 16, 1998 and October 7, 1998 (the "Class Period") inclusive.

FileNET develops, markets and services integrated document management software products designed for managing information and enhancing enterprise productivity. FileNET's products and services are marketed in more than 60 countries through a direct sales force as well as by value-added resellers, distributors and systems integrators under FileNET's ValueNET(R) partner program.

The defendants include FileNET 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: issuing false and misleading statements regarding strong sales of FileNet's existing Panagon products and the strong continuing growth of the document management market.

October 2006 the company was acquired by IBM for about $1.6 billion.

Update

This case has been settled. The Claims Administrator for this litigation is Gilardi & Co. LLC. If you would like further information about the settlement or if you would like to download the Notice of Pendency and Settlement of Class Action, please go to www.gilardi.com or call (415) 461-0410.