In Re: Compaq Computer Corporation Securities Litigation 99-CV-00779

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In Re: Compaq Computer Corporation Securities Litigation 99-CV-00779 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF TEX nited States Cou rts Texas HOUSTON DIVISION herENTEREDf JEFF KURTZMAN, Individually and § APR I - 2002 on behalf of all those similarly§ situated, § Michael N. Milby, Clerk of Court Plaintiff, § VS . § CIVIL ACTION NO . H-99-77 9 COMPAQ COMPUTER CORPORATION, § CONSOLIDATED WIT H ECKARD PFEIFFER, AND EARL L . § MASON, § Defendants § DEBBIE KNOBLUTH, Individually and on behalf of all those similarly situated , Plaintiff , VS . CIVIL ACTION NO . H-99-83 6 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendant s DAVID GOLAN, Individually and § on behalf of all those similarly§ situated, § Plaintiff, § VS . § CIVIL ACTION NO . 99-86 9 COMPAQ COMPUTER CORPORATION, § ECKARD PFEIFFER, AND EARL L . § MASON, § Defendants § 4~qa,,- EMANUEL CATECHIS, Individually § and on behalf of all those § similarly situated, § Plaintiff, § § VS . § CIVIL ACTION NO . 99-88 9 § COMPAQ COMPUTER CORPORATION, § ECKARD PFEIFFER, AND EARL L . § MASON, § Defendants § SUZANNE P . GOODMAN, Individually§ and on behalf of all those § similarly situated, § § Plaintiff, § VS . § CIVIL ACTION NO . 99-93 6 § COMPAQ COMPUTER CORPORATION, § ECKARD PFEIFFER, AND EARL L . § MASON, § § Defendants § DAVID W . MAZONE, JUSTIN M . VANDERPOT, AND BEHRAH NAKHAI, Individually and on behalf of all those similarly situated , Plaintiffs , VS . CIVIL ACTION NO . 99-93 7 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendants JOSEPH COTRONEO, Individually and on behalf of all those similarly situated , Plaintiff , VS . CIVIL ACTION NO . 99-95 2 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendant s GARY GILMAN, Individually and § on behalf of all those similarly§ situated, § § Plaintiff, § § VS . § CIVIL ACTION NO . 99-96 7 § COMPAQ COMPUTER CORPORATION, § ECKARD PFEIFFER, AND EARL L . § MASON, § § Defendants § VIRGO FAMILY TRUST, by John and Barbara Virgo, on behalf of itself and all those similarly situated, Plaintiff , VS . CIVIL ACTION NO . 99-101 1 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendants - 3 - STEVEN KAMMERMAN, Individually and on behalf of all those similarly situated , Plaintiff , vs . CIVIL ACTION NO . 99-102 0 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendant s ROBERT HONMYHR, Individually and on behalf of all those similarly situated , Plaintiff , VS . CIVIL ACTION NO . 99-102 6 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendant s NEIL GILLIGAN, RICHARD J . KNEEBONE, AND RUTH L . KNEEBONE, Individually and on behalf of all those similarly situated , Plaintiffs , VS . CIVIL ACTION NO . 99-109 7 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendants -4- LAWRENCE E . BALFUS, Individually§ and on behalf of all those § similarly situated, § Plaintiff, § VS . § CIVIL ACTION NO . 99-1101 COMPAQ COMPUTER CORPORATION, § ECKARD PFEIFFER, AND EARL L . § MASON, § Defendants § HERBERT J . HAAS AND JOHN E . CLARK, Individually and on behalf of all those similarly situated, Plaintiffs , VS . CIVIL ACTION NO . 99-111 2 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendant s CRAIG HOUSTON AND DEBORAH A . DYCKMAN, Individually and on behalf of all those similarly situated, Plaintiffs , VS . CIVIL ACTION NO . 99-112 7 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendants -5- RUTH GRAIFMAN AND JULIUS GRAIFMAN, Individually and on behalf of all those similarly situated, Plaintiffs , VS . CIVIL ACTION NO . 99-113 9 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendant s HAYMAN SCHWARTZ, Individually § and on behalf of all those § similarly situated, § Plaintiff, § VS . § CIVIL ACTION NO . 99-116 1 § COMPAQ COMPUTER CORPORATION, § ECKARD PFEIFFER, EARL L . MASON, § WILLIAM D . STRECKER, AND § MICHAEL J . WINKLER, § Defendants § ALAN SMITH, Individually and on behalf of all those similarly situated, Plaintiff , VS . CIVIL ACTION NO . 99-117 4 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendants -6- ROBERT C . DANIELS, Individually and on behalf of all those similarly situated , Plaintiff , VS . CIVIL ACTION NO . 99-117 8 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, EARL L . MASON, WILLIAM D . STRECKER, AND MICHAEL J . WINKLER , Defendant s JEANNE E . LIBIT, Individually and on behalf of all those similarly situated , Plaintiff , VS . CIVIL ACTION NO . 99-120 4 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendant s WAYNE LEE, Individually and on behalf of all those similarly situated , Plaintiff , VS . CIVIL ACTION NO . 99-125 0 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendants -7- STEVEN OSTROW, Individually and on behalf of all those similarly situated , Plaintiff , VS . CIVIL ACTION NO . 99-128 1 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendant s ARNOLD SILVERSTEIN AND ROBERT STRUGO, Individually and on behalf of all those similarly situated, Plaintiffs, VS . CIVIL ACTION NO . 99-129 0 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendant s WARREN HILLS, Individually and § on behalf of those similarly § situated, § VS . § CIVIL ACTION NO . H-99-129 5 COMPAQ COMPUTER CORPORATION, § ECKARD PFEIFFER, AND EARL L . § MASON, § Defendants § -8- MILTON AND ROSLYN APPLEBAUM, Individually and on behalf of all those similarly situated , Plaintiffs , VS . CIVIL ACTION NO . 99-129 8 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendant s JULIUS TURNER, Individually and on behalf of all those similarly situated , Plaintiff , VS . CIVIL ACTION NO . 99-135 6 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendant s DAVID L . RICHARDS, Individually and on behalf of all those similarly situated , Plaintiff , VS . CIVIL ACTION NO . 99-135 9 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendants -9- AARON SOLOMON AND MICHAEL § ZELMAN, Individually and on § behalf of all those similarly § situated, § Plaintiffs, § VS . § CIVIL ACTION NO . H-99-137 6 COMPAQ COMPUTER CORPORATION, § ECKARD PFEIFFER, AND EARL L . § MASON, § § Defendants § JOSEPH PERRI, Individually and on behalf of all those similarly situated , Plaintiff , VS . CIVIL ACTION NO . 99-138 1 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendant s THERESA MALDE AND ANGEL L . ROSAS, on behalf of themselves and all others similarly situated, Plaintiff , VS . CIVIL ACTION NO . 99-141 5 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendants - 10 - PERRY DICASPRI, Individually and§ on behalf of all those § similarly situated, § § Plaintiff, § § VS . § CIVIL ACTION NO . H-99-141 7 § COMPAQ COMPUTER CORPORATION, § ECKARD PFEIFFER, EARL L . MASON, § WILLIAM D . STRECKER, RODNEY § W . SCHROCK, JOHN T . ROSE, § ENRICO PESTATORI, HANS W . § GUTSCH, MICHAEL D . HEIL, THOMAS § C . SIEKMAN, JOHN J . RANDO, AND § MICHAEL J . WINKLER, § MASON, § § Defendants § W . MARK LANIER, Individually and on behalf of all those similarly situated , Plaintiff , VS . CIVIL ACTION NO . 99-142 2 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendant s V . PINNOCK BAILEY, II AND DR . ROBERT W . BAILEY, Individually and on Behalf of All Others Similarly Situated , Plaintiffs , VS . CIVIL ACTION NO . 99-142 9 COMPAQ COMPUTER CORPORATION, ECKARD PFEIFFER, AND EARL L . MASON, Defendants - 11 - MEMORANDUM AND ORDE R Pending before the Court in the above reference d consolidated, actions alleging violations of federal securities law, brought on behalf of investors who purchased the common stock or call options, or who sold put options, of Defendant Compaq Computer Corporation ("Compaq") during the Class Period' from January 7, 1999 through April 9, 1999, or who purchased Compaq stock pursuant to or traceable to S-8 registration statements filed with Securities Exchange Commission ("SEC") on September 30, 1998 and March 17, 1998 in connection with an offering of stock to Compaq employees from January 27, 1999 through April 9, 1999, are the following motions : (1) Defendant Compaq and individual Defendant s Eckhard Pfeiffer and Earl L . Mason's renewed motion to dismiss (instrument #76) Plaintiffs' Second Consolidated and Amended Complaint ("Section 10(b) Complaint" or "Kurtzman Complaint")2 pursuant to Fed . R . Civ . P . 12(b)(6) and 9(b), and the Private Securities Litigation Reform Act ("PSLRA"), 15 U .S .C . §§ 78u-4 et secs . ; and 1 Although a class has not yet been certified, for clarity and simplicity the Court refers to the relevant time period as the "Class Period . " 2 Instrument #72 . The Kurtzman Complaint asserts claims under Section 10(b) and 20(a) of the Securities Act of 1934 and Rule 10b- 5 . - 12 - (2) Defendants' renewed motion to dismiss (instrument #79) Julius Turner's Second Amended Class Action Complaint ("Section 11 Complaint" or "Turner Complaint")3 pursuant to Fed . R . Civ . P . 12(b)(6) and 9(b), and the PSLRA, 15 U .S .C . §§ 77z-2 et seq ., and supplemental submission (#81) . In its memorandum and order of December 12, 2000 (#66) , ruling on Defendants' original motions to dismiss, the Court ordered Plaintiffs to replead in light of the law recognized and applied by this Court to the then controlling complaints . The Court hereby incorporates into this memorandum and order discussion of that law in the earlier ruling as to both the Kurtzman and the Turner complaints . Moreover, more than two years have
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