FOR IMMEDIATE RELEASE CONTACT CONTACT
January 18, 2001 Larry Alves
Chief Financial Officer
813.226.2600 ext 1019
JUDGE DISMISSES CLASS ACTION LAWSUIT AGAINST POWERCERV
TAMPA, Fla. - PowerCerv Corporation (Nasdaq: PCRV) today announced that Judge
Steven D. Merryday of the United States District Court, Middle District of
Florida, granted the Defendants' motions to dismiss the July 1997 class action
complaint filed by J. Conrad Lifsey (LIFSEY V. ROSS, ET AL.). Explaining his
decision, Judge Merryday held "the complaint notably lacks the type of
particularized factual allegations required by Fed. R. Civ. P. 9(b), the Reform
Act, and the controlling case law...Therefore, upon consideration, the Court
finds that the plaintiffs' complaint is insufficient as a matter of law to state
a claim under the relevant sections of the federal securities laws as
Marc Fratello, President and CEO of PowerCerv, said, "This ruling is welcomed
vindication for PowerCerv and all of its officers and directors. This cloud has
impacted our ability to gain customers, partners and investors - and it has now
been lifted. I am pleased that the Court has dismissed this action."
According to the Order, plaintiffs have until February 16, 2001 to file an
amended complaint. However, the Order also expresses "substantial doubt" that
the plaintiff will be able to properly state a claim. Finally, the Order
instructs that a failure to file an amended complaint by February 16, 2001 shall
result in the dismissal of this action without further notice. However, the
Order states, "Although the Court harbors substantial doubt that the plaintiffs
have sufficient facts at their disposal to properly state a claim, it cannot yet
be said that allowing an amended complaint would be futile."
Kimberley Robbins, General Counsel for PowerCerv, said, "While the plaintiffs
may choose to file an amended complaint, we believe, as did Judge Merryday, that
they will come up with no new facts to substantiate the claim. However, should
they replead we will continue to contest the matter vigorously."
PowerCerv provides Integrated Enterprise Response to companies around the globe.
Featuring fully integrated enterprise applications with innovative e-commerce
capabilities, PowerCerv solutions enable companies to completely integrate and
extend the management of front-office and back-office operations. With
Integrated Enterprise Response, companies extend their enterprise operations
across the virtual supply chain and successfully respond to customers,
suppliers, partners and employees around the world. For more information contact
PowerCerv at (813) 226-2600, fax (813) 222-0886 or visit www.powercerv.com.
Statements contained in this press release that are not historical fact are
"forward looking statements" and/or statements of opinion. There can be no
guarantees as to how this matter will eventually be resolved or affect it may
have on the future performance of the company. Performance is subject to certain
risks uncertainties and assumptions that are difficult to predict.
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400 N Ashley Drive o Suite 2700 o Tampa, Florida o 33602 o 813.226.2600
o 813.222.0886 o www.powercerv.com
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