Carnegie International Files to Dismiss Shareholder Suit, Prepares to File Against Grant Thornton LLP; Company Comments on Shareholder Suit Against Grant Thornton.Business & Technology Editors BALTIMORE--(BUSINESS WIRE)--May 5, 2000 Carnegie International Corporation said today that it will file a Motion to Dismiss the first amended Consolidated Complaint (filed March 21, 2000) brought against the company and several of its officers and directors by certain of its shareholders. Carnegie said that, among other issues, the Motion to Dismiss states "the consolidated complaint fails to state a cause of action upon which relief may be granted, and fails to state with particularity par·tic·u·lar·i·ty n. pl. par·tic·u·lar·i·ties 1. The quality or state of being particular rather than general. 2. facts giving rise to a strong inference that any defendant acted with the state of mind required to prove a violation of ss. 10(b) of the Securities Exchange Act of 1934 and the Securities Exchange Commission Rule 10-B; it fails to state with particularity each statement alleged to be misleading or to set forth in detail the reasons why each such statement is supposedly misleading; and, to the extent that the Consolidated Complaint makes allegations based upon the plaintiff's information and belief, it fails to state with particularity the facts on which any of those beliefs are purportedly formed." The company noted that litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. is always subject to uncertainties, which are outside of its control. Hence, although it believes its Motion to Dismiss the Consolidated Complaint makes a compelling argument, it cannot, with any reasonable degree of certainty, state whether it is likely or unlikely to be granted. The complaint may be found in its entirety at Carnegie's Web site (www.carnegieint.com). Actions vs. Grant Thornton Carnegie also announced that it has retained the law firms of William H. Murphy, Jr., and Associates P.A. of Baltimore, and Gary, Williams, Parenti, Finney, Lewis, McManus, Watson and Sperando of Stuart, Florida, who are preparing to file suit against Grant Thornton LLP  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . , the company's former independent auditor Independent Auditor An external auditor with a certified public accounting designation that qualifies him or her to provide an auditor's report. Notes: These auditors aren't affiliated with the company being audited. , as well as several Grant Thornton partners and employees. The company also stated that certain of its shareholders have filed a class action complaint against Grant Thornton, LLP LLP - Lower Layer Protocol . The suit was filed on April 28, 2000, in the United States District Court for the District of Maryland The United States District Court for the District of Maryland is the Federal district court whose jurisdiction is the state of Maryland. Notable judges in this district include William Paca, a signer of the United States Declaration of Independence. , and alleges that Grant Thornton violated Federal securities laws while serving as Carnegie's independent auditor. The suit further alleges that the company's financial statements for fiscal years 1997 and 1998, prepared by Grant Thornton and which received unqualified opinions from Grant Thornton, were not in compliance with Generally Accepted Accounting Principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ), as Grant Thornton had opined. Carnegie International Corporation is an Internet support and computer telephony holding company with specialization in telecommunications products, services and distribution, and in E-Commerce and EDI (Electronic Data Interchange) The electronic communication of business transactions, such as orders, confirmations and invoices, between organizations. Third parties provide EDI services that enable organizations with different equipment to connect. . Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 provides a "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " for forward-looking statements. Certain information included in this Press Release (as well as information in oral statements or other written statements made or to be made by Carnegie International Corporation) contain statements that are forward-looking, such as statements relating to the future anticipated direction of the telecommunications industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth, and potential contracts. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future, and accordingly, such results may differ from those expressed in any forward-looking statements made by or on behalf of Carnegie International Corporation. These risks and uncertainties included, but are not limited to, those relating to development and expansion activities, dependence on existing management, financing activities, domestic and global economic conditions, change in Federal or state laws, and market competition factors. |
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