Re: 9/7/00 - [TTN] Titan Corporation Obtains Court Order Preventing Destruction of Documents That May Reveal Identity of Unscrupulous Short Sellers Court Also Authorizes Subpoenas to Message Boards To Turn Over True Names of Anonymous Posters
Titan Corporation Obtains Court Order Preventing Destruction of Documents That May Reveal Identity of Unscrupulous Short Sellers Court Also Authorizes Subpoenas to Message Boards To Turn Over True Names of Anonymous Posters
SAN DIEGO, Sep 7, 2000 /PRNewswire via COMTEX/ -- The Titan Corporation (NYSE: TTN chart, msgs) announced today that the Los Angeles Superior Court granted Titan Corporation's application for an order for preservation of records that may reveal the identity of those who sold short Titan stock and anonymously distributed false reports about the corporation. In its lawsuit filed August 30, 2000 to stop a scheme by unscrupulous short sellers to drive down the price of Titan stock from $44 3/4 a share to $21 a share, Titan claims the market loss in the value of its shares was a staggering 50% or $1.3 billion between the time of June 20, 2000 and August 22, 2000. The suit seeks damages and an injunction against further securities manipulation.
Gene W. Ray, Chairman, President, and CEO of Titan said, "We will identify and seek redress from those involved in the short sellers' scheme to hide behind screen names and distribute anonymous and false reports through the mail. Titan is a technology company with employees and shareholders to protect. We ask all stock investors to support Titan in our quest to ensure integrity in the financial markets."
Titan is represented by Marshall B. Grossman and Michael A. Sherman of the Los Angeles law firm Alschuler Grossman Stein & Kahan LLP. Mr. Grossman stated, "This lawsuit sends a message to those short sellers who we believe conspired to drive down the price of Titan's shares. We will identify and prosecute those responsible for manipulating the markets and driving down the price of Titan's stock."
The court ordered twenty-six named individuals and investment firms not to destroy any documents or tamper with computer files that may provide leads to the identity of short sellers who sold Titan stock while distributing false information.
Today's order is designed to preserve documents which may reveal the identity of those responsible for past manipulation of Titan's stock. The court order applies to all writings, original documents, copies of documents, telephone bills, telephone logs, mechanical or electronic data, retrievable data (whether carded, taped coded, electronstatically or electromagnetically recorded, or otherwise), or other data compilation from which information can be obtained, including computer storage tapes, computer storage cards or disks, storage memory devices on hard drives, floppy disc drives, zip drives, any archival tape backups, personal computer memory storage devices, computer network memory storage devices, and memory storage devices or faxes and compact discs.
Upon the filing of the Titan lawsuit on August 30, 2000, the court issued a subpoena requiring Yahoo to turn over its records showing the identity of those individuals who posted hostile messages about Titan over the Internet during the period of heavy short selling. Yahoo appeared for deposition taken in San Francisco on September 6, 2000, and turned over their records pertaining to those who posted anonymous messages about Titan on Yahoo message boards. Today, the Court issued a further order authorizing subpoenas to AOL, Go2Net.com, Clear Station, Inc., Raging Bull and The Motley Fool, similar to the subpoena served on Yahoo. Titan's complaint and the orders issued by the Los Angeles Superior Court can be found at Titan.com.
Headquartered in San Diego, California, The Titan Corporation, an information technology company, creates, builds and launches technology-based businesses, offering innovative technical solutions. Three of Titan's four core businesses develop and deploy communications and information technology solutions and services. In addition, Titan markets the leading technology for the electronic pasteurization of food products and is continually identifying promising technologies suitable for commercialization. Titan has 7,600 employees, annualized sales of approximately $1 billion and total backlog in excess of $2.2 billion.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995. The statements contained in this release which are not historical facts, including our ability to identify the short sellers and prove the material allegations of our complaint as well as our ability to obtain remedies against the defendants, are forward looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by forward-looking statements. These risks and uncertainties include the risks inherent in any litigation and other risks described in the Company's Securities and Exchange Commission filings.
Source: The Titan Corporation
Contact:
Robin Gerber of RGA, Inc., 310-209-5678, ext. 222, or cell,
310-413-2801, rgerber@rgacorp.com; or Wil Williams, VP Corporate
Communications of Titan, 858-552-9724, wwilliams@titan.com
URL: titan.com
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