As previously reported in the Form 10-Q for the quarterly period ended June 30, 2005 (see Item 1 – Legal Proceedings), Telos Corporation, its subsidiary Xacta Corporation, and certain individual officers were named in an amended complaint filed by SecureInfo Corporation on June 16, 2005. On September 9, 2005 the U.S. District Court for the Eastern District of Virginia granted Telos’ Motion to Dismiss by dismissing 9 of the 12 counts in the amended complaint: Counts I, II and III (Computer Fraud and Abuse Act), V (fraud and deceit), VI (conspiracy to fraudulently obtain trade secrets by deceit and tortuous interference with contract), VII (common law tortuous interference with contract), VIII (Racketeer Influenced Corrupt Organization Act – RICO), X (Virginia Computer Crimes Act), and XII (common law trespass to chattels). Accordingly all counts against John B. Wood, Chairman and CEO of Telos Corporation, were dismissed and substantially all of the counts were dismissed against the other individual officers.
In addition, on September 21, 2005, plaintiff SecureInfo Corporation withdrew its Motion for a Preliminary Injunction. Accordingly, the future status of the 3 pending counts is scheduled to be determined at a pretrial hearing on October 12, 2005. |
