In Re Cylink Securities Litigation

ORDER

This matter is a consolidated class action arising out of alleged accounting misstatements. and brought on behalf of all purchasers of Cylink Corporation common stock between April 23 and November 5, 1998, against the company and three former senior officers, Fernand B Sarrat; John H Daws and Thomas L Butler. On November 6, 2000, the court entered an order dismissing without prejudice plaintiffs’ original consolidated complaint on the grounds that plaintiffs failed sufficiently to allege defendants’ state of mind as required by the Private Securities Litigation Reform Act of 1995 (PSLRA), 15 USC § 78u — 4(b)(2). See 11/6/00 Order (Doc #80).

Plaintiffs timely filed an amended consolidated complaint (ACC) on December 6, 2000. Doc # 81. Defendants again move to dismiss, but this time they have filed three separate motions. Docs #84, 85 and 88. For the reasons set forth below, the motions are DENIED IN PART and GRANTED IN PART.

I

Because this is a motion to dismiss, the following facts pertinent to the motion at bar come from the ACC.

Cylink is in the business of developing, marketing and supporting computer broadcast network security products. ACC (Doc # 81), ¶ 6. During…