Entrust Wins Dismissal of Class Action Lawsuit

01 Oct 2002

DALLAS -- Entrust, Inc. (ENTU) , a leading global provider of enhanced Internet security solutions and services, today announced that Entrust has won dismissal of a class action lawsuit against the Company. The lawsuit, which was filed in July 2000, alleged that the Company had made misrepresentations about its prospects from October 1999 through July 2000, in violation of the federal securities laws. Judge T. John Ward of the United States District Court for the Eastern District of Texas in Marshall, Texas, issued an order on September 30, 2002 dismissing the case.

In the order of dismissal, Judge Ward found that the plaintiffs had not, with sufficient specificity, presented any facts indicating that Entrust had made misrepresentations about its prospects. Judge Ward stated, "The plaintiffs have pleaded no specific facts that indicate at the time the alleged revenue forecasts were made, the defendants had actual knowledge of contradictory facts. The SAC (Second Amended Complaint) therefore does not state a claim for securities fraud..." Judge Ward went on to find that the Private Securities Litigation Reform Act required dismissal of the case.

Bill Conner, Entrust's president and chief executive officer, stated, "We are very pleased with this decision. The charges against the Company had no basis. We are glad the court decided to throw out the case now, rather than letting it continue to a trial that would have required further time and expense."

The court dismissed the case with prejudice; however, the order is subject to the possibility of an appeal.