SEATTLE, WA, May 02, 2006 (MARKET WIRE via COMTEX News Network) -- Cray Inc. (NASDAQ: CRAY) today reported that on April 27, 2006,
Judge Thomas S. Zilly of the U.S. District Court for the Western
District of Washington dismissed both the consolidated class action
litigation filed against the Company and certain of its present and
former officers and directors, as well as the consolidated derivative
litigation filed against the Company's present and former officers and
The class action against the Company and five of its present and
former officers and directors initially filed in May 2005 alleged that
the defendants had violated the securities laws by knowingly making
false or misleading statements to the public. Judge Zilly, in a
49-page opinion, found that plaintiffs failed to plead adequately
that defendants intentionally or recklessly made false statements
(acted with scienter), and failed to plead adequately that many of
the statements made by defendants were false. Judge Zilly also ruled
that plaintiffs failed to plead adequately that plaintiffs' alleged
losses were caused by some of defendants' actions. The Court gave
the class action plaintiffs 120 days to file an amended complaint
should they choose to do so.
Judge Zilly, in a separate 33-page decision, dismissed without
prejudice the derivative litigation initially filed in June 2005,
finding that plaintiffs had failed to make a demand on the Company's
Board of Directors before filing the case and failed to plead
adequately why a demand would have been futile. Judge Zilly also
dismissed with prejudice claims of breach of fiduciary duty and
unjust enrichment based on alleged insider trading and in addition
dismissed certain claims without prejudice on the additional grounds
that the plaintiffs did not allege fraud and misrepresentation with
the required specificity and failed to plead recoverable damages.
The Company and the individual defendants are pleased with the
About Cray Inc.
As the global leader in high performance computing (HPC), Cray
provides innovative supercomputing systems that enable scientists and
engineers in government, industry and academia to meet both existing
and future computational challenges. Building on years of experience
in designing, developing, marketing and servicing the world's most
advanced supercomputers, Cray offers a comprehensive portfolio of HPC
systems that deliver unrivaled sustained performance on a wide range
of applications. Go to www.cray.com for more information.
Cray is a registered trademark of Cray Inc.
SOURCE: Cray Inc.