LITTLE ROCK, Ark., Nov. 12, 2005 (PRIMEZONE) -- Emerson Poynter LLP: A notice of the proposed settlement of a shareholder derivative lawsuit brought in federal court on behalf of Micromuse, Inc. (Nasdaq:MUSE) ("Micromuse") (the "Federal Lawsuit") was recently sent to the shareholders of Micromuse. Approval of the proposed settlement of the Federal Lawsuit may affect important rights of Micromuse and Micromuse shareholders including extinguishing the right to recover $189 million in insider trading proceeds on behalf of Micromuse. If you are a shareholder of Micromuse stock and wish to object to the proposed settlement, the notice of the proposed settlement requires you to do so by November 15, 2005.
Prior to the proposed settlement, the Federal Lawsuit was dismissed by the federal court in favor of a previously filed ("related") shareholder derivative lawsuit in state court (the "State Lawsuit"). Instead of filing in state court, the Federal Lawsuit was appealed and ultimately reached the proposed settlement.
The State Lawsuit was brought by plaintiffs derivatively on behalf of (and for the benefit of) Micromuse, to remedy defendants' violations of California law, including breaches of fiduciary duties, abuse of control, gross mismanagement, waste of corporate assets, unjust enrichment and violations of the California Corporations Code (including illegal insider trading) that occurred between October 1, 1999 and the present (the "Relevant Period") and that have caused substantial losses to Micromuse and other damages, such as to its reputation and goodwill. The plaintiffs in the State Lawsuit seek, among other things, to recover $189 million in illegal insider trading proceeds from defendants for Micromuse. The claim for $189 million in illegal insider trading proceeds was not brought in the Federal Lawsuit. Plaintiffs in the State Lawsuit recently defeated the defendants' attempt to dismiss the lawsuit.
The proposed settlement of the Federal Lawsuit also seeks to release all claims in the State Lawsuit, including the claim to recover $189 million in illegal insider trading proceeds, which the State Lawsuit seeks for Micromuse's benefit and recovery. If the proposed settlement is approved, Micromuse will receive no monetary compensation for the $189 million in illegal insider selling. In fact, the defendants in the Federal Lawsuit will not be required to pay anything for their wrongdoing as the proposed settlement only requires Micromuse to implement limited corporate governance changes. The plaintiff's attorneys in the Federal Lawsuit have indicated that they will seek $250,000 in attorneys' fees.
You have a right to object to the proposed settlement of the Federal Lawsuit if you are a shareholder of Micromuse. If you do not object, Micromuse's ability to recover the $189 million in insider sales may be forever foreclosed. According to the notice of settlement: To object, you must send a signed letter as outlined below, stating that you object to the proposed Settlement in Greg Sutterfield, derivatively and on behalf of Micromuse, Inc. v. Lloyd Carney, et al., Defendants and Micromuse, Inc., Nominal Defendant, Case No. C 04 0893 BZ. Be sure to include your name, address, telephone number and your signature; provide proof of current ownership and the date(s) of purchase(s) of Micromuse stock, and state the reasons why you object to the Federal Derivative Action Settlement. Your objection must be filed with the Claims Administrator at the following address and postmarked on or before November 15, 2005:
Claims Administrator Sutterfield v. Carney, et al. Objections c/o A.B. Data, Ltd. P.O. Box 170500 Milwaukee, Wisconsin, 53217 (800) 918-9012
For more information regarding the Federal and State Derivative Actions, please call:
Scott E. Poynter Emerson Poynter LLP 2228 Cottondale Ln., Suite 100 Little Rock, AR 72202 Toll Free: (800) 663-9817 epllp@emersonpoynter.com www.emersonpoynter.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.