SECURITIES FRAUD
 

Suit Filed Against Atlantic Data Services, Inc

On May 8, 2003, the firm of Shapiro Haber & Urmy LLP, representing A. David Maroko and Ronald A. Biloon Rollover IRA, filed a class action suit against Atlantic Data Services, Inc. ("ADS") and certain members of its board of directors, which, on July 16, 2003 was transferred to and accepted into the Business Litigation Section in Suffolk County.

The class consists of all record and beneficial holders of ADS common stock during the period May 5, 2003 through and including the effective date of the Transaction whereby defendants Robert W. Howe (“Howe”), William H. Gallagher (“Gallagher”) and Lee M. Kennedy (“Kennedy”), together with affiliates of General Atlantic Partners, LLC (“GAP”)(collectively, the “Buyout Group”), sought to acquire sole ownership of ADS.

The complaint alleges an unlawful scheme and plan by Atlantic Data Services, Inc. (“ADSC” or the “Company”) and certain officers and directors of ADSC to acquire the remaining ownership of ADSC in a going-private transaction (the “Acquisition”) for grossly inadequate consideration and without full and complete disclosure of all material information, in breach of Defendants’ fiduciary duties.

Case Status:  Settled.