Unusual L1 extension case

[L1stuck]

My L1b I-94 expires on 1st Jan 2009. Company applied for extension, got RFE, replied to it and yesterday I got an email showing current status as "Denial notice sent" . I logged on to USCIS website and saw the same status. On the very same day I got another email from USCIS showing same receipt number and case status has again changed to "Case received and pending" !!

How can a denied petition become pending again Can it be a mistake on their part ? Has anyone else had this situation ?

Also assuming that this is a mistake, and my I-94 is valid till 1st Jan, can I continue to stay until December end or am I accumulating illegal presence from day of denial ?

[itzprams]

In case of denial, your stay expires as mentioned in your current I-94. i.e. Jan'09.

[L1stuck]

Thanks itzprams
I'm still wondering about the change in case status ..