ClearOne Communications, Inc. - Securities Class Action

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_______________
Copyright (c) 2001
Stanford Law School

ClearOne Communications, Inc. Conclusion: According to the docket, a Stipulation for Partial Settlement was entered on December 8, 2003. On March 17, 2004, the Court entered the Orders granting the motion for attorney fees and reimbursement of expense and granting the motion for Final Approval of Partial Settlement, Class Certification, and Plan of Allocation. The Court further entered the Order and Judgment dismissing the case against all defendants except Ernst & Young per the settlement agreement. The case was later dismissed with prejudice as to defendant Ernst & Young.

In a Press Release dated 12/18/03, ClearOne Communications, Inc. has received preliminary court approval of a settlement, and the hearing to consider final approval of the settlement is scheduled for 3/16/04.

In a Press Release dated 12/4/03, the terms of the settlement, which are subject to court approval, require the company to pay the shareholder class $5 million in cash and to transfer to them 1.2 million shares of the company's common stock. The cash payment is to be made in two equal installments of $2.5 million, the first of which has already been made and the second of which is due no later than January 15, 2005.

The originalComplaint charges ClearOne and certain of its executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements concerning ClearOne's revenue and earnings caused ClearOne's stock price to become artificially inflated, inflicting damages on investors. The Complaint alleges that, in order to inflate the price of ClearOne's stock, defendants caused the Company to falsely report its financial results during the Class Period through improper revenue recognition practices, including recognizing revenue for shipments to distributors even though the distributors had the right to return or exchange unsold goods. On January 15, 2003, the last day of the Class Period, the Securities and Exchange Commission filed a federal lawsuit alleging that defendants violated numerous federal securities laws, primarily through a program of "channel stuffing" - shipping large amounts of inventory to the company's distributors with the understanding that the distributors did not have to pay for these products until the distributors resold the products, and that in some instances the distributors were given the right to return or exchange products the distributors were unable to sell.

INDUSTRY CLASSIFICATION:
SIC Code: 3663
Sector: Technology
Industry: Communications Equipment

COMPANY/ISSUER NAME:	ClearOne Communications, Inc.
COMPANY/ISSUER TICKER:	CLRO
COMPANY WEBSITE:	http://www.gentner.com/

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Anderton, et al. v. ClearOne Communications, Inc., et al.

COURT: D. Utah	DOCKET NUMBER: 03-CV-0062
JUDGE NAME: Hon. Paul G. Cassell
DATE FILED: 1/16/2003	SOURCE: Business Wires
CLASS PERIOD START: 1/1/2001	CLASS PERIOD END: 1/15/2003
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Abbey Gardy, LLP 212 East 39th Street, New York, NY, 10016 (voice) 212.889.3700, (fax) , info@abbeygardy.com Bernstein Liebhard & Lifshitz LLP (New York, NY) 10 E. 40th Street, 22nd Floor, New York, NY, 10016 (voice) 800.217.1522, (fax) , info@bernlieb.com Cauley Geller Bowman Coates & Rudman LLP (Little Rock, AR) P.O. Box 25438, Little Rock, AR, 72221-5438 (voice) 501.312.8500, (fax) 501.312.8505, Faruqi & Faruqi LLP 320 East 39th Street, New York, NY, 10016 (voice) 212.983.9330, (fax) 212.983.9331, Nfaruqi@faruqilaw.com Glancy and Binkow 1801 Avenue of the Stars, suite 311, Los Angeles, CA, 90067 (voice) 310-201-9150, (fax) , info@glancylaw.com Henricksen & Henricksen , , , (voice) , (fax) , Kirby McInerney & Squire LLP 830 Third Avenue 10th Floor, New York Ave, NY, 10022 (voice) 212.317.2300, (fax) , Law Offices of Charles J. Piven, P.A. World Trade Center-Baltimore,401 East Pratt Suite 2525, Baltimore, MD, 21202 (voice) 410.332.0030, (fax) , pivenlaw@erols.com Spector Roseman & Kodroff (San Diego) 1818 Market Street, Suite 2500, Philadelphia, PA, 19103 (voice) 215.496.0300, (fax) 215.496.6611, Weiss & Yourman (New York, NY) The French Building, 551 Fifth Ave., Suite 1600, New York, NY, 10126 (voice) 212.682.3025, (fax) 212.682.3010, info@wyca.com Wolf Haldenstein Adler Freeman & Herz LLP 270 Madison Avenue, New York, NY, 10016 (voice) 212.545.4600, (fax) 212.686.0114, newyork@whafh.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 11

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violations of the Federal Securities Law
Type: Complaint		Date on the document: 01/16/2003

REFERENCE COMPLAINT

Deborah Anderton, et al. v. ClearOne Communications, Inc., et al.

COURT: D. Utah	DOCKET NUMBER: 03-CV-0062
JUDGE NAME: Hon. Paul G. Cassell
DATE FILED: 6/30/2003	SOURCE: Business Wires
CLASS PERIOD START: 4/17/2001	CLASS PERIOD END: 1/15/2003
TYPE OF COMPLAINT: Consolidated and/or Amended
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Kaplan Fox & Kilsheimer, LLP (New York, NY) 805 Third Avenue, 22nd Floor, New York, NY, 10022 (voice) 212.687.1980, (fax) 212.687.7714, info@kaplanfox.com Milberg Weiss Bershad Hynes & Lerach LLP (New York, NY) One Pennsylvania Plaza, New York, NY, 10119-1065 (voice) 212.594.5300, (fax) , _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
Order Appointing Lead Plaintiff, Appointing Lead Counsel, Sealing Fee Schedule And Setting Briefing Schedule
Type: Order		Date on the document: 5/1/2003
Consolidated Complaint for Violations of the Federal Securities Laws
Type: Complaint		Date on the document: 06/30/2003
Notice Of Pendency And Proposed Partial Settlement Of Class Action
Type: Settlement		Date on the document: 12/12/2003
[Proposed] Order Preliminarily Approving Settlement And Providing For Notice
Type: Order		Date on the document: 12/12/2003
Stipulation And [Proposed] Order Exchanging Exhibits To Stipulation Of Settlement
Type: Order		Date on the document: 12/12/2003
Final Judgment And Order Of Dismissal With Prejudice
Type: Order		Date on the document: 03/16/2004
Order Approving Plan Of Allocation Of Settlement Proceeds
Type: Order		Date on the document: 03/16/2004
U.S. District Court Civil Docket
Type: Docket		Date on the document: 05/23/2005

OTHER DOCUMENTS
Class Action Complaint for Violations of the Federal Securities Law
Case Name and/or Number: John Robinson
Type: Complaint		Date on the document: 01/23/2003

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