SafeNet, Inc. - Securities Class Action

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_______________
Copyright (c) 2001
Stanford Law School

SafeNet, Inc. Summary: According to a press release dated August 16, 2006, a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of plaintiff Michael J. Golde and all similarly situated purchasers or acquirers of SafeNet, Inc. (“SafeNet” or the “Company”) (NASDAQ: SFNT) common stock during the period between March 31, 2003 to May 18, 2006 (the “Class Period”). The case is captioned Michael J. Golde v. SafeNet, Inc., et al., Case No., 06-CV-6194, and is filed as a related case to a previously filed action, captioned Police & Fire Retirement System of the City of Detroit v. SafeNet, Inc., et al., Case No., 06-CV-5797, which was filed on August 1, 2006, and was assigned to the Honorable Paul A. Crotty. In addition to the claims asserted in the prior action, this action also asserts claims on behalf of the former shareholders of Rainbow Technologies, Inc. (“Rainbow”) who approved the March 2004 merger of Rainbow with SafeNet and who exchanged their shares of Rainbow for shares of SafeNet as a result of the acquisition.

According to a press release dated August 1, 2006, the Complaint alleges that all Defendants violated Section 14(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 14a-9 promulgated thereunder; that Defendants SafeNet and certain Individual Defendants violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder; that all of the Individual Defendants violated Section 20(a) of the Exchange Act.

Specifically, the Complaint alleges that during the Class Period, SafeNet and the individual defendants violated the federal securities laws by issuing false and misleading proxy statements and periodic SEC filings. The Complaint alleges that, throughout the Class Period, Defendants manipulated SafeNet's granting of stock options to provide themselves with unlawful benefits and, during the second and third quarters of 2005, Defendants also engaged in improper accounting of revenues and costs relating to certain long-term delivery contracts. In three separate recent disclosures, SafeNet has announced: (1) the need to restate financial results for the second and third quarters of 2005 arising from improper booking of costs and revenues related to its long term contracts; (2) the termination of its CFO; and (3) pending investigations by the SEC and the Office of the United States Attorney for the Southern District of New York. The price of SafeNet stock declined in response to each disclosure. On July 26, 2006, SafeNet confirmed that it would be restating its financial results for the fourth quarter of 2002, that its financial statements for the year ended 2002 should no longer be relied upon, and that it may restate other periods as well.

On February 21, 2007 the judge entered an order consolidating all related cases and appointing lead plaintiff while approving selection of lead counsel

On August 01, 2008, Consolidated Amended Class Action Complaint was filed by the plaintiffs.

On September 30, 2008, and October 1, 2008, the various defendants filed Motions to Dismiss Plaintiffs' Consolidated Amended Class Action Complaint.

On August 05, 2009, an Opinion & Order partially granted and partially denied the earlier motion to dismiss.

On September 14, 2010, the parties entered a Notice of Filing of Stipulation and Agreement of Settlement with the Court.

On October 7, 2010, a Preliminary Approval Order Providing For Notice and Hearing In Connection With Proposed Class Action Settlement was issued by the Court.

INDUSTRY CLASSIFICATION:
SIC Code: 3663
Sector: Technology
Industry: Software & Programming

COMPANY/ISSUER NAME:	SafeNet, Inc.
COMPANY/ISSUER TICKER:	SFNT
COMPANY WEBSITE:	http://www.safenet-inc.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Police & Fire Retirement System of the City of Detroit, et al. v. SafeNet, Inc., et al.

COURT: S.D. New York	DOCKET NUMBER: 06-CV-5797
JUDGE NAME: Hon. Paul A. Crotty
DATE FILED: 08/01/2006	SOURCE: Notice of Filing
CLASS PERIOD START: 03/31/2003	CLASS PERIOD END: 05/18/2006
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Bernstein Litowitz Berger & Grossmann LLP (New York, NY) 1285 Avenue of the Americas, 33rd Floor, New York, NY, 10019 (voice) 212.554.1400, (fax) 212.554.1444, blbg@blbglaw.com Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC) 1100 New York Avenue, N.W., Suite 500, West Tower, Washington, DC, 20005 (voice) 202.408.4600, (fax) 202.408.4699, lawinfo@cmht.com Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville) 58 South Service Road, Suite 200, Melville, NY, 11747 (voice) 631.367.7100, (fax) 631.367.1173, _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 3

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violations of the Federal Securities Laws Seeking Money Damages and Equitable Relief - Demand for Trial by Jury
Type: Complaint		Date on the document: 08/01/2006
U.S. District Court Civil Docket
Type: Docket		Date on the document: 10/30/2006

REFERENCE COMPLAINT

Police And Fire Retirement System Of The City Of Detroit, et al. v. SafeNet, Inc., et al.

COURT: S.D. New York	DOCKET NUMBER: 06-CV-5797
JUDGE NAME: Hon. Paul A. Crotty
DATE FILED: 08/01/2008	SOURCE: Docket
CLASS PERIOD START: 03/31/2003	CLASS PERIOD END: 05/18/2006
TYPE OF COMPLAINT: Consolidated Complaint
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Brower Piven (Baltimore) The World Trade Center-Baltimore. 401 East Pratt Street, Suite 2525, Baltimore, MD, (voice) 410.332.0030, (fax) 410.685.1300, info@browerpiven.com Federman & Sherwood (Oklahoma City) 120 North Robinson, Suite 2720, Oklahoma City, OK, 73102 (voice) 405-235-1560, (fax) , wfederman@aol.com Kahn Gauthier Swick, LLC (New Orleans) 650 Poydras St. Suite 2150, New Orleans, LA, 70130 (voice) 504.455.1400, (fax) , lewis.kahn@kglg.com Kirby McInerney & Squire LLP 830 Third Avenue 10th Floor, New York Ave, NY, 10022 (voice) 212.317.2300, (fax) , _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 4

DOCUMENTS FOR THE REFERENCE COMPLAINT
Consolidated Amended Class Action Complaint For Violations Of The Federal Securities Laws Seeking Money Damages And Equitable Relief
Type: Complaint		Date on the document: 08/01/2008
Carole D. Argo's Notice Of Motion To Dismiss
Type: Notice		Date on the document: 09/30/2008
Notice Of Defendant Kenneth A. Mueller's Motion To Dismiss Counts I-Iv
Type: Notice		Date on the document: 09/30/2008
Notice Of Motion To Dismiss The Consolidated Amended Class Action Complaint
Type: Notice		Date on the document: 09/30/2008
Notice Of Safenet, Inc.'S, Andrew E. Clark's And Shelley A. Harrison's Motion To Dismiss Plaintiffs' Consolidated Amended Class Action Complaint
Type: Notice		Date on the document: 09/30/2008
Notice Of The Compensation Committee Defendants' Motion To Dismiss The Amended Consolidated Complaint
Type: Notice		Date on the document: 09/30/2008
U.S. District Court Civil Docket
Type: Docket		Date on the document: 10/29/2008
Opinion and Order
Type: Order		Date on the document: 08/05/2009
Second Consolidated Amended Class Action Complaint For Violations Of The Federal Securities Laws Seeking Money Damages and Equitable Relief
Type: Complaint		Date on the document: 03/10/2010
Order Of Discontinuance
Type: Order		Date on the document: 08/30/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 08/30/2010
Notice of Filing of Stipulation and Agreement of Settlement
Type: Notice		Date on the document: 09/14/2010
Preliminary Approval Order Providing For Notice and Hearing In Connection With Proposed Class Action Settlement
Type: Order		Date on the document: 10/07/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 10/07/2010

OTHER DOCUMENTS
Class Action Complaint For Violations Of The Federal Securities Laws Seeking Money Damages And Equitable Relief – Demand For Trial By Jury
Case Name and/or Number: Michael J. Golde, et al. v. SafeNet, Inc., et al.
Type: Complaint		Date on the document: 08/15/2006
U.S. District Court Civil Docket
Case Name and/or Number: Berger, et al. v. Caputo, et al.
Type: Docket		Date on the document: 08/18/2006
U.S. District Court Civil Docket
Case Name and/or Number: Golde, et al. v. SafeNet, Inc., et al.
Type: Docket		Date on the document: 10/10/2006

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