UTStarcom, Inc. - Securities Class Action

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Copyright (c) 2001
Stanford Law School

UTStarcom, Inc. Summary: The original Complaint alleges that, throughout the Class Period, Defendants misrepresented and omitted material facts concerning the Company's backdating of stock option grants to its officers and executives. Specifically, Plaintiff alleges that at all times during the Class Period, UTStarcom represented that the exercise price of all stock options would be no less than the fair market value of the Company's common stock, measured by the publicly traded closing price for UTStarcom stock on the day of the grant.

However, in reality, options granted in 2002 were backdated so their exercise price correlated to a day on or near the day UTStarcom's stock hit a significantly low price for the year, or directly in advance of sharp increases in the price of UTStarcom stock.

The complaint further alleges that the truth regarding the Company's option granting practices was revealed on July 24, 2007. On that date, UTStarcom announced that a review of the Company's historical stock option grant practices uncovered evidence that stock option grants were backdated. As a result of these findings, the Company further announced that its previously issued financial statements for the years 2000 through 2006 should no longer be relied upon, and would be restated by at least $28 million. In response to this news, UTStarcom's share price fell 22%, from a close of $4.73 on July 23, 2007 to a close of $3.70 on July 25, 2007. The share price continued to decline thereafter.

On December 18, 2007, the Court granted James R. Bartholomew's motion to be appointed lead plaintiff. The Court also granted his motion to appoint Finkelstein Thompson LLP as lead counsel. On January 25, 2008, an Amended Complaint was filed and the defendants responded by filing a motion to dismiss the Amended Complaint. On April 14, 2008, the Court granted the defendants’ motion to dismiss the Amended Complaint with leave to amend. On May 16, 2008, the plaintiff filed a Second Amended Class Action Complaint, and the defendants again responded by filing a motion to dismiss the Second Amended Class Action Complaint on June 6, 2008. On August 21, 2008, the Court granted in part and denied in part defendants’ motion to dismiss plaintiff’s complaint. On November 17, 2008, one defendant filed a motion to dismiss the Plaintiff's Second Amended Complaint, which was later denied by the Court Order dated February 2, 2009.

On March 16, 2009, the plaintiff filed a motion to certify the class. On May 14, 2009, the plaintiff filed a motion for preliminary approval of the settlement. Based on a thorough understanding of the facts and the law, the parties agreed to the proposed Settlement which consists of $9,500,000 in cash. On June 1, 2009, Judge Illston granted the motion for preliminary approval of the class settlement.

On September 29, 2009, Judgment was entered. The settlement was approved and the action was dismissed with prejudice. On October 30, 2009, Judge Illston granted the motion for attorney's fees and expenses. On November 8, 2010, Judge Illston signed the order authorizing the distribution of the settlement funds.

INDUSTRY CLASSIFICATION:
SIC Code: 3669
Sector: Services
Industry: Communications Services

COMPANY/ISSUER NAME:	UTStarcom, Inc.
COMPANY/ISSUER TICKER:	UTSI
COMPANY WEBSITE:	http://www.utstar.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Peter Rudolph, et al. v. UTStarcom, Inc., et al.

COURT: N.D. California	DOCKET NUMBER: 07-CV-04578
JUDGE NAME: Hon. Susan Illston
DATE FILED: 09/04/2007	SOURCE: Notice of Filing
CLASS PERIOD START: 07/24/2002	CLASS PERIOD END: 09/04/2007
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Finkelstein Thompson LLP (Washington D.C.) The Duvall Foundry, 1050 30th Street, N.W., Washington, DC, 20007 (voice) 202.337.8000, (fax) 202.337.8090, contact@finkelsteinthompson.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violations of the Federal Securities Laws - Demand for Jury Trial
Type: Complaint		Date on the document: 09/04/2007
Order Appointing Lead Plaintiff And Lead Counsel
Type: Order		Date on the document: 12/18/2007

REFERENCE COMPLAINT

Peter Rudolph, et al. v. UTStarcom, Inc. et al.

COURT: N.D. California	DOCKET NUMBER: 07-CV-04578
JUDGE NAME: Hon. Susan Illston
DATE FILED: 05/16/2008	SOURCE: Docket
CLASS PERIOD START: 09/04/2002	CLASS PERIOD END: 07/24/2007
TYPE OF COMPLAINT: Second Amended
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Finkelstein Thompson LLP (Washington D.C.) The Duvall Foundry, 1050 30th Street, N.W., Washington, DC, 20007 (voice) 202.337.8000, (fax) 202.337.8090, contact@finkelsteinthompson.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
Amended Class Action Complaint
Type: Complaint		Date on the document: 01/25/2008
Order Granting Defendants' Motion To Dismiss Complaint
Type: Order		Date on the document: 04/14/2008
Order Granting In Part And Denying In Part Defendants' Motion To Dismiss Complaint
Type: Order		Date on the document: 08/21/2008
Order Denying Defendant Ying Wu's Motion To Dismiss
Type: Order		Date on the document: 02/02/2009
Notice Of Unopposed Motion And Unopposed Motion Of Lead Plaintiff For An Order Granting Preliminary Approval Of Class Action Settlement And Directing Dissemination Of Notice To The Class; Memorandum Of Points And Authorities In Support Thereof
Type: Motion		Date on the document: 05/14/2009
Joint Stipulation And Order Setting May 29, 2009 Hearing Date On Lead Plaintiff’s Unopposed Motion For An Order Granting Preliminary Approval Of Class Action Settlement And Directing Dissemination Of Notice To Class
Type: Order		Date on the document: 05/15/2009
Amended Order Granting Preliminary Approval Of Settlement And Directing Dissemination Of Notice To Class
Type: Order		Date on the document: 05/29/2009
Order Granting Attorney's Fees And Reimbursement Of Expenses
Type: Order Approving AF&E		Date on the document: 10/30/2009
Amended [Proposed] Final Judgment And Order Of Dismissal With Prejudice
Type: Order		Date on the document: 09/30/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 11/08/2010

OTHER DOCUMENTS

Case Name and/or Number:
Type:		Date on the document:

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