ShoreTel, Inc. - Securities Class Action

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Copyright (c) 2001
Stanford Law School

ShoreTel, Inc. Summary: According to a press release dated January 16, 2008, ShoreTel, certain of its officers and directors, and the Company's underwriters are charged with including, or allowing the inclusion of, materially false and misleading statements in the Registration Statement and Prospectus issued in connection with the IPO, in violation of the Securities Act of 1933.

Specifically, the Complaint alleges that following ShoreTel's July 3, 2007 IPO -- which raised gross proceeds of at least $86.3075 million -- investors learned the truth about the Company on January 7, 2008 -- including that the problems which existed at the time of the IPO would result in extremely disappointing results for the third quarter of fiscal 2008 (the period ended December 31, 2007), including much lower than expected revenues and higher than expected costs and expenses. At that time, defendants first belatedly revealed that sales to new customers were substantially lower than expected, and that sales to existing customers was not sufficient to offset these declines. In addition, by this time, it became obvious to investors that the Company did not maintain adequate internal controls, and that a proper due diligence investigation into the Company, by the Underwriters, was not properly carried out prior to the Offering.

On this news, on January 7, 2008, over 6.0 million shares of ShoreTel traded -- over 20 times average daily trading volume -- and Company shares plummeted -- falling over 50% to close at $6.02 per share.

On April 25, 2008, by Judge Charles R. Breyer granted the motion to appoint Loren Swanson and Art Landesman as lead plaintiffs and approved Kahn Gauthier Swick, LLP appointed as lead counsel and Hagens Berman Sobol Shapiro LLP appointed liaison counsel. On June 27, 2008, the lead plaintiffs filed a Consolidated Amended Class Action Complaint. The defendants responded by filing motions to dismiss on August 26, 2008. On February 2, 2009, Judge Breyer granted the motions to dismiss with leave to amend. On March 2, 2009, the lead plaintiffs filed a Second Consolidated Amended Class Action Complaint. On June 1, 2009, the defendants filed a motion to dismiss, which was granted in part and denied in part on August 19, 2009.

On June 4, 2010, the lead plaintiffs filed a Stipulation of Dismissal of Defendant Lehman Brothers Inc. and a motion for preliminary approval of a settlement. On June 21, 2010, Judge Breyer signed the Order dismissing defendant Lehman Brothers Inc. with prejudice. On July 2, 2010, Judge Breyer granted the motion for settlement.

According to a press release dated July 16, 2010, pursuant to an Order of the United States District Court for the Northern District of California, that a hearing will be held on October 15, 2010, at 10:00 a.m., before the Honorable Charles R. Breyer at the United States Courthouse, 450 Golden Gate Ave., Courtroom 8, 19th Floor, San Francisco, CA 94102, for the purpose of determining (1) whether the proposed settlement for the sum of $3,000,000 in cash should be approved by the Court as fair, reasonable and adequate; (2) whether, after the hearing, this Litigation should be dismissed with prejudice pursuant to the terms and conditions set forth in the Stipulation of Settlement dated as of June 4, 2010; (3) whether the Plan of Allocation is fair, reasonable, and adequate and should be approved; and (4) whether the application of Lead Counsel for the payment of attorneys’ fees and reimbursement of expenses incurred in this Litigation should be approved.

On October 18, 2010, the Court issued a Final Judgment and Order dismissing this suit in its entirety with prejudice, pursuant to Rule 54(b) of the Federal Rules of Civil Procedure.

INDUSTRY CLASSIFICATION:
SIC Code: 3661
Sector: Technology
Industry: Communications Equipment

COMPANY/ISSUER NAME:	ShoreTel, Inc.
COMPANY/ISSUER TICKER:	SHOR
COMPANY WEBSITE:	http://www.shoretel.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

William Watkins, et al. v. ShoreTel, Inc., et al.

COURT: N.D. California	DOCKET NUMBER: 08-CV-00271
JUDGE NAME: Hon. Charles R. Breyer
DATE FILED: 01/15/2008	SOURCE: Notice of Filing
CLASS PERIOD START: 07/03/2007	CLASS PERIOD END: 01/07/2008
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Bramson, Plutzik, Mahler & Birkhaeuser, LLP 2125 Oak Grove Road, Suite 120, Walnut Creek, CA, 94598 (voice) 925.945.0200, (fax) 925.945-8792, info@bramsonplutzik.com Hagens Berman Sobol Shapiro LLP (Seattle) 1301 Fifth Avenue, Suite 2900, Seattle, WA, 98101 (voice) 206-623-7292, (fax) 206-623-0594, info@hagens-berman.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 Schiffrin Barroway Topaz & Kessler, LLP (Walnut Creek) 2125 Oak Grove Road, Suite 120, Walnut Creek, CA, 94598 (voice) 925.945.0200, (fax) 925.945.8792, info@sbtklaw.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 4

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint for Violations of Federal Securities Laws - Jury Trial Demanded
Type: Complaint		Date on the document: 01/15/2008
Order
Type: Order		Date on the document: 4/25/2008

REFERENCE COMPLAINT

In Re Shoretel, Inc. Securities Litigation

COURT: N.D. California	DOCKET NUMBER: 08-CV-00271
JUDGE NAME: Hon. Charles R. Breyer
DATE FILED: 02/02/2009	SOURCE: Docket
CLASS PERIOD START: 07/03/2007	CLASS PERIOD END: 01/29/2008
TYPE OF COMPLAINT: Second Amended and Consolidated
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Kahn Gauthier Swick, LLC (New Orleans) 650 Poydras St. Suite 2150, New Orleans, LA, 70130 (voice) 504.455.1400, (fax) , lewis.kahn@kglg.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
Consolidated Amended Class Action Complaint For Violations Of Federal Securities Laws
Type: Complaint		Date on the document: 6/27/2008
Stipulation And [Proposed] Order Setting Briefing Schedule And Hearing On Defendants' Motions To Dismiss Consolidated Amended Class Action Complaint
Type: Order		Date on the document: 7/10/2008
Stipulation And Order Setting Briefing Schedule And Hearing On Defendants ' Motions To Dismiss Consolidated Amended Class Action Complaint
Type: Order		Date on the document: 7/11/2008
Stipulation And Order
Type: Order		Date on the document: 8/8/2008
Stipulation And Order
Type: Order		Date on the document: 8/11/2008
Declaration Of Jennifer L. Kelly In Support Of ShoreTel Defendants' Motion To Dismiss Consolidated Amended Class Action Complaint
Type: Declaration		Date on the document: 8/26/2008
Defendants Lehman Brothers Inc. And J.P. Morgan Securities Inc.'s Notice Of Motion And Motion To Dismiss Consolidated Amended Class Action Complaint; Supporting Memorandum Of Points And Authorities
Type: Motion		Date on the document: 8/26/2008
Order Granting Motion To Dismiss Consolidated Amended Class Action Complaint
Type: Order		Date on the document: 8/26/2008
Shoretel Defendants' Notice Of Motion And Motion To Dismiss Consolidated Amended Class Action Complaint
Type: Motion		Date on the document: 8/26/2008
Defendant J.P. Morgan Securities Inc.'s Reply Memorandum Of Points And Authorities In Support Of Motion To Dismiss Consolidated Amended Class Action Complaint
Type: Memorandum		Date on the document: 01/06/2009
Proof of Service
Type: Other		Date on the document: 01/06/2009
Reply Memorandum In Support Of ShoreTel Defendants' Motion To Dismiss Consolidated Class Action Complaint
Type: Memorandum		Date on the document: 01/06/2009
Memorandum And Order
Type: Order		Date on the document: 02/02/2009
Second Consolidated Amended Class Action Complaint For Violations Of Federal Securities Laws
Type: Complaint		Date on the document: 02/02/2009
Defendants' Notice Of Motion And Motion To Dismiss Second Consolidated Amended Class Action Complaint
Type: Notice		Date on the document: 06/01/2009
Order Granting In Part And Denying In Part Motion To Dismiss Second Amended Consolidated Complaint
Type: Order		Date on the document: 08/19/2009
Declaration Of Kim E. Miller In Support Of Lead Plaintiffs’ Unopposed Motion For Preliminary Approval Of Settlement
Type: Declaration		Date on the document: 06/04/2010
Stipulation And Order Of Dismissal With Prejudice Of Lehman Brothers Inc.
Type: Order		Date on the document: 06/21/2010
Order Preliminarily Approving Settlement And Providing For Notice
Type: Order		Date on the document: 07/02/2010
Final Judgment And Order Of Dismissal With Prejudice
Type: Order		Date on the document: 10/18/2010
U.S. District Court Civil Docket
Type: Docket		Date on the document: 07/11/2011

OTHER DOCUMENTS
Class Action Complaint - Jury Trial Demanded
Case Name and/or Number: Phynice Kelley, et al. v. ShoreTel, Inc., et al.
Type: Complaint		Date on the document: 01/29/2008

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