Harris Stratex Networks, Inc. - Securities Class Action

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Copyright (c) 2001
Stanford Law School

Harris Stratex Networks, Inc. Summary: The action seeks to pursue remedies under the Securities Act of 1933 and the Securities Exchange Act of 1934. Specifically, the complaint alleges that Defendants issued materially false and misleading statements about its financial condition prior to and following its formation in early 2007 through the date of the merger of Stratex Networks, Inc. and the Harris Microwave Communications Division.

On July 30, 2008, the Company announced that it had discovered accounting errors which rendered its previously issued financial statements to be incorrect. According to the announcement, the Company will restate earnings reports from 2005 through the present. The Company reported these accounting errors will cut previously reported pre-tax income by $18 million to $25 million. As a result of the restatement, the Company announced that its prior financial statements for the first three quarters of fiscal 2008 and the fiscal years 2005 through 2007 should no longer be relied upon. Harris Stratex's share price fell in reaction to the announcement, falling from $11.24 to $7.35 per share -- a 34.61% decline in value.

On December 4, 2008, the plaintiff in the first filed complaint filed a Notice of Voluntary Dismissal. The case is continuing in two actions substantially similar to this action, captioned Dutton v. Harris Stratex Networks, Inc., 08-CV-00755 (D. Del. filed Oct. 6, 2008) and Kleinmann v. Harris Stratex Networks, Inc., 08 Civ. 6171 (D. Del. filed Oct. 30, 2008).

On June 5, 2009, Judge Joseph J. Farnan, Jr. granted the motion to consolidate the two actions under Civil Action No. 08-755-JJF. The Rudman Investors’ motion to be appointed lead plaintiff was granted. Kirby McInerney, LLP, was approved as lead counsel. On July 29, 2009, the lead plaintiff filed a Consolidated Class Action Complaint. On September 28 and October 9, 2009, the defendants responded by filing several motions to dismiss the Consolidated Class Action Complaint.

On July 27, 2010, the Court entered the Order signed by Joseph J. Farnan, Jr. granting the motion to dismiss the Consolidated Class Action Complaint. According to the Order, the Motion To Dismiss The Consolidated Class Action Complaint (D.I. 56) filed by Defendant Ernst & Young is granted; the Motion To Dismiss (D.I. 60) filed by Defendant Harris Corporation is denied; and the Motion To Dismiss (D.I. 61) filed by Defendants Harris Stratex Networks, Inc., and the individual defendants is granted as it relates to a Section 10(b)(5) claim based on the January 30, 2008 statements and denied in all other respects.

On December 10, 2010, the plaintiffs filed a motion to certify the class. On June 1, 2011, a Motion for Preliminary Approval of the Settlement was filed. According to the Stipulation of Settlement, the proposed settlement will settle claims with the company and individual defendants. The settlement fund is in the amount of $8.9 million in cash. The settlement was preliminarily approved on June 21, 2011. The Settlement Fairness Hearing was set for September 16, 2011.

The settlement was approved by the Final Judgement and Order of Dismissal with Prejudice entered on October 11, 2011. Attorneys' fees and expenses were awarded in the amount of 25% of the settlement fund and $147,160.34, respectively. The plan of allocation was also approved. The case is now closed.

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

COMPANY/ISSUER NAME:	Harris Stratex Networks, Inc.
COMPANY/ISSUER TICKER:	HSTX
COMPANY WEBSITE:	http://www.harrisstratex.com

FIRST IDENTIFIED COMPLAINT IN THE DATABASE

Norfolk County Retirement System, et al. v. Harris Stratex Networks, Inc., et al.

COURT: D. Delaware	DOCKET NUMBER: 08-CV-00578
JUDGE NAME: Hon. Joseph J. Farnan, Jr.
DATE FILED: 09/15/2008	SOURCE:
CLASS PERIOD START: 01/29/2007	CLASS PERIOD END: 07/30/2008
TYPE OF COMPLAINT: Complaint (Unamended and Unconsolidated)
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Finger & Slanina, LLC (former) One Commerce Center; 1201 Orange Street, Suite 725, Wilmington, DE, 19801-1155 (voice) 302.884.6766, (fax) , Labaton Sucharow LLP 140 Broadway, New York, NY, 10005 (voice) 212.907.0700, (fax) 212.818.0477, info@labaton.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 2

DOCUMENTS FOR THE FIRST IDENTIFIED COMPLAINT
Class Action Complaint For Violation Of Federal Securities Laws
Type: Complaint		Date on the document: 09/15/2008
Notice Of Voluntary Dismissal
Type: Notice		Date on the document: 12/04/2008
U.S. District Court Civil Docket
Type: Docket		Date on the document: 01/15/2009

REFERENCE COMPLAINT

Karen Dutton, et al. v. Harris Stratex Networks, Inc., et al.

COURT: D. Delaware	DOCKET NUMBER: 08-CV-00755
JUDGE NAME:
DATE FILED: 07/29/2009	SOURCE:
CLASS PERIOD START: 01/29/2007	CLASS PERIOD END: 07/30/2008
TYPE OF COMPLAINT: Consolidated Complaint
PLAINTIFF FIRMS NAMED IN COMPLAINT:
Becker & Poliakoff, PA (Fort Lauderdale) P.O. Box 9057, Fort Lauderdale, FL, 33310-9057 (voice) 954.987.7550, (fax) 954.985.4176, info@becker-poliakoff.com _____________________________________________ TOTAL NUMBER OF PLAINTIFF FIRMS: 1

DOCUMENTS FOR THE REFERENCE COMPLAINT
Class Action Complaint - Jury Trial Demanded
Type: Complaint		Date on the document: 10/06/2008
Rudman Investors’ Motion For Consolidation, Appointment As Lead Plaintiffs And For Approval Of Selection Of Counsel
Type: Order of Consolidation		Date on the document: 11/14/2008
Memorandum Order
Type: Order of Consolidation		Date on the document: 06/05/2009
Consolidated Class Action Complaint
Type: Complaint		Date on the document: 07/29/2009
Order
Type: Order		Date on the document: 07/22/2010
Declaration Of Ira M. Press In Support Of Motion For Preliminary Approval Of The Settlement
Type: Declaration		Date on the document: 06/01/2011
Amended Order Preliminarily Approving Settlement And Providing For Notice
Type: Other		Date on the document: 06/22/2011
Final Judgment and Order of Dismissal with Prejudice
Type: Other		Date on the document: 10/11/2011
U.S. District Court Civil Docket
Type: Docket		Date on the document: 10/11/2011

OTHER DOCUMENTS
Class Action Complaint For Violations Of Federal Securities Laws
Case Name and/or Number: Jack Kleinmann , et al. v. Harris Stratex Networks, Inc., et al.
Type: Complaint		Date on the document: 10/30/2008

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