Case Page

 

Case Status:    SETTLED
On or around 07/28/2003 (Date of order of final judgment)

Filing Date: November 06, 1998

According to the docket posted, on July 28, 2003, the Court entered the Order by U.S. District Judge Vaughn R. Walker granting the motion for final approval of the class settlement. The Plaintiffs’ motion for expenses and sanctions was terminated, and the Plaintiffs' motion for an order authorizing distribution of net settlement fund to class members was granted. That same day, Final Judgment was entered, and the case terminated.

As reported by the Company’s FORM 10-Q/A for the quarterly period ended September 29, 2002, on October 16, 2002, Cylink entered into an agreement with all plaintiffs to settle the class action for $6.2 million. The settlement amount will be paid entirely from insurance proceeds under insurance policies held by Cylink. The settlement agreement is subject to approval by the United States District Court for the Northern District of California, and Cylink expects that the settlement agreement will be approved in March 2003.

Several securities class action complaints were filed against Cylink and certain of its current and former directors and officers in federal courts in California. These complaints allege, among other things, that Cylink's previously issued financial statements were materially false and misleading and that the defendants knew or should have known that these financial statements caused its common stock price to rise artificially. The complaints also allege violations of Section 10(b) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder, and Section 20 of the Exchange Act. The securities class action lawsuits have been ordered consolidated into a single action pending in the United States District Court for the Northern District of California, captioned In Re Cylink Securities Litigation, No. C98-4292 (VRW).

The original Complaint alleges that during the Class Period defendants continuously disseminated materially false and misleading statements regarding the Company's current financial performance and business conditions. Specifically, the defendants published false and misleading financial statements, including financial statements that overstated first quarter 1998 revenue by approximately $5.0 million and second quarter 1998 revenue by approximately $6.7 million. The defendants also failed to disclose that there were substantial operating losses for the first and second quarter 1998, and that the Company's accounting practices throughout the Class Period failed to conform with generally accepted accounting principles ("GAAP").

COMPANY INFORMATION:

Sector: Services
Industry: Security Systems & Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CYLK
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: N.D. California
DOCKET #: 98-CV-04292
JUDGE: Hon. Vaughn R. Walker
DATE FILED: 11/06/1998
CLASS PERIOD START: 04/01/1998
CLASS PERIOD END: 11/05/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Stull, Stull & Brody (Los Angeles)
    10940 Wilshire Boulevard - Suite 2300, Stull, Stull & Brody (Los Angeles), CA 90024
    310.209.2468 ·
  2. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  3. Weiss & Yourman (Los Angeles, CA)
    10940 Wilshire Blvd - 24th Floor, Weiss & Yourman (Los Angeles, CA), CA 90024
    310.208.2800 310.209.2348 · info@wyca.com
  4. Weiss & Yourman (New York, NY)
    The French Building, 551 Fifth Ave., Suite 1600, Weiss & Yourman (New York, NY), NY 10126
    212.682.3025 212.682.3010 · info@wyca.com
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 98-CV-04292
JUDGE: Hon. Vaughn R. Walker
DATE FILED: 12/06/2000
CLASS PERIOD START: 04/01/1998
CLASS PERIOD END: 11/05/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Innelli and Molder
    325 Chestnut Street, Suite 903, Innelli and Molder, PA 19106
    215.627.3394 215.627.3397 · admin@innellilaw.com
No Document Title Filing Date
No Document Title Filing Date