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Case Status:    SETTLED
On or around 03/28/2000 (Date of order of final judgment)

Filing Date: March 31, 1998

By the Final Judgment and Order of Dismissal dated March 27, 2000, U.S. District Judge Warren K. Urbom granted the Settling Parties' Stipulation of Settlement and dismissed the case. Plaintiffs' counsel was awarded attorneys' fees of 30% of the Settlement Fund and reimbursement of litigation expenses in the amount of $458,155.39 together with the interest earned on the cash portion of the award. According to Transcrypt’s Form 10-Q For the Quarterly Period Ended September 30, 2001, the Company issued 3,122,001 and 1,337,999 common shares as payment of a litigation settlement liability recorded on the books for $4,197,000 and $1,799,000.

According to a press release dated March 30, 2000, Transcrypt International, Inc. announced on March 29 that the Honorable Warren K. Urbom of the United States
District Court for the District of Nebraska has given final approval of the settlement of the pending shareholders class action suits against the Company and certain of its former officers. The settlement also resolves an identical stockholder class action suit pending in the District Court for Scottsbluff County, Nebraska.

Under the settlement agreement, Transcrypt will transfer 4,460,000 shares of Transcrypt common stock to a settlement fund. The settlement shares have been previously reserved and the transfer of the settlement shares will have no financial effect on the Company's current cash position. In addition, the settlement calls for the Company's Insurance Carriers to provide a cash portion to the settlement fund. Transcrypt would also pay $2,000,000 to the class if there is a purchase of a majority of Transcrypt by acquisition or merger that occurs before January 1, 2001.

The original complaint, filed on behalf of public investors who purchased the common stock of Transcrypt, alleges Transcrypt and certain of its officers and/or directors disseminated materially false and misleading financial statements and press releases reporting financial results. The financial misrepresentations disseminated by defendants during the Class Period created the illusion that Transcrypt was experiencing profitable growth. By misrepresenting Transcrypt's financial condition, defendants were able to portray more attractive financial results and anticipated future growth to investors than would be the case had the truth been disclosed, enabling the individual defendants to sell a large portion of their holdings in the Company at a profit.

On or around March 27, 1998, defendants unexpectedly announced that the Company would be making adjustments to the Company's previously announced financial results. Transcrypt's shares plummeted more than $6 per share on the announcement of this news, approximately 40% of the Company's market value.

Transcrypt is a leading provider of information security and wireless communication products. Transcrypt's information security products prevent the unauthorized interception of sensitive voice and data communications. With more than 800 dealers and distributors in 108 countries worldwide, Transcrypt also ranks as the third-largest manufacturer of land mobile radios in the United States.

COMPANY INFORMATION:

Sector: Technology
Industry: Communications Equipment
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: TRII
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: D. Nebraska
DOCKET #: 98-CV-3099
JUDGE: Magistrate Judge David L. Piester
DATE FILED: 03/31/1998
CLASS PERIOD START: 10/15/1997
CLASS PERIOD END: 03/27/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Dyer, Donnelly & Lilly
    825 Logan Street, Dyer, Donnelly & Lilly 80203-3114
    303.861.3003 ·
  2. Kinsey, Ridenour, Becker & Kistler
    P.O. Box 85778, 601 Lincoln Square, 121 S. 13th Street, Kinsey, Ridenour, Becker & Kistler, NE 68501-5778
    402.438.1310 402.438.1650 · krbk@krbklaw.com.
  3. Lionel Z. Glancy
    1801 Avenue of the Stars Suite 308, Lionel Z. Glancy, CA 90067
    310.201.9150 ·
  4. Reinhardt & Anderson
    E 1000 First Bank Bldg - 332 Minnesota Street, Reinhardt & Anderson, MN 55101
    651.227.9990 ·
  5. Toptani Law Offices
    1035 2nd Avenue Suite 2 , Toptani Law Offices, NY 10022
    212.293.0560 212.293.0550 ·
  6. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
No Document Title Filing Date
COURT: D. Nebraska
DOCKET #: 98-CV-3099
JUDGE: Magistrate Judge David L. Piester
DATE FILED: 03/04/1999
CLASS PERIOD START: 10/15/1997
CLASS PERIOD END: 03/27/1998
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohen Milstein Hausfeld & Toll PLLC (Seattle WA)
    701 Fifth Avenue, Suite 6860, Cohen Milstein Hausfeld & Toll PLLC (Seattle WA), WA 98014
    206.521.0080 206.521.0166 · lawinfo@cmht.com
  2. Dyer, Donnelly & Lilly
    825 Logan Street, Dyer, Donnelly & Lilly 80203-3114
    303.861.3003 ·
  3. Kinsey, Ridenour, Becker & Kistler
    P.O. Box 85778, 601 Lincoln Square, 121 S. 13th Street, Kinsey, Ridenour, Becker & Kistler, NE 68501-5778
    402.438.1310 402.438.1650 · krbk@krbklaw.com.
  4. Lionel Z. Glancy
    1801 Avenue of the Stars Suite 308, Lionel Z. Glancy, CA 90067
    310.201.9150 ·
  5. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  6. Reinhardt & Anderson
    E 1000 First Bank Bldg - 332 Minnesota Street, Reinhardt & Anderson, MN 55101
    651.227.9990 ·
  7. Toptani Law Offices
    1035 2nd Avenue Suite 2 , Toptani Law Offices, NY 10022
    212.293.0560 212.293.0550 ·
  8. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
No Document Title Filing Date
No Document Title Filing Date