By the Order and Final Judgment entered on October 19, 2001, the Court certifies the action as a class action on behalf of all persons who purchased or otherwise acquired the common stock of Harbinger Corp during the period 2/4/98-9/30/98. Further, the Court finds the Stipulation is approved as fair, reasonable and adequate and the class members are to conduct themselves accordingly. The complaint is dismissed with prejudice and without costs against the defendants. Plaintiffs' counsel are awarded the sum of $741,461.00 in fees and $57,567.56 in reimbursement of expenses, said amounts to be paid to plaintiffs' lead counsel from the settlement fund with interest.
According to the Notice of Settlement dated July 19, 2001, the Settlement Fund consists of $2,250,000 in cash, plus interest.
Throughout the Class Period, Harbinger was engaged in the business of providing business-to-business electronic commerce software, services and solutions enabling organizations to transact business and exchange data electronically, either directly over standards telephone lines, via "local" computer networks, or over the Internet. Just prior to the Class Period, the market price of Harbinger common stock was approximately $25.00 per share. In response to Harbinger's February 4, 1998 announcement of record revenues "despite the myriad integration activities," Harbinger shares rose by $5.50 per share on heavy volume to close at $30.50 on February 5, 1998. On July 7, 1998, Harbinger announced that it would not meet consensus revenue and earnings estimates for the second quarter of 1998 due, in large part, to a delay in shipping at a recently-acquired facility which pushed $1.0 million in revenues from the second to third quarter of 1998. Harbinger also announced that, "[a]s a result, Harbinger has begun a careful, new review of the integration of its acquisitions." After Harbinger's July 7, 1998 disclosures, its share price fell by $6.25 (29%) from $20.875 per share on July 6 to $14.75 on July 7, 1998. On September 30, 1998, Harbinger issued a press release which announced its restructuring plan to combat operational and integration problems following its numerous corporate acquisitions, the replacement of Defendant, the Company's CEO, the lay-off of 10% of its workforce, and the acknowledgment by Harbinger that it had "kept in existence overlapping products and services from acquired companies (which required) multiple R&D and customer support resources and distracted and diluted the efforts of the Company." After Harbinger's September 30, 1998 announcements, Harbinger shares fell by $3.00 (41%) to close at $4.25 per share on September 30, 1998.