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Case Status:    SETTLED
On or around 07/26/2007 (Ongoing date of last review)

Filing Date: April 13, 2000

On July 6, 2006, a Stipulation of Settlement was filed, and the settlement was preliminarily approved by the Order entered on July 25, 2006. The final approval of the settlement is currently pending.

According to a press release dated March 22, 2006, Terayon Communication Systems, Inc., on March 17, 2006, Terayon entered into a Memorandum of Understanding (MOU) providing for the settlement of the securities class action entitled In re Terayon Communication Systems, Inc. Securities Litigation, Case No. C-00- 1967-MHP, pending in the United States District Court, Northern District of California. As previously disclosed, the amended complaint alleged that Terayon and certain of its officers and directors (collectively, the "Defendants") violated the federal securities laws by issuing materially false and misleading statements and failing to disclose material information regarding Terayon's technology. The class action included claims for damages on behalf of those who purchased or otherwise acquired Terayon's securities (the "Affected Securities") during the class period of November 15, 1999 to April 11, 2000 (the "Plaintiff Class"). In accordance with the settlement outlined in the MOU, the Defendants shall pay or cause to be paid to the Plaintiff Class an amount of fifteen million dollars ($15,000,000). Payment will be paid within 45 days of the execution of the MOU or 15 days after court approval of the Settlement, whichever is later, but in no event earlier than May 10, 2006. Terayon expects to pay approximately $2.3 million of this amount, and its insurance carriers have agreed to pay the remaining settlement amount. The settlement is subject to final approval by the court.

As summarized by the latest docket, on September 25, 2000, the Court entered the Order by Chief Judge Marilyn H. Patel granting plaintiff's motion to be appointed as lead plaintiff and for approval of lead plaintiff choice of counsel. On September 21, 2000, the plaintiff filed a Consolidated Class Action Complaint, and on October 30, 2000, the defendants responded by filing a motion to dismiss the consolidated complaint. On March 15, 2001, the Court entered the Order granting in part the defendants' motion to dismiss and dismissed the consolidated complaint without prejudice with leave to amend. On April 13, 2001, the plaintiff filed a First Amended Consolidated Class Action Complaint, and on June 15, 2001, the defendants responded by filing a motion to dismiss first amended consolidated complaint. On March 29, 2002, the Court entered the Order granting in part and denying in part defendants' motion to dismiss the consolidated complaint. On February 24, 2003, the Court entered the Order granting plaintiff's motion to certify a class. On July 11, 2003, the defendant filed a motion for summary judgment. That same day the plaintiff filed a motion for partial summary judgment on the falsity of statements made by defendants during the class period. On March 16, 2006, the Court entered an Order, a ninety-day conditional dismissal.

On May 30, 2000, the Court entered the Stipulation and Order by U.S. District Judge J. S. Letts transferring the case from the U.S. District Court for the Central District of California to the Northern District of California.

The original complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5). The action arises from damages incurred by the class as a result of a scheme and common course of conduct by defendants which operated as a fraud and deceit on the class during the class period. According to the complaint, defendants' scheme included rendering false and misleading statements and/or omissions concerning the present and future financial condition and business prospects of the company, as well as the financial benefits that would enure to Terayon and its shareholders, including, among other things, the certification of the company's proprietary S-CDMA cable modem technology by CableLabs (the industry regulating organization).

COMPANY INFORMATION:

Sector: Technology
Industry: Communications Equipment
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: TERN
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 #: 00-CV-03912
JUDGE: Hon. J. Spencer Letts
DATE FILED: 04/13/2000
CLASS PERIOD START: 02/02/2000
CLASS PERIOD END: 04/11/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 00-CV-01967
JUDGE: Hon. J. Spencer Letts
DATE FILED: 04/13/2001
CLASS PERIOD START: 02/02/2000
CLASS PERIOD END: 04/11/2000
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  2. Cauley & Geller (Boca Raton)
    2255 Glades Road, #421A, Cauley & Geller (Boca Raton), FL 33431
    561.750.3000 ·
  3. Chitwood & Harley LLP
    1230 Peachtree Street, N.E., 2300 Promenade II, Chitwood & Harley LLP, GA 30309
    888.873.3999 404.873.4476 · info@chitwoodlaw.com
  4. Farella, Braun & Martel
    Russ Building - 30th Floor, 235 Montgomery Street, Farella, Braun & Martel, CA 94104
    415.954.4400 ·
  5. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego)
    655 West Broadway, Suite 1900, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (San Diego), CA 92101
    619.231.1058 619.231.7423 ·
  6. 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
  7. Morrison & Foerster LLP
    425 Market Street, Morrison & Foerster LLP, CA 94105-2482
    415.268.7000 ·
  8. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  9. Schubert & Reed LLP
    Two Embarcadero Center, Suite 1050, Schubert & Reed LLP, CA 94111
    415.788.4220 415.788.0161 · mail@schubert-reed.com
  10. 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
  11. Wolf Haldenstein Adler Freeman & Herz LLP (New York)
    270 Madison Avenue, Wolf Haldenstein Adler Freeman & Herz LLP (New York), NY 10016
    212.545.4600 212.686.0114 · newyork@whafh.com
No Document Title Filing Date
No Document Title Filing Date