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Case Status:    SETTLED
On or around 06/25/2003 (Date of order of final judgment)

Filing Date: October 27, 2000

According to the docket, on April 2, 2003, the Court entered the Orders by U.S. District Judge Arlander Key granting the parties’ joint motion for preliminary approval of the settlement agreement and certifying the settlement class for the settlement of the securities class action and shareholder derivative action. The fairness hearing was set for June 18, 2003. On June 18, 2003, the settlement was approved. Pursuant to the Order and Final Judgment entered on June 18, 2003, and pursuant to Stipulation and Final Approval of Class Action Settlement, the case was dismissed on the merits with prejudice and without costs to any party.

In a news article dated February 24, 2003, Westell Technologies, Inc. announced on February 20, 2003, an agreement to settle the consolidated securities class action lawsuit In re Westell Technologies, Inc. Securities Litigation (No. 00C6735) filed against the Company and certain executive officers and directors of the Company in the United States District Court for the Northern District of Illinois. In addition, Westell announced an agreement to settle the related consolidated derivative action Dollens and Vukovich v. Zionts, et al. (No. 01C2826), filed in the United States District Court for the Northern District of Illinois. The actions generally alleged that the defendants violated the antifraud provisions of the federal securities laws or state common laws by making false and misleading statements in 2000 regarding forecasts for the second quarter of Westell's fiscal 2001. Under the terms of the settlement agreement, all claims will be dismissed without any admission of liability or wrongdoing by any defendant.

Further, under the terms of the settlement, Westell's and its directors' and officers' liability insurers will pay a total of $3.95 million to the plaintiffs and their counsel. Westell does not expect to pay anything in connection with the settlement. The shareholder class will receive $3.35 million out of which the Court will be asked to award attorneys' fees and expenses to class counsel. Counsel to plaintiffs in the derivative action will receive the remaining $600,000 to settle the derivative claim. Beyond the financial settlement, Westell agreed to adopt certain corporate governance and communications procedures. The agreement is subject court approval.The parties expect that the Court will first consider the settlement at a preliminary approval hearing that they anticipate will occur in March 2003.

On January 10, 2001, the plaintiffs’ motion for consolidation was granted, and the Court appointed lead plaintiff and lead counsel. On February 1, 2001, the plaintiffs filed a consolidated amended class action complaint, and, that same day, the defendants responded by filing a motion to dismiss the plaintiff's consolidated complaint. On October 30, 2001, the Court entered the Minute Order by U.S. District Judge Joan Humphrey Lefkow granting in part and denying in part the motion to dismiss.

The original complaint alleged that Westell and certain of its officers and directors violated federal securities laws by making a series of materially false and misleading statements. Specifically, shareholders asserted that Westell misrepresented the level of demand for its products from SBC Communications when they knew since June of 2000 that SBC would be purchasing significantly fewer modems from the Company. In addition, certain officers and directors sold over $11 million of Westell shares in alleged illegal insider trades at peak prices near $30 per share, just before an analyst began reporting that the customer would be scaling back its modem purchases. As a result of these false and misleading statements, the complaint charges, Westell's stock price was artificially inflated throughout the Class Period, causing plaintiffs and the other members of the Class to suffer damages.

COMPANY INFORMATION:

Sector: Technology
Industry: Communications Equipment
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: WSTL
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. Illinois
DOCKET #: 00-CV-6735
JUDGE: Hon. George W. Lindberg
DATE FILED: 10/27/2000
CLASS PERIOD START: 06/27/2000
CLASS PERIOD END: 10/18/2000
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. Harold B. Obstfeld
    260 Madison Avenue, Harold B. Obstfeld, NY 10016
    212.696.1210 ·
  3. Keller Rohrback LLP (Seattle)
    1201 Third Avenue, Suite 3200, Keller Rohrback LLP (Seattle), WA 98101-3052
    800.776.6044 206.623.3384 · investor@kellerrohrback.com
  4. Law Offices of Marc S. Henzel (Lawrence)
    335 Central Avenue, Law Offices of Marc S. Henzel (Lawrence), NY 11559
    516.374.0707 516.295.3473 · securitiesfraud@comcast.net
  5. Levy & Levy

    ·
  6. 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
  7. 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
  8. 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
COURT: N.D. Illinois
DOCKET #: 00-CV-6735
JUDGE: Hon. George W. Lindberg
DATE FILED: 02/01/2001
CLASS PERIOD START: 06/27/2000
CLASS PERIOD END: 10/18/2000
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. Much Shelist Freed Denenberg Ament & Rubenstein, PC

    800-470-6824 312-621-1750 ·
No Document Title Filing Date