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Case Status:    SETTLED
On or around 10/16/2003 (Date of order of final judgment)

Filing Date: February 20, 2001

According to the docket, on June 23, 2005, the Court entered the Mandate of the 9th Circuit Court of Appeals, dismissing the appeal.

As reported by Emulex Corporation's Form 10-Q for the quarterly period ended December 26, 2004, the settlement was approved and $39.5 million held in escrow was paid by the Company into the settlement fund during the six months ended December 28, 2003. Gateway Partners filed a challenge to the allocation of settlement funds among the plaintiffs and adequacy of the settlement notice, and the district court ruled against such challenge on November 23, 2004. On December 13, 2004, Gateway Partners filed an appeal and a motion to stop distribution from the settlement fund; both of which were filed with the United States Court of Appeals for the Ninth Circuit (Index No. 04-57123). On January 12, 2005, attorneys for Gateway Partners sent a letter to the appeals court stating that a stipulation would be filed confirming that no proceeds of the settlement fund would be distributed until the appeal is resolved, and that Gateway Partners would not have to post a bond.

In a Press Release dated 04/24/2003, Emulex Corp. announced that it reached tentative settlements to conclude securities class action and derivative lawsuits brought against the company and certain directors and officers in 2001. Under the settlements, all claims will be dismissed and the litigation will be terminated in exchange for a payment of $39.5 million. Additionally, the company will record a receivable from the company's D&O insurance of approximately 32% of the settlement. The resulting after-tax settlement charges of approximately $16.7 million will be recorded as a charge in the third fiscal quarter.

On August 24, 2001, an Amended and Consolidated Complaint was filed pursuant to a Stipulation and Court Order. Defendants' motion to dismiss was denied by way of an order dated March 7, 2002. Defendants' motion for reconsideration of that order was denied by an order dated May 3, 2002. Plaintiffs have commenced discovery. The court certified the class action by an order dated September 30, 2002, and the court scheduled a trial setting conference on June 6, 2003, that was expected to be set for trial in July, 2003.

The complaint charges Emulex and certain of its officers and directors
with violations of the Securities Exchange Act of 1934. Emulex is a designer,
developer and supplier of a line of Fibre Channel host adapters, hubs, ASICs
and software products that provide connectivity solutions for Fibre Channel
storage area networks, network attached storage and RAID. The complaint
alleges that during the Class Period, defendants made positive but false
statements about Emulex's results and business, while concealing material
adverse information about customers pushing out orders. As a result, Emulex's
stock traded at artificially inflated levels, permitting defendants to sell
$40.36 million worth of their Emulex stock. On February 9, 2001, Emulex
issued a press release directing people to visit the Company Website.
Visitors were able to listen to a recording of Emulex's CEO describing what
Emulex would later disclose at a conference on February 13, 2001: that it had
been experiencing a push-out of orders since late January that might cause
Emulex sales to fall short of previous Company guidance for Emulex's 3rdQ F01
to end on April 1, 2001. On Monday morning when the market opened again,
Emulex's stock immediately dropped, falling 48% to $38-1/8 before closing at
$40-3/8 on February 12, 2001 on volume of 48.6 million shares.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Peripherals
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: EMLX
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: C.D. California
DOCKET #: 01-CV-00219
JUDGE: Hon. Gary L. Taylor
DATE FILED: 02/20/2001
CLASS PERIOD START: 01/18/2001
CLASS PERIOD END: 02/09/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA)
    225 Broadway, Suite 1900, Cauley, Geller, Bowman, Coates & Rudman LLP (San Diego, CA), CA 92010
    619.702.7350 619.702.7351 ·
  2. Kaplan Fox & Kilsheimer, LLP (former New York, NY)
    805 Third Avenue, 22nd Floor, Kaplan Fox & Kilsheimer, LLP (former New York, NY), NY 10022
    212.687.1980 212.687.7714 · info@kaplanfox.com
  3. 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
  4. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
No Document Title Filing Date
COURT: C.D. California
DOCKET #: 01-CV-00219
JUDGE: Hon. Gary L. Taylor
DATE FILED: 08/24/2001
CLASS PERIOD START: 01/18/2001
CLASS PERIOD END: 02/09/2001
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. 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
  2. Robbins Umeda & Fink, LLP (San Diego)
    1010 Second Avenue, Suite 2360, Robbins Umeda & Fink, LLP (San Diego), CA 92101
    800-350-6003 · info@ruflaw.com
  3. Scott & Scott LLC (Connecticut)
    P.O. Box 192, 108 Norwich Avenue, Scott & Scott LLC (Connecticut), CT 06415
    860.537.5537 860.537.4432 · scottlaw@scott-scott.com
No Document Title Filing Date
No Document Title Filing Date