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Case Status:    SETTLED
On or around 02/22/2005 (Date of order of final judgment)

Filing Date: October 17, 2002

According to the Company’s FORM 10-Q for the quarterly period ended February 28, 2005, on October 20, 2004, a Stipulation and Agreement of Settlement (the “Settlement”) was filed with the United States District Court for the Northern District of California (the “Court”) in connection with the matter “In re Liberate Technologies Securities Litigation” (the “Class Action”). The Class Action is based on the restatement of our financial statements for certain periods of fiscal 2002 and the revision of our preliminary financial results announced for the first quarter of fiscal 2003 (the “Restatement”). The parties to the Settlement are: (i) the lead plaintiff in the Class Action, on behalf of himself and each of the class members; and (ii) defendants Liberate Technologies and certain individual defendants. Under the terms of the Settlement, Liberate agreed to pay or cause to be paid $13.8 million in settlement of the claims specified in the Class Action, and the lead plaintiff and each class member agreed to release Liberate and the other defendants from those claims Following a settlement hearing on February 15, 2005, the Court granted final approval of the Settlement and, pursuant to the Settlement, entered judgment dismissing the Class Action with prejudice.

The original Complaint charges Liberate Technologies and certain of its officers and directors with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of Liberate's revenue and earnings caused Liberate's stock price to become artificially inflated, inflicting damages on investors. The Complaint alleges that during the Class Period, defendants artificially inflated revenue by recognizing certain software license fees in violation of GAAP and the Company's own stated policies. On October 15, 2002, after the market closed, defendants disclosed that the "appropriateness and timing" of certain software license fees had been
called into question and that the Company would likely restate its fourth
quarter and fiscal year 2002 financial results. Liberate Technologies' stock
price plummeted 16% in after-hours trading as a result of the disclosure of its
accounting problems. On the next day, October 16, 2002, the fallout from the
announcement continued as Liberate Technologies stock dropped more than 22% from the previous day's close.

COMPANY INFORMATION:

Sector: Technology
Industry: Software & Programming
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: LBRT
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 #: 02-CV-5017
JUDGE: Hon. Martin J. Jenkins
DATE FILED: 10/17/2002
CLASS PERIOD START: 09/20/2001
CLASS PERIOD END: 10/15/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Brodsky & Smith, LLC (former Pennysylvania)
    11 Bala Avenue, Suite 39, Brodsky & Smith, LLC (former Pennysylvania), PA 19004
    610.668.7987 610.660.0450 · esmith@Brodsky-Smith.com
  2. Cauley Geller Bowman Coates & Rudman LLP (Little Rock, AR)
    P.O. Box 25438, Cauley Geller Bowman Coates & Rudman LLP (Little Rock, AR), AR 72221-5438
    501.312.8500 501.312.8505 ·
  3. Glancy Binkow & GoldBerg LLP
    1925 Century Park East, Suite 2100, Glancy Binkow & GoldBerg LLP, CA 90067
    310-201-9150 · info@glancylaw.com
  4. Rabin & Peckel LLP
    275 Madison Avenue, 34th Floor, Rabin & Peckel LLP, NY 10016
    212.682.1818 212.682.1892 · email@rabinlaw.com
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 02-CV-5017
JUDGE: Hon. Martin J. Jenkins
DATE FILED: 11/24/2003
CLASS PERIOD START: 12/20/2001
CLASS PERIOD END: 10/15/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Green & Jigarjian LLP
    235 Pine Street, 15th Floor, Green & Jigarjian LLP, CA 94104
    415.477.6700 415.477.6710 ·
  2. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date