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Case Status:    DISMISSED    
On or around 04/07/2004 (Other)

Filing Date: December 09, 2003

According to the docket posted, the plaintiff in the action filed a Notice of Voluntary Dismissal on February 9, 2004. On April 7, 2004, the Court entered the Order signed by U.S. District Judge Saundra Brown Armstrong withdrawing the class action complaint.

The complaint charges SonicWALL and certain of its officers and directors with violations of the Securities Exchange Act of 1934. SonicWALL provides Internet security solutions designed for broadband access customers in the small to medium enterprise, branch office, telecommuter, and education markets. The Company’s Internet security appliance is marketed under the SonicWALL name.

Specifically, the complaint alleges that during the Class Period, defendants knowingly shipped unassembled electronic components even though they were aware that the components would not and could not meet the specifications, requirements and warranties of agreements entered into with SonicWALL’s clients. The complaint further alleges that defendants knowingly caused SonicWALL to enter into these agreements with its clients knowing that it would be unable to provide products that would meet the specifications, requirements and warranties of the agreements. Moreover, defendants caused SonicWALL to enter into these agreements only to improve the Company’s financial status for these quarters as part of a fraudulent plan to manipulate its financial earnings reports and artificially inflate its share price, while actually having no intention of delivering product conforming with the agreements. According to the complaint there were substantial deficiencies in the Company’s products, including, among other things, circuit boards that had not been programmed and that did not have connector ports that were necessary to perform the tests required under the warranties and agreements.

Further, the complaint alleges that as a result of defendants’ issuance of false and misleading financial statements during the Class Period, SonicWALL’s shares traded at artificially inflated levels, allowing defendants to sell $34 million worth of their own SonicWALL shares.

COMPANY INFORMATION:

Sector: Technology
Industry: Communications Equipment
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: SNWL
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 #: 03-CV-5537
JUDGE: Hon. Saundra Brown Armstrong
DATE FILED: 12/09/2003
CLASS PERIOD START: 10/17/2000
CLASS PERIOD END: 04/03/2002
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  2. Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA)
    100 Pine Street - Suite 2600, Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA), CA 94111
    415.288.4545 415.288.4534 ·
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