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Case Status:    SETTLED
On or around 09/28/2010 (Other)

Filing Date: April 29, 2005

This case was settled and subsequently closed on September 28, 2010.

On September 28, 2006, the Court entered the Memorandum Opinion and Order signed by U.S. District Judge Mary L. Cooper granting the defeddants’ motion to dismiss the Consolidated Complaint, and the civil case was terminated. On October 27, 2006, the plaintiff filed a Notice of Appeal. The appeal is currently pending in the U.S. Court of Appeals for the Third Circuit.

As disclosed by the Company’s FORM 10-Q for the quarterly period ended June 30, 2006, in April and May of 2005, purported class action lawsuits were filed in the U.S. District Court for the District of New Jersey against the Company and certain of its officers, alleging violations of the federal securities laws. The actions purport to be filed on behalf of purchasers of the Company’s common stock during the period from October 5, 2004 (the date of the Company’s signing of the agreement to acquire Tenovis) through April 19, 2005. The Company has been served with a number of these complaints. No class has been certified in the actions. The complaints seek compensatory damages plus interest and attorneys’ fees. In August 2005, the court entered an order identifying a lead plaintiff and lead plaintiffs’ counsel. A consolidated amended complaint was filed in October 2005. Pursuant to a scheduling order issue by the District Court, defendants filed their motion to dismiss the consolidated complaint in December 2005. A hearing on defendants’ motion to dismiss is scheduled for August 2006. Discovery of the matter has been stayed in accordance with applicable law, pending the outcome of the motion to dismiss.

The Complaint alleges that Avaya violated federal securities laws. Specifically, defendants failed to disclose the following: (i) the cost of the integration of Tenovis, a company Avaya had acquired, was much greater than represented and rather than being "accretive" to fiscal 2005 earnings or having a positive financial impact within a short period of time, the acquisition would, in fact, reduce Avaya's earnings by at least $.06 per share during fiscal 2005; (ii) Avaya's changes in its delivery methods of products to market was creating severe disruptions in sales; (iii) Avaya was experiencing a dramatic reduction of demand in its U.S. market; and (iv) and as a result, Avaya had no reasonable basis to project an increase in profits or an increase in revenues of 25-27% for fiscal 2005.

The complaint further alleges that on or around April 19, 2005, Avaya released its financial and operational results for the second quarter of fiscal 2005 and reported revenues and earnings far short of previous guidance and analyst expectations of earnings of $0.17 a share on revenue of $1.29 billion. One analyst at J.P. Morgan called the results "horrid" and cut its rating on the stock to "neutral" from "overweight." On this news, the stock fell more than 25% on April 20, 2005.

The class action lawsuit has been filed behalf of all persons who purchased the publicly traded securities of Avaya, Inc., and all those who acquired Avaya through its acquisitions of Tenovis and RouteScience.

COMPANY INFORMATION:

Sector: Technology
Industry: Communications Equipment
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: AV
Company Market: New York SE
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: D. New Jersey
DOCKET #: 05-CV-02319
JUDGE: Hon. Stanley R. Chesler
DATE FILED: 04/29/2005
CLASS PERIOD START: 10/05/2004
CLASS PERIOD END: 04/19/2005
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. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  3. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  4. Shepherd, Finkelman, Miller & Shah, LLC
    35 East State Street, Shepherd, Finkelman, Miller & Shah, LLC, PA 19063
    877.891.9880 · jshah@classactioncounsel.com
  5. 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
  6. 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: D. New Jersey
DOCKET #: 05-CV-02319
JUDGE: Hon. Stanley R. Chesler
DATE FILED: 10/17/2005
CLASS PERIOD START: 10/05/2004
CLASS PERIOD END: 04/19/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohn, Lifland, Pearlman, Herrmann & Knopf
    Park 80 Plaza West-One, Cohn, Lifland, Pearlman, Herrmann & Knopf, NJ 7663
    201845.9600 · info@njlawfirm.com
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    58 South Service Road, Suite 200, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
  3. 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 ·
No Document Title Filing Date
No Document Title Filing Date