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Case Status:    SETTLED
On or around 11/09/2007 (Ongoing date of last review)

Filing Date: November 01, 2005

According to an article dated April 8, 2008, the U.S. District Court for the Western District of Texas will hold a fairness hearing on July 1, 2009, at 2:00 p.m. with regard to the proposed settlement ($7,000,000 in cash & 2.5 million shares of Motive common stock) in the matter, "In re Motive, Inc. Securities Litigation, Civil Action No. A-05-CV- 923-LY." The hearing will be held before, Judge Lee Yeakel at the U.S. District Court for the Western District of Texas, U.S. Courthouse 200 West 8th Street, Austin, TX 78701. … The Defendant E&Y is not participating in this partial settlement, and the Lead Plaintiffs continue to prosecute the claims asserted in the Class Action against E&Y.

According to a press release dated November 5, 2007, Motive, Inc., a leading provider of management software for broadband and mobile data services, announced that the company has reached an agreement in principle to settle the securities class action litigation pending in U.S. District Court in the Western District of Texas (In re Motive, Inc. Securities Litigation). Additionally, the company has reached an agreement in principle to settle the shareholder derivative litigation pending in the same court (Adair v. Harmon, et al.). With regard to the class action, the agreement in principle provides that all claims against the company and individuals named as defendants will be dismissed without presumption or admission of any liability or wrongdoing. Pursuant to the terms of settlement, Motive will pay to the plaintiff class a total of $7 million. The payment will be comprised of $4.5 million from insurance proceeds and $2.5 million from Motive. Additionally 2.5 million shares of the company's stock will be issued by Motive for the benefit of the plaintiff class.

On January 19, 2006, the Court entered the Joint Stipulation and Order signed by Judge Lee Yeakel consolidating the caess, and appointing co-lead plaintiffs and appointing Federman & Sherwood and Schiffrin & Barroway, LLP as co-lead counsel. On October 27, 2006, the plaintiffs filed a Consolidated Class Action Complaint which included additional defendants Ernst & Young, LLP, and an individual defendant. The defendants have filed various motions to dismiss the Consolidated Amended Class Action Complaint. On October 12, 2007, the Court granted the motions to withdraw the motions to dismiss.

The original Complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material misrepresentations to the market concerning its projected revenues, which had the effect of artificially inflating the shares' market price.

Specifically, the complaint alleges that during the Class Period, Motive projected third quarter 2005 revenues to be in the range of $24.5 million to $25.5 million. Just two months later, however, the Company announced that third quarter revenues would be closer to $16.1 million, due to decreased demand for its product. On this news, the price of the Company's common stock fell $4 .45, a decrease of 36%. Defendants' previous guidance was false or misleading. At the time such guidance was released Motive knew of the decreased demand for its product and that its news inflated revenue projection had no reasonable basis. Additionally, on October 27, 2005, before the market opened, Motive announced its financial results for the quarters ended March 31, 2005 and June 30, 2005 and the six-month period ended June 30, 2005. On this news the Company's share price fell an additional $0.41, a decline of more than 11%.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: MOTV
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: W.D. Texas
DOCKET #: 05-CV-00923
JUDGE: Hon. Lee Yeakel
DATE FILED: 11/01/2005
CLASS PERIOD START: 07/11/2005
CLASS PERIOD END: 10/26/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC), DC 20005
    202.408.4600 202.408.4699 · lawinfo@cmht.com
  2. Dyer & Shuman, LLP
    801 E. 17th Avenue, Dyer & Shuman, LLP , CO 80218-1417
    303.861.3003 800.711.6483 · info@dyershuman.com
  3. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
  4. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  5. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  6. The Rosen Law Firm P.A. (Former New York Address)
    232 Madison Avenue, Suite 906, The Rosen Law Firm P.A. (Former New York Address), NY 10016
    212.686.1060 212.202.3827 · info@rosenlegal.com
No Document Title Filing Date
COURT: W.D. Texas
DOCKET #: 05-CV-00923
JUDGE: Hon. Lee Yeakel
DATE FILED: 10/27/2006
CLASS PERIOD START: 06/25/2004
CLASS PERIOD END: 10/26/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
  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
No Document Title Filing Date