Motive, Inc. is a provider of management software for broadband and mobile data services.

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%.

On January 19, 2006, the Court entered the Joint Stipulation and Order signed by Judge Lee Yeakel consolidating the cases, 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.

According to a press release dated November 5, 2007, Motive 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.

The parties entered into a Stipulation and Agreement of Partial Settlement on December 6, 2007. The Court granted preliminary approval of the Settlement on March 7, 2008. On July 14, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

On June 5, 2009, the Court issued an Order authorizing distribution of the net Settlement fund.