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Case Status:    SETTLED
On or around 12/11/2012 (Date of order of distribution of settlement)

Filing Date: August 01, 2006

According to a press release dated August 16, 2006, a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of plaintiff Michael J. Golde and all similarly situated purchasers or acquirers of SafeNet, Inc. (“SafeNet” or the “Company”) (NASDAQ: SFNT) common stock during the period between March 31, 2003 to May 18, 2006 (the “Class Period”). The case is captioned Michael J. Golde v. SafeNet, Inc., et al., Case No., 06-CV-6194, and is filed as a related case to a previously filed action, captioned Police & Fire Retirement System of the City of Detroit v. SafeNet, Inc., et al., Case No., 06-CV-5797, which was filed on August 1, 2006, and was assigned to the Honorable Paul A. Crotty. In addition to the claims asserted in the prior action, this action also asserts claims on behalf of the former shareholders of Rainbow Technologies, Inc. (“Rainbow”) who approved the March 2004 merger of Rainbow with SafeNet and who exchanged their shares of Rainbow for shares of SafeNet as a result of the acquisition.

According to a press release dated August 1, 2006, the Complaint alleges that all Defendants violated Section 14(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 14a-9 promulgated thereunder; that Defendants SafeNet and certain Individual Defendants violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder; that all of the Individual Defendants violated Section 20(a) of the Exchange Act.

Specifically, the Complaint alleges that during the Class Period, SafeNet and the individual defendants violated the federal securities laws by issuing false and misleading proxy statements and periodic SEC filings. The Complaint alleges that, throughout the Class Period, Defendants manipulated SafeNet's granting of stock options to provide themselves with unlawful benefits and, during the second and third quarters of 2005, Defendants also engaged in improper accounting of revenues and costs relating to certain long-term delivery contracts. In three separate recent disclosures, SafeNet has announced: (1) the need to restate financial results for the second and third quarters of 2005 arising from improper booking of costs and revenues related to its long term contracts; (2) the termination of its CFO; and (3) pending investigations by the SEC and the Office of the United States Attorney for the Southern District of New York. The price of SafeNet stock declined in response to each disclosure. On July 26, 2006, SafeNet confirmed that it would be restating its financial results for the fourth quarter of 2002, that its financial statements for the year ended 2002 should no longer be relied upon, and that it may restate other periods as well.

On February 21, 2007 the judge entered an order consolidating all related cases and appointing lead plaintiff while approving selection of lead counsel

On August 01, 2008, Consolidated Amended Class Action Complaint was filed by the plaintiffs.

On September 30, 2008, and October 1, 2008, the various defendants filed Motions to Dismiss Plaintiffs' Consolidated Amended Class Action Complaint.

On August 05, 2009, an Opinion & Order partially granted and partially denied the earlier motion to dismiss.

On September 14, 2010, the parties entered a Notice of Filing of Stipulation and Agreement of Settlement with the Court.

On October 7, 2010, a Preliminary Approval Order Providing For Notice and Hearing In Connection With Proposed Class Action Settlement was issued by the Court.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: SFNT
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: S.D. New York
DOCKET #: 06-CV-5797
JUDGE: Hon. Paul A. Crotty
DATE FILED: 08/01/2006
CLASS PERIOD START: 03/31/2003
CLASS PERIOD END: 05/18/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (New York, NY)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (New York, NY), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
  2. 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
  3. 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 ·
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 06-CV-5797
JUDGE: Hon. Paul A. Crotty
DATE FILED: 08/01/2008
CLASS PERIOD START: 03/31/2003
CLASS PERIOD END: 05/18/2006
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernstein Litowitz Berger & Grossmann LLP (New York, NY)
    1285 Avenue of the Americas, 33rd Floor, Bernstein Litowitz Berger & Grossmann LLP (New York, NY), NY 10019
    212.554.1400 212.554.1444 · blbg@blbglaw.com
  2. Labaton Sucharow LLP
    140 Broadway, Labaton Sucharow LLP, NY 10005
    212.907.0700 212.818.0477 · info@labaton.com
No Document Title Filing Date
No Document Title Filing Date