E*TRADE Financial Corporation ("E*TRADE" or the Company), through its subsidiaries, offers financial solutions to retail and institutional customers worldwide. In addition, the Company offers mortgage, home equity, and margin and credit card products; real estate loans; and various consumer loans, including recreational vehicle, marine, commercial, automobile, and credit card loans.

According to a press release dated October 2, 2007, the Complaint charges E*TRADE and certain of its officers and directors with violations of the Exchange Act. Specifically, according to the Complaint, during the Class Period, Defendants issued materially false and misleading statements that misrepresented and failed to disclose: (a) that the Company was experiencing a rise in delinquency rates in its mortgage and home equity portfolios; (b) that the Company failed to timely record an impairment on its mortgage and home equity portfolios; (c) that the Company’s securities portfolio, which includes assets backed by mortgages, was materially overvalued; and (d) that based on the foregoing, Defendants’ positive statements about the Company’s earnings and prospects were lacking in a reasonable basis at all times.

The Complaint further alleges that on September 17, 2007, the Company announced that it will exit the wholesale mortgage market and it is revising its guidance for 2007, among other things. Upon this news, shares of the Company’s stock fell $2.32 per share, or over 15%, over the next six trading days as the investing public digested the news.

On July 16, 2008 the judge appointed lead Plaintiffs and approved their selection of lead Counsel in the consolidated case. Plaintiffs were given until the end of 2008 to file a Consolidated Complaint with other scheduling deadlines set to run through June 2009.

On January 16, 2009, a Consolidated Amended Class Action Complaint for Violations of the Federal Securities Laws against the Defendants was filed with the court.

On May 11, 2010, the Defendant’s motion to dismiss was denied by the Court for reasons that the Defendants were not able to establish that the risks which materialized in the action were unforeseeable as a matter of law.

On June 12, 2012, the Court issued an Order Granting Preliminary Approval of Settlement, Granting Conditional Class Certification, and Providing for Notice.

On October 20, 2012, a Final Judgment and Order of Dismissal was entered into the Court's docket.

On November 15, 2012, a Notice of Appeal was entered into the Court's docket. On January 11, 2013, this Appeal was withdrawn.

On April 5, 2013, the Court issued an Order denying an Objector's motion for an award of attorney's fees and reimbursement of expenses.