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Case Status:    SETTLED
On or around 10/11/2011 (Date of order of final judgment)

Filing Date: September 15, 2008

The action seeks to pursue remedies under the Securities Act of 1933 and the Securities Exchange Act of 1934. Specifically, the complaint alleges that Defendants issued materially false and misleading statements about its financial condition prior to and following its formation in early 2007 through the date of the merger of Stratex Networks, Inc. and the Harris Microwave Communications Division.

On July 30, 2008, the Company announced that it had discovered accounting errors which rendered its previously issued financial statements to be incorrect. According to the announcement, the Company will restate earnings reports from 2005 through the present. The Company reported these accounting errors will cut previously reported pre-tax income by $18 million to $25 million. As a result of the restatement, the Company announced that its prior financial statements for the first three quarters of fiscal 2008 and the fiscal years 2005 through 2007 should no longer be relied upon. Harris Stratex's share price fell in reaction to the announcement, falling from $11.24 to $7.35 per share -- a 34.61% decline in value.

On December 4, 2008, the plaintiff in the first filed complaint filed a Notice of Voluntary Dismissal. The case is continuing in two actions substantially similar to this action, captioned Dutton v. Harris Stratex Networks, Inc., 08-CV-00755 (D. Del. filed Oct. 6, 2008) and Kleinmann v. Harris Stratex Networks, Inc., 08 Civ. 6171 (D. Del. filed Oct. 30, 2008).

On June 5, 2009, Judge Joseph J. Farnan, Jr. granted the motion to consolidate the two actions under Civil Action No. 08-755-JJF. The Rudman Investors’ motion to be appointed lead plaintiff was granted. Kirby McInerney, LLP, was approved as lead counsel. On July 29, 2009, the lead plaintiff filed a Consolidated Class Action Complaint. On September 28 and October 9, 2009, the defendants responded by filing several motions to dismiss the Consolidated Class Action Complaint.

On July 27, 2010, the Court entered the Order signed by Joseph J. Farnan, Jr. granting the motion to dismiss the Consolidated Class Action Complaint. According to the Order, the Motion To Dismiss The Consolidated Class Action Complaint (D.I. 56) filed by Defendant Ernst & Young is granted; the Motion To Dismiss (D.I. 60) filed by Defendant Harris Corporation is denied; and the Motion To Dismiss (D.I. 61) filed by Defendants Harris Stratex Networks, Inc., and the individual defendants is granted as it relates to a Section 10(b)(5) claim based on the January 30, 2008 statements and denied in all other respects.

On December 10, 2010, the plaintiffs filed a motion to certify the class. On June 1, 2011, a Motion for Preliminary Approval of the Settlement was filed. According to the Stipulation of Settlement, the proposed settlement will settle claims with the company and individual defendants. The settlement fund is in the amount of $8.9 million in cash. The settlement was preliminarily approved on June 21, 2011. The Settlement Fairness Hearing was set for September 16, 2011.

The settlement was approved by the Final Judgement and Order of Dismissal with Prejudice entered on October 11, 2011. Attorneys' fees and expenses were awarded in the amount of 25% of the settlement fund and $147,160.34, respectively. The plan of allocation was also approved. The case is now closed.

COMPANY INFORMATION:

Sector: Technology
Industry: Communications Equipment
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: HSTX
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: D. Delaware
DOCKET #: 08-CV-00578
JUDGE: Hon. Joseph J. Farnan, Jr.
DATE FILED: 09/15/2008
CLASS PERIOD START: 01/29/2007
CLASS PERIOD END: 07/30/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Finger & Slanina, LLC (former)
    One Commerce Center; 1201 Orange Street, Suite 725, Finger & Slanina, LLC (former), DE 19801-1155
    302.884.6766 ·
  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
COURT: D. Delaware
DOCKET #: 08-CV-00755
JUDGE: Hon. Joseph J. Farnan, Jr.
DATE FILED: 07/29/2009
CLASS PERIOD START: 01/29/2007
CLASS PERIOD END: 07/30/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Kirby McInerney LLP (New York)
    825 Third Avenue, Kirby McInerney LLP (New York), NY 10022
    212.371.6600 212.371.6600 ·
No Document Title Filing Date
No Document Title Filing Date