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Case Status:    SETTLED
On or around 02/17/2012 (Ongoing date of last review)

Filing Date: October 29, 2008

The original complaint alleges that October 15, 2008, the Company announced the departures of its Chief Executive Officer and four other senior executives. In response to this surprise announcement, the price of the company’s common stock dropped approximately 15%. Merely a week later, on October 22, 2008, defendants stunned investors by acknowledging that the Company was reviewing the recognition of revenue related to customer contracts signed in the first quarter of 2008 and that it expected to restate its financial statements not only for that quarter, but also the first half of 2008. As a result of these disclosures, the company’s stock price dropped another 25%, as the artificial inflation caused by defendants' false and misleading statements came out of the stock price.

On March 4, 2009, Judge Samuel Conti granted the plaintiff’s motion to consolidate three related actions and further granted the motion to appoint the Alaska Electrical Pension Fund as lead plaintiff and approved lead plaintiff’s selection of Coughlin Stoia Geller Rudman & Robbins LLP as lead counsel. On April 25, 2009, the lead plaintiff filed a Consolidated Complaint. On June 8, 2009, the defendants filed a motion to dismiss the Consolidated Complaint.

On September 11, 2009, Judge Samuel Conti granted the defendants’ motion to dismiss. According to the Order, because Plaintiffs have failed to allege facts that give rise to a strong inference that Defendants intentionally falsified Cadence's financial data, the Consolidated Amended Complaint is hereby dismissed without prejudice. Plaintiffs may file a Second Amendment Complaint within thirty (30) days of this Order.

On October 14, 2009, the plaintiff filed a First Amended Complaint, and on November 20, 2009, the defendants responded by filing a motion to dismiss the First Amended Complaint. On March 2, 2010, the defendants' motion was denied. On May 6, 2010, one of the defendants filed a motion for partial summary judgment and judgment on the pleadings.

According to the Company's FORM 10-K for the fiscal year ended January 1, 2011, on July 7, 2010, the parties agreed, and the District Court ordered, that the litigation be stayed in order to facilitate mediation. On February 11, 2011, the parties to the litigation agreed to settle the litigation for consideration of $38.0 million, of which approximately $22.2 million will be paid by Cadence’s insurers, while the balance will be paid by Cadence. Cadence agreed to this settlement without admitting any wrongdoing on the part of the company or any of its current or former directors and executive officers, and the settlement is subject to completion of final settlement documentation by the parties and approval by the District Court.

On June 2011, the parties filed motions to approve a proposed derivative settlement. This settlement was preliminarily approved on November 15, 2011.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: CDNS
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: N.D. California
DOCKET #: 08-CV-04966
JUDGE: Hon. Samuel Conti
DATE FILED: 10/29/2008
CLASS PERIOD START: 04/23/2008
CLASS PERIOD END: 10/22/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Dyer & Berens LLP (former)
    682 Grant Street, Dyer & Berens LLP (former), CO 80203-3507
    303.861.1764 303.861.1764 · contact@dyerberens.com
  2. Milberg LLP (Los Angeles)
    300 South Grand Avenue, Suite 3900, Milberg LLP (Los Angeles), CA 90071
    213.617.1200 213.617.1200 · ContactUs@milberg.com
No Document Title Filing Date
COURT: N.D. California
DOCKET #: 08-CV-04966
JUDGE: Hon. Samuel Conti
DATE FILED: 10/14/2009
CLASS PERIOD START: 04/23/2008
CLASS PERIOD END: 12/10/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Coughlin Stoia Geller Rudman & Robbins LLP (San Francisco)
    100 Pine Street, Suite 2600, Coughlin Stoia Geller Rudman & Robbins LLP (San Francisco), CA 94111
    415.288.4545 415.288.4534 ·
No Document Title Filing Date