According to a press release dated December 5, 2011, the complaint charges the Company and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company provides critical information exchange solutions for its customers. The complaint alleges that, during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and prospects. Specifically, defendants misrepresented and/or failed to disclose that the Company was experiencing a slowdown in its Enterprise business segment.
On May 11, 2011, the Company announced its financial results for the first quarter of 2011, announcing the reduction of its full year 2011 income projections from $21-$23 million to $17-$19 million. Also on that same day, in a conference call with investors and analysts the Company revealed that a large Enterprise segment customer was dramatically reducing its use of the Company’s products going forward, and, therefore, the Company was reducing its earnings expectations as a result. In response to these announcements, the Company’s stock declined from $29.99 per share to $20.22 per share on extremely heavy trading volume. On August 10, 2011, the Company issued a press release announcing its financial results for the second quarter of 2011. The Company reported revenues and earnings in line with its guidance, but reduced its outlook for the third quarter of 2011. Also on that same day, the Company announced that it had received a subpoena from the SEC requiring the production of certain business documents. In response to these announcements, the price of its stock declined from $12.16 per share to $6.64 per share on extremely heavy trading volume. Then, on November 8, 2011, the Company issued a press release announcing its financial results for the third quarter of 2011. The Company reported continuing problems in its Enterprise business segment. In response to this announcement, the price of IntraLinks common stock declined from $8.79 per share on November 8, 2011, to $4.80 on November 10, 2011.
On April 3, 2012, the Court issued an Order to consolidate the two pending actions, appointed lead plaintiff, and approved the selection of lead counsel.
On June 15, 2012, the plaintiffs filed their consolidated class action complaint.
On May 8, 2013, the Court issued an Opinion denying the defendants' motion to dismiss.
On September 30, 2014, the Court issued an Order granting Plaintiff's motion for class certification.
The parties entered a Settlement Agreement which was filed with the Court on July 31, 2015. The Court preliminarily approved the Settlement on the same date. The Court granted final approval of the Settlement and dismissed this case on November 12, 2015.