As summarized by the lead counsel’s website, Middlesex Retirement System has been selected by the United States District Court for the Central District of California as Lead Plaintiff and Wolf Popper LLP as Lead Counsel in the class action lawsuit against Quest Software, Inc.
The action is pending before United States District Judge David O. Carter. The lawsuit alleges that Quest Software, Inc. and certain of its executives (“Quest”) violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by failing to disclose and concealing through various false statements and omissions that they did not properly account for issuing stock option grants at prices which were below fair market value on the actual grant date. Consequently, the price of Quest stock was artificially inflated during the period November 9, 2001 through July 3, 2006.
The First Amended Complaint was filed on March 26, 2007 and the defendants moved for dismissal on May 25, 2007. On October 22, 2007, Judge David O. Carter granted in part and denied in part the motion by the defendants to dismiss the First Amended Complaint. On January 18, 2008, the plaintiff filed a Second Amended Complaint.
On July 10, 2008, the judge granted in part and denied in part the defendants' motions to dismiss. The order states, "Defendants' Motions to Dismiss are hereby
DENIED, except that Plaintiff's § 20A claim is hereby DISMISSED against
Defendants Doyle, Murdock and Garn. Defendants' Motion for Reconsideration is hereby DENIED AS MOOT. Defendants are hereby ORDERED to begin producing discovery posthaste."
Shortly after the judge's denial to dismiss the case, defendants filed answers to the complaint. The parties soon engaged in the discovery phase. On June 12, 2009, the plaintiff filed a motion to certify the class. The Company filed its opposition to the motion to certify the class on August 4, 2009. The U.S. District Court scheduled a hearing on the motion for class certification on August 31, 2009. On September 8, 2009, Judge David O. Carter granted the lead plaintiff’s motion to certify the class action.
On November 19, 2009, a Stipulation for Settlement and a motion for preliminary approval of the proposed settlement were filed. According to the Stipulation, the proposed settlement is in the amount of $29,400,000.00. On December 7, 2009, Judge Carter preliminarily approved the settlement and the Settlement Hearing was set for March 15, 2010.
On April 26, 2010, Judge Carter approved the final settlement and dismissed the action with prejudice. Plaintiff’s Counsel was awarded 25% of the settlement fund for fees and $612,726.66 for expenses.