Lead Plaintiffs’ counsel in the Securities Class Action (“Lead Counsel”) has not received any payment for their work or expenses incurred in investigating the facts, conducting the Securities Class Action and negotiating the Settlement on behalf of the Lead Plaintiffs and the Class. Lead Counsel will ask the Court for attorneys’ fees not to exceed 25% of the Settlement Fund and expenses not to exceed $260,000, each of which shall be paid from the Settlement Fund. If the above amounts are requested and approved by the Court, the average cost per share of common stock will be approximately 5.6 cents per share, making the estimated recovery per share after fees and expenses approximately 11.7 cents.
Statement of Recovery
Lead Counsel estimates that approximately 20,280,000 shares of Ixia common stock were purchased or otherwise acquired during the Class Period, and damaged as a result of the purported acts or omissions alleged in the Securities Class Action. Lead Counsel estimates that the average recovery per damaged share of Ixia common stock under the Settlement will be 17.3 cents per damaged share, before the deduction of attorneys’ fees, taxes, and costs and expenses, as approved by the Court. The actual recovery per damaged share will depend on the following: (1) the number of shares for which recovery is sought through the Claim Form filed; (2) when Class Members purchased or acquired their shares during the Class Period; (3) whether Class Members either sold their shares during the Class Period, or held their shares past the end of the Class Period; (4) taxes and administrative costs, including the costs of this Notice "Click Here"; and (5) the amount awarded by the Court for attorneys’ fees, costs and expenses. Distributions to Class Members will be made based on the Plan of Allocation which is available from the Settlement Administrator.
Reasons for Settlement
The case has been litigated since November 2013. Lead Plaintiffs and Lead Counsel believe that the Settlement provides the Class with a benefit now, instead of years of further uncertain litigation, including disposition of summary judgment motions, a contested trial, and likely appeals, with the possibility of no recovery at all.
The Settlement must be compared to the risk of no recovery after contested dispositive motions, trial, and likely appeals. A trial is a risky proposition. The claims in the Securities Class Action involve numerous complex legal and factual issues, many of which would require expert testimony. The Settling Parties disagree on both liability and damages and do not agree on the average amount of damages per share, if any, that would be recoverable if Lead Plaintiffs were to have prevailed on each claim alleged. Among the many key issues about which Lead Plaintiffs and the Defendants do not agree are: (1) whether the Defendants violated the securities laws or otherwise engaged in any wrongdoing; (2) whether the misrepresentations and omissions alleged by the Lead Plaintiffs were material, false, misleading or otherwise actionable under the securities laws; (3) whether the Defendants had any intent to mislead; and (4) the method for determining whether, and the extent to which, purchasers of Ixia stock suffered injury and damages that could be recovered at trial. Lead Plaintiffs’ expert has performed an event study and has estimated that if Plaintiffs prevail on the claims in the case, the average recovery that members of the proposed Class might recover is approximately $1.92 per share. The Defendants do not agree with Lead Plaintiffs as to the average amount of damages per Ixia common share that would be recoverable if the Class prevailed on each claim alleged. The Defendants deny that they are liable to the Class and deny that the Class has suffered any damages.
Lead Plaintiffs allege that during the Class Period, Ixia sought to portray itself as a “growth” company. To accomplish that goal, Defendants are alleged to have improperly classified revenue in Ixia’s publicly filed financial statements, in violation of applicable accounting rules.
Defendants have denied and continue to deny each and all of the allegations made and claims brought by Lead Plaintiffs, maintain that they have meritorious defenses and contend that many of the factual allegations are materially inaccurate. Defendants also have denied and continue to deny, among other things, the allegations that Lead Plaintiffs or the Settlement Class have suffered damages or that the Settlement Class was harmed by the conduct alleged in the Complaint or otherwise.
Nonetheless, Defendants have concluded that further conduct of the Securities Class Action would be protracted and expensive, and that it is desirable that the Securities Class Action be fully and finally settled in the manner and upon the terms and conditions set forth in the Settlement Agreement. Defendants also have taken into account the uncertainty and risks inherent in any litigation, especially in complex cases like this Action. The Settlement shall in no event be construed as, or deemed to be evidence of, an admission or concession by any of Defendants with respect to any claim of any fault or liability or wrongdoing or damage to the Class Members in the Securities Class Action.
Dismissal and Releases
If the proposed Securities Settlement is approved, the District Court for the Central District of California (the “Court”) will enter an Order Approving Settlement and Final Judgment (the “Judgment”). The Judgment will dismiss the Released Plaintiffs’ Claims with prejudice as to the Releasees, which include the Defendants and their related parties (including, but not limited to, their parents, subsidiaries and affiliates, and all of their employees, directors and officers). The Judgment will provide that all Class Members shall be deemed to have released and forever discharged all Released Plaintiffs’ Claims (to the extent Members of the Class have such claims) against all Releasees. The terms of the releases, including the meaning of the term “Released Plaintiffs’ Claims,” are set forth in the Claim Form that is enclosed.
Statement of Attorneys’ Fees and Expenses
Lead Plaintiffs’ Counsel have not received any payment for their work investigating the facts, conducting this litigation and negotiating the settlement on behalf of the Lead Plaintiffs and the Settlement Class. Court-appointed Lead Counsel will ask the Court for attorneys’ fees not to exceed 25% of the Settlement Fund and expenses not to exceed $260,000, both of which shall be paid from the Settlement Fund. If the above amounts are requested and approved by the Court, the average cost per share of common stock will be approximately 5.6 cents per share, making the estimated recovery per share after fees and expenses approximately 11.7 cents.
Deadlines and Additional Information
Submit Claim: June 23, 2016
File Objection: June 29, 2016
Request Exclusion June 29, 2016
Court Hearing on Fairness of Settlement: July 29, 2016
For more information, please contact the Settlement Administrator or Plaintiffs’ Lead Counsel:
Ixia Securities Litigation Settlement
c/o Settlement Administrator
1801 Market Street Suite 660
Philadelphia, PA 19103
Plaintiffs’ Lead Counsel:
James J. Sabella, Esq.
Grant & Eisenhofer P.A.
485 Lexington Avenue
New York, New York 10017
Your Legal Rights and Options in this Settlement
SUBMIT A CLAIM
The only way to receive a payment in the Settlement.
File with the Clerk of Court your written concerns or objections to either of the Settlement, the Plan of Allocation and the certification of the Class in the Settlement, or the requested attorneys’ fees and reimbursement of expenses in the Settlement.
Receive no payment. This is the only option that allows you to participate in another lawsuit against the Defendants relating to the class claims being released in the Settlement.
GO TO A HEARING
You may ask to speak in court about the fairness of the Settlement, the Plan of Allocation and the certification of the Class in the Settlement, or the requested attorneys’ fees and reimbursement of expenses in the Settlement.
Receive no payment and give up your right to file your own lawsuit or participate in any other lawsuit against Ixia or the Releasees concerning the legal claims being released in the Settlement.
With the Settlement, you may submit a claim or object, or do both, or do nothing. However, if you timely exclude yourself, you may not object in writing, you may not appear at the Court Hearing on Fairness of Settlement (the “Fairness Hearing”) to state any objections, and you may not submit a claim.
With the Settlement, if you object and do not request exclusion, you will remain a member of the Settlement Class, and if the Court approves the Settlement, you will be bound by the terms of the Settlement in the same way as Class Members who do not object.
With the Settlement, unless you timely request exclusion from the Class, or unless the Court rejects the proposed Settlement, you are bound by the Settlement Agreement and its Releases, whether or not you submit a claim or object.
These rights and options – and the deadlines to exercise them – are explained in this Notice "Click Here".
The Court presiding over this case must decide whether to approve the Settlement. Payments will be made only if the Court approves the Settlement and, if there are any appeals, after appeals are resolved. Please be patient.
The Court has authorized this Notice "Click Here", but no money will be paid to anyone until the Court holds the Fairness Hearing on July 29, 2016. The Court has not decided the merits of this case.