Oklahoma Firefighters Pension &
Retirement System v. Ixia, et al.
Case No. CV13-08440-DMG(SHx) (C.D. Cal.)


Welcome to the Ixia Securities Litigation Website.

Overview

This website provides you with important information in connection with the settlement of a lawsuit concerning Ixia (“Ixia” or the “Company”).1 Your rights may be affected by this Notice "Click Here". If you wish to recover money in the settlement of the Securities Class Action, you must act by June 23, 2016. Please read the the Notice "Click Here" and other documents provided carefully.

Important Dates and Documents: 
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Deadlines

June 23, 2016 - Postmark Deadline to Submit Claim

June 29, 2016- Received Deadline to Object to the Settlement

June 29, 2016 - Received Deadline to request exclusion from the Settlement Class

July 29, 2016 - Court Hearing on Fairness of Settlement


To: ALL INDIVIDUALS OR ENTITIES WHO PURCHASED OR OTHERWISE ACQUIRED THE COMMON STOCK OF IXIA BETWEEN FEBRUARY 4, 2011 AND APRIL 3, 2013, INCLUSIVE (THE “CLASS PERIOD”).

NOTICE OF PENDENCY AND PROPOSED SETTLEMENT OF SECURITIES CLASS ACTION

Please be advised that Lead Plaintiffs Oklahoma Firefighters Pension & Retirement System and Oklahoma Law Enforcement Retirement System (“Lead Plaintiffs”) have reached a proposed settlement (the “Settlement”) that would resolve all claims that were or could have been asserted in the above-referenced securities class action (the “Securities Class Action”) filed on behalf of persons who purchased or otherwise acquired Ixia common stock during the Class Period, as defined above, and who were damaged thereby. This Notice "Click Here" explains important rights you may have including your possible receipt of cash from the Settlement Fund described in this Notice "Click Here". Your legal rights are affected whether you do or do not act. Also enclosed is a Claim Form that you must complete and submit postmarked on or before June 23, 2016 in order to participate in the Settlement.

SUMMARY OF SETTLEMENT

The Settlement resolves class litigation over whether Ixia made certain misrepresentations in its public statements, thereby inflating the value of the stock. See “Reasons for the Settlement” and Question 2 in this Notice "Click Here".

The Settlement will provide a Settlement Fund of $3,500,000 for the benefit of investors who purchased or otherwise acquired Ixia common stock during the Class Period. Your recovery will depend on the number of shares of Ixia common stock you, and other Class Members who file claims, purchased and sold and the prices at which you, and the other Class Members who file claims, purchased and sold those shares. The estimated average recovery per share of common stock will be approximately 17.3 cents before deduction of Court-approved fees and expenses and costs of notice and claims administration. See “Statement of Recovery” and Question 7 in this Notice "Click Here".

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:

Settlement Administrator:
Ixia Securities Litigation Settlement
c/o Settlement Administrator
1801 Market Street Suite 660
Philadelphia, PA 19103
Telephone: 855-569-5889
Email: IxiaSecuritiesSettlement@AngeionGroup.com

Plaintiffs’ Lead Counsel:
James J. Sabella, Esq.
Grant & Eisenhofer P.A.
485 Lexington Avenue
29th Floor
New York, New York 10017
Telephone: 646-722-8500


Your Legal Rights and Options in this Settlement

SUBMIT A CLAIM

The only way to receive a payment in the Settlement.

OBJECT

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.

EXCLUDE YOURSELF

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.

DO NOTHING

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.


Footnotes:

  • 1. For purposes of this Notice, all capitalized but undefined terms shall have the same meaning as those set forth in the Settlement Agreement.[Return to Text]