In re SupportSoft, Inc. Securities Litigation
As co-lead counsel, we obtained a $10.7 million settlement.
Labaton Sucharow served as lead counsel, along with Schatz Nobel Izard, P.C., in the recently settled class action against California-based software manufacturer SupportSoft, Inc. and its former Chief Executive Officer and Chief Financial Officer. SupportSoft produces software designed to assist suppliers of broadband services and corporations that operate large computer networks in dealing with problems being encountered by users. The action was brought on behalf of a class consisting of purchasers of the Company's securities between January 20, 2004 and October 1, 2004. The action alleged that the defendants had artificially inflated the price of the Company's securities by re-working previously entered into license agreements for the Company's software in order to accelerate the recognition of revenue from those contracts. The complaint alleged that the acceleration of revenue was designed to conceal the fact that, like other software producers, SupportSoft was being affected by a slowdown in software purchasing and to allow the Company to appear to have achieved additional consecutive quarters of record revenues. The defendants denied any wrongdoing.
The settlement created a fund of $10.7 million, which was distributed after reimbursement of fees and expenses, to members of the class who file proper proofs of claim to reimburse them for a portion of the purchase price of their shares.
On October 2, 2007, the Court signed the Judgement and Order approving the settlement. The claims administrator has reviewed the proofs of claim filed by members of the class and calculated the interest of each approved claimant in the Net Settlement Fund. In response to a motion by class counsel, the Court has authorized the distribution of the Net Settlement Fund to the approved claimants. Checks have been mailed to class members who filed a proof of claim and who were not notified by the claims administrator that their claim was rejected or deficient.