In re Veritas Software Corporation Securities Litigation
We secured a $21.5 million securities settlement.
Labaton Sucharow served as Court-appointed co-lead counsel for lead plaintiffs in a securities class action titled In re Veritas Software Corp. Securities Litigation, Civ. No. 04-831-SLR (D. Del.), asserting claims under the Securities Exchange Act of 1934 against Veritas Software Corporation, Edwin J. Gillis, Gary L. Bloom, and John Brigden. Lead plaintiffs allege in essence that Veritas, a major provider of data and storage management software, issued false and misleading earnings guidance for the second quarter of 2004, and improperly recognized revenue in 2003 and the first quarter of 2004 on certain large sales contracts. On July 6, 2004, just three weeks after Veritas's latest confirmation of its anticipated second quarter results, Veritas suddenly announced that revenues for that quarter would be significantly below expectations. Veritas stock plunged 36% on this news.
On May 23, 2006, Judge Sue L. Robinson issued a memorandum opinion and order in denying defendants' motion to dismiss in its entirety. The class generally includes all persons who purchased or acquired Veritas's publicly traded securities, including persons who sold put options or bought call options, between April 23, 2003 and July 6, 2004.
On July 31, 2008, Judge Sue L. Robinson issued final approval of the settlement in this action, pursuant to which the class of investors will share $21.5 million.