Settled: April 04, 2016
On December 4, 2015, Labaton Sucharow, as co-lead counsel, announced an $8.55 million settlement in a securities class action against Model N, Inc. (Model N), a revenue management software company. On April 4, 2016, the Superior Court of California granted final approval to the settlement.
On March 20, 2014, Model N went public in an initial public offering (IPO). This IPO was successful for the company, its underwriters, and the venture capital firm that collectively sold 7.751 million shares of Model N common stock to the public at $15.50 per share, raising more than $108 million in gross proceeds for the company.
The plaintiffs allege that the offering materials for the IPO, in violation of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, made inaccurate statements and omitted adverse, material facts about Model N’s true financial condition that the company was required to disclose. Specifically, the plaintiffs alleged that the offering materials failed to disclose that, at the time of the IPO, Model N was experiencing sales execution challenges—the inability to close and book sales. These challenges reversed the booking and revenue trends reported in Model N’s offering materials, causing future bookings and revenue to decline. At the time the action was filed, Model N’s stock was trading as low as $9.50 per share—a decline of 38 percent from the IPO price.
The case is Plymouth County Retirement System v. Model N, Inc., No. CIV 530291 (Cal. Super. Ct. San Mateo County). The plaintiffs are Plymouth County Retirement System and certain named individual plaintiffs. The defendants are Model N, Inc. and certain of its directors, officers, and underwriters.
A Settlement Hearing was held on April 4, 2016 at 2:00 pm at the Superior Court of California, San Mateo, Dept. 2, Courtroom 2E, 400 County Center, Redwood City, CA 94063. The deadline for seeking exclusion or objecting to the settlement has passed.
Submit Proof of Claim
If you purchased or otherwise acquired Model N common stock pursuant or traceable to the Registration Statement and Prospectus for the company's March 20, 2013 IPO, you may be entitled to a payment from the proposed settlement.
To be eligible for a payment from the proposed settlement, you must submit a Proof of Claim form by March 28, 2016 in accordance with the instructions set forth in the Notice.
If you have any questions about this settlement, please email Labaton Sucharow at firstname.lastname@example.org or contact the claims administrator, Gilardi & Co. LLC at 1-844-861-5485, www.modelnsecuritieslitigation.com.