Wolf Popper arrived at a proposed settlement of $29.4 million (plus the cost of providing notice to the class) in Middlesex Retirement System v. Quest Software, Inc., et al., CV06-6863 DOC (RNBx) (C.D. Cal.). Plaintiff Middlesex Retirement System, a Massachusetts public pension fund, in its class action complaint, sued Quest Software, Inc., and certain of its senior officers and directors, alleging improper accounting in connection with defendants’ backdating of stock options. The settlement was reached after three years of litigation in which defendants unsuccessfully sought twice to completely dismiss the case. Both times the District Court largely rejected defendants’ arguments, finding that plaintiff adequately stated claims for violations of the Securities and Exchange Act of 1934 under the pleading standards of the Private Securities Litigation Reform Act of 1995. Wolf Popper also successfully obtained certification of the class over Defendants’ vehement opposition, with the Court finding that Middlesex Retirement System was an appropriate class representative and appointing Wolf Popper as Counsel for the Class. Following months of discovery, including depositions of present and former employees of Quest Software, the parties have reached a proposed settlement of the claims on behalf of persons who purchased stock of Quest Software in the open market from November 9, 2001 through July 3, 2006, and who were damaged thereby.
It is anticipated that the Court will hold a Settlement Hearing early in 2010 to determine (a) whether the proposed Settlement is fair, reasonable and adequate and should be approved by the Court; (b) whether the proposed Plan of Allocation for distributing the Settlement to Class Members is fair and reasonable and should be approved; and (c) whether the application by Plaintiff’s Counsel for an award of attorneys’ fees and reimbursement of litigation expenses, including payment to Lead Plaintiff, should be approved.