(NEW YORK CITY) A federal judge has granted final approval of the $14 million settlement in a class action lawsuit alleging violations of the federal securities laws against IntraLinks Holdings Inc., a virtual data room (VDR) – or cloud computing – company, and other defendants for allegedly misleading statements and omissions regarding the strength of the company’s business, and failing to disclose to investors the loss of the company’s largest client.
The settlement in the lawsuit, Wallace v. IntraLinks Holdings, Inc., et al, reached by Lead Counsel Cohen Milstein Sellers Toll PLLC on behalf of Lead Plaintiff Plumbers and Pipefitters National Pension Fund, was approved on Nov. 12, by Judge Thomas Greisa, of the U.S. District Court, Southern District of New York.
“This settlement is a great result that will resolve a hotly contested case,” said Lead Attorney Carol Gilden, a Partner at Cohen Milstein. “It will provide eligible class members with a long-awaited recovery."
The settlement was the culmination of nearly four hard-fought years of litigation in which the Lead Plaintiff successfully obtained certification of a class of IntraLinks investors who purchased IntraLinks stock between Feb. 17 and Nov. 11, 2011, and a subclass of investors who, purchased stock in the company’s April 6, 2011, secondary offering. The decision was significant in that it was one of the first such decisions following the U.S. Supreme Court’s opinion in Halliburton II, which held that defendants could defeat class certification by rebutting the “fraud-on-the-market” theory of reliance with evidence that the alleged misrepresentations had no impact on the price of the stock in question.
Judge Griesa had previously granted preliminary approval of the settlement on July 31, 2015, and ordered that notice of the pending settlement and Cohen Milstein’s fee and expense request be disseminated to the Class. Since then, more than 31,000 notices have been disseminated to potential class members and their nominees.
To participate in the settlement, Class Members need to submit a proof of claim form with the requested supporting documentation. The deadline to submit claim forms is Nov. 30, 2015. Claim forms can be downloaded from the Settlement Website at www.IntraLinksSecuritiesSettlement.com.
In addition to Lead Attorney Carol Gilden, others involved in the case and settlement were Steve Toll, Kenneth Rehns, and Elizabeth Aniskevich, all of Cohen Milstein.
More information about Wallace v. IntraLinks Holdings, Inc., et al, can be found here.