Judge Thomas P. Griesa, of the United States District Court for the Southern District of New York, on July 31, 2015, granted preliminary approval to a $14 million cash settlement achieved by Lead Plaintiff Plumbers and Pipefitters National Pension Fund with Defendants IntraLinks Holdings, Inc., J. Andrew Damico, Anthony Plesner, Patrick J. Wack, Jr., Brian J. Conway, Peter Gyenes, Thomas Hale, Habib Kairouz, Robert C. McBride, Harry D. Taylor, Morgan Stanley & Co. Incorporated, Jefferies LLC (f/k/a Jefferies & Company, Inc.), Lazard Capital Markets LLC, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Pacific Crest Securities LLC.
The proposed settlement will benefit a previously certified class of purchasers of IntraLinks common stock between February 17, 2011, and November 11, 2011, inclusive, including a subclass of those persons or entities who purchased IntraLinks common stock pursuant or traceable to the Company’s registration statement and prospectus issued in connection with the April 6, 2011, Secondary Offering and who also sustained damages.
The settlement resolves securities fraud claims asserted under Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Sections 11, 12(2) and 15 of the Securities Act of 1933 by the Plumbers and Pipefitters Fund against Defendants for misstating the success of the company’s Enterprise business segment and concealing the impending loss of their largest client, the FDIC, during the class period which included a secondary stock offering.
On September 30, 2014, the court certified the class in full and allowed the case to proceed as a class action. The settlement was achieved at the close of fact discovery that included the review of more than 1.9 million pages produced by parties and non-parties and 23 depositions all of which allowed the parties to fully understand the strengths and complexities of the claims asserted.
In the order issued on July 31, Judge Griesa also gave authorization for the class notice to be issued to class members.
A court hearing will be held at 2 p.m. November 12, 2015, to determine whether the settlement should be given final approval and to hear any objections to the settlement or to Lead Counsel, Cohen Milstein Sellers & Toll PLLC’s request for attorneys' fees and expenses.
Lead Plaintiff and the Class are represented by Carol Gilden of Cohen Milstein Sellers & Toll PLLC. More information about the settlement, including the notice, proof of claim form, and settlement agreement, will be posted in the coming weeks at www.IntraLinksSecuritiesSettlement.com.