On June 23, 2010, Judge Nicholas G. Garaufis of the Eastern District of New York entered an order granting final approval of a $225 million class action settlement proposed by Lead Counsel Pomerantz Haudek Grossman & Gross LLP and Lead Plaintiff the Menora Group, with defendants Comverse Technology, Inc., Jacob "Kobi" Alexander, and certain of Comverse's former officers and directors. This represents the second largest recovery in a securities litigation involving the backdating of options, as well as one of the largest recoveries - $60 million - from an individual officer-defendant, Comverse's founder and former CEO, Kobi Alexander.

"This is an extraordinary settlement for the Class," says Pomerantz partner Patrick V. Dahlstrom, who has overseen the litigation from its inception. "The $225 million recovery is approximately 22.5%-80% of the recoverable damages as calculated by the parties and their damages experts." He added, "The Class faced difficult challenges in the litigation, including proving loss causation with respect to many of the partial disclosures of the fraud alleged by Lead Plaintiff, and in the settlement negotiations had to contend with a company that has been unable to issue restated financials since 2006."

During the Fairness Hearing before Judge Garaufis, Mr. Dahlstrom reported to the Court that the Settlement had been terminated pursuant to a "blow out" provision in the week leading up to the hearing, which required additional negotiations to preserve the settlement for the Class. "We were fortunate to have the case heard before Judge Garaufis, who took a very thoughtful approach at the Fairness Hearing which recognized the value of this extraordinary settlement for the Class," said Mr. Dahlstrom.

At the close of the hearing, Judge Garaufis commended all of the parties for their work in reaching and preserving the Settlement, and in his written opinion commended Pomerantz, stating:

Lead Counsel has extensive experience in complex federal civil litigation, including securities fraud class actions. . . . The court also notes that, throughout this litigation, it has been impressed by Lead Counsel's acumen and diligence. The briefing has been thorough, clear, and convincing, and as far as the court can tell, Lead Counsel has not taken short cuts or relaxed its efforts at any stage of the litigation.

The Pomerantz Firm, with offices in New York, Chicago, Washington, D.C., Columbus, Ohio and Burlingame, California, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.

 



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