NEW YORK-LAWFUEL – Legal News, Legal Jobs –Labaton Sucharow & Rudoff LLP announces that it has signed a Stipulation of Settlement, on behalf of its client the Genesee County Employees’ Retirement System, to settle the securities class action titled Desert Orchid Partners, L.L.C. v. Transaction Systems Architects, Inc., No. 02 CV 553 (D. Neb.), for $24.5 million in cash. The proposed Settlement is subject to Court approval.
The proposed Settlement will resolve claims brought by Genesee County, as Lead Plaintiff, on behalf of a class of persons and entities that purchased the common stock of Transaction Systems Architects, Inc. between January 21, 1999 and November 19, 2002 (the “Class Period”). Labaton Sucharow is the Court-appointed Lead Counsel for Lead Plaintiff Genesee County. Labaton Sucharow and Genesee County believe the proposed Settlement represents an excellent result for the Class given the stage of the litigation, the ranges of possible recovery, and the myriad risks of continued litigation.
In the litigation, Genesee County generally alleged that TSA and certain of its former executives, during the Class Period, prematurely recognized millions of dollars of revenue from certain software licensing arrangements and issued annual and quarterly financial statements that did not conform with generally accepted accounting principles (GAAP), in violation of the Securities Exchange Act of 1934.
According to Warren Vyvyan, Chairman of the Board of the Genesee County Employees’ Retirement Commission, “We are satisfied that this settlement will serve as a deterrent to corporate fraud and are pleased to present the proposed Settlement to the Court for approval.” George Martini, Controller of Genesee County and Plan Administrator of the Genesee County Employees’ Retirement System, stated: “We believe the result achieved by our counsel, Labaton Sucharow & Rudoff LLP, is indeed a good one for our beneficiaries, and shareholders will benefit from the substantial sum recovered.” Emily C. Komlossy, Esq. a partner with Labaton Sucharow and lead counsel for Genesee County in this action, noted “From the outset, it was our goal to achieve a positive outcome in this case, and we are, as well, very pleased with the result.”
The parties expect to file the Settlement Agreement and exhibits with the Court and seek preliminary approval of the Settlement shortly. This press release is not a Court-approved notice to Class members. If the Court grants preliminary approval to the Settlement, a Court-approved notice will be mailed to Class members within the next several weeks.
About the Genesee County Employees’ Retirement System
The Genesee County Employees’ Retirement System is a multiple-employer public pension plan that provides retirement and survivor benefits for general and police, roads, mental health, sanitation, library and other employees of Genesee County and its various offices, boards, and department, and employees, embracing the City of Flint and environs. The Retirement System is overseen by an elected and appointed nine-member Board of Retirement Commissioners, and presently holds more than $473 million in assets on behalf of approximately 2,800 beneficiaries.
About Labaton Sucharow & Rudoff LLP
Labaton Sucharow & Rudoff LLP, with offices in New York City and Florida, is among the country’s premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 43 years and has often been recognized for its reputation for excellence by the courts.