A10 Securities Settlement
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The information contained on this web page is only a summary of information presented in more detail in the Notice of Proposed Settlement of Class Action (the “Notice”), which you can access by clicking here.  Since this website is just a summary, you should review the Notice for additional information.

If you are a Class Member, your legal rights will be affected by this Settlement whether you act or do not act.

Please read the Notice carefully

IF YOU PURCHASED OR OTHERWISE ACQUIRED A10 NETWORKS, INC. (“A10” OR THE “COMPANY”) COMMON STOCK PURSUANT AND/OR TRACEABLE TO THE REGISTRATION STATEMENT AND PROSPECTUS FOR THE COMPANY’S MARCH 21, 2014 INITIAL PUBLIC OFFERING (“IPO”) AND WERE DAMAGED THERBY, YOU MAY BE ENTITLED TO A PAYMENT FROM A CLASS ACTION SETTLEMENT.

IMPORTANT DATES AND DEADLINES

SUBMIT A CLAIM FORM POSTMARKED NO

LATER THAN FEBRUARY 10, 2017.

The only way to get a payment.

EXCLUDE YOURSELF FROM THE CLASS BY

SUBMITTING A WRITTEN REQUEST FOR

EXCLUSION POSTMARKED NO LATER THAN

DECEMBER 14, 2016.

Get no payment. This is the only option that allows you to ever be

part of any other lawsuit against the Defendants and their Related

Persons about the claims in this case.

OBJECT TO THE SETTLEMENT BY SUBMITTING A WRITTEN OBJECTION POSTMARKED NO LATER THAN DECEMBER 14, 2016.

Write to the Court about why you don’t like the Settlement.

GO TO A HEARING ON JANUARY 13, 2017, AT

9:00 A.M.

Ask to speak in Court about the fairness of the Settlement.

DO NOTHING

Get no payment. Give up rights.

 

The Settlement Fairness Hearing

The Court will hold a Settlement Fairness Hearing on January 13, 2017, at 9:00 a.m., before the Honorable Peter H. Kirwan at the Superior Court of California, County of Santa Clara, 191 North First Street, San Jose, CA 95113, for the purpose of determining whether: (1) the Settlement of the Litigation for $9,837,500 in cash should be approved by the Court as fair, reasonable, and adequate; (2) to award Plaintiffs’ Counsel attorneys’ fees and expenses out of the Settlement Fund; (3) to pay Plaintiffs for the time and expenses they incurred in representing the Class out of the Settlement Fund; and (4) the Plan of Allocation should be approved by the Court. The Court may adjourn or continue the Settlement Fairness Hearing without further notice to Members of the Class.

What is this case about?

On January 29, 2015, City of Warren Police and Fire Retirement System filed a complaint for violations of federal securities laws against Defendants. Two related cases, making substantially similar allegations, were subsequently filed in the case, captioned Arkansas Teacher Retirement System v. A10 Networks, Inc., et al., Case No. 1-15-cv-278575 and Kaveney v. A10 Networks, Inc., et al., Case No. 1-15-cv-279006. On June 1, 2015, the Court entered an Order Relating and Consolidating Cases and Appointing Counsel to Lead Efforts and Coordinate Communications Between Plaintiffs and Defendants.

Plaintiffs, who purchased A10 common stock issued in connection with A10’s IPO on or about March 21, 2014, alleged that Defendants issued a materially false and misleading Registration Statement and Prospectus that misled investors regarding A10’s revenue growth and increased demand for its products. Defendants deny that the Registration Statement and Prospectus contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading. Plaintiffs’ Consolidated Class Action Complaint for Violations of the Securities Act of 1933 (the “Complaint”) was filed on June 30, 2015.

On July 31, 2015, Defendants filed a joint demurrer to the Complaint arguing a failure to state facts sufficient to constitute a cause of action. In addition, A10 and the Individual Defendants filed a motion to strike. Plaintiffs filed their oppositions to both motions on August 31, 2015. The Court heard argument on November 6, 2015, and on November 12, 2015, the Court issued its Order Re: (1) Demurrer to the Complaint; (2) Motion to Strike Portions of the Complaint. The November 12, 2015, Order overruled the motion to strike in its entirety and overruled the demurrer except with regard to Plaintiffs’ §12(a)(2) claim as asserted against A10, finding that Plaintiffs had not sufficiently alleged that A10 was a statutory “seller,” and granted Plaintiffs leave to amend. On November 23, 2015, Plaintiffs filed their First Amended Consolidated Class Action Complaint for Violations of the Securities Act of 1933 (the “Amended Complaint”).

On January 8, 2016, Defendants answered the Amended Complaint, generally denying the allegations and asserting various affirmative defenses.

The parties thereafter agreed to attend a mediation session conducted by a third-party neutral, the Hon. Layn R. Phillips (Ret.). Plaintiffs and Defendants submitted and exchanged mediation statements summarizing their respective positions. The mediation session was held on March 22, 2016. While the Settling Parties did not reach an agreement to settle the Litigation at the mediation, the Settling Parties continued their negotiations through Judge Phillips. These efforts culminated with the Settling Parties agreeing to settle the Litigation for $9,837,500 in cash.

THE COURT HAS NOT RULED AS TO WHETHER DEFENDANTS ARE LIABLE TO PLAINTIFFS OR TO THE CLASS. THE NOTICE IS NOT INTENDED TO BE AN EXPRESSION OF ANY OPINION BY THE COURT WITH RESPECT TO THE TRUTH OF THE ALLEGATIONS IN THE LAWSUIT OR THE MERITS OF THE CLAIMS OR DEFENSES ASSERTED. THE NOTICE IS SOLELY TO ADVISE YOU OF THE PENDENCY OF THE LITIGATION AND PROPOSED SETTLEMENT THEREOF AND YOUR RIGHTS IN CONNECTION WITH THAT SETTLEMENT.

The Settlement Benefits

The Settlement, if approved, will result in the creation of a cash settlement fund of $9,837,500 (the “Settlement Amount”). The Settlement Amount, plus accrued interest (the “Settlement Fund”) and minus the costs of the Notice and all costs associated with the administration of the Settlement, as well as any attorneys’ fees, expenses, and payment to Plaintiffs for their time and expenses in representing the Class that may be approved by the Court (the “Net Settlement Fund”), will be distributed to Class Members pursuant to the Plan of Allocation that is described in the Notice.

Plaintiffs estimate that there are approximately 12,845,000 shares of A10 common stock which may have been damaged during the period March 21, 2014 through January 29, 2015 (the “Class Period”). Plaintiffs estimate that the average recovery under the Settlement is roughly $0.76 per damaged share before notice and administration costs and the attorneys’ fee and expense award as well as payments to the Plaintiffs for their time and expenses in representing the Class as determined by the Court. Should the Court award the requested attorneys’ fees of 25% of the Settlement Fund (or $2,459,375), Plaintiffs’ Counsel’s expenses of up to $175,000, awards of $2,500 to each Plaintiff for his or its representation of the Class and the maximum estimated cost of notice and administration of the Settlement of $375,000, the average per share recovery would be approximately $0.53. Using certain estimates of the number of claims that are going to be filed (30%) and the number of estimated claims that are going to be valid (70% of the 30%), it is estimated that approximately 2,700,000 shares will participate in the Settlement and the average recovery will be approximately $2.52 per share. Of course, these are just estimates; a Class Member’s actual recovery will be a proportion of the Net Settlement Fund determined by that claimant’s recognized claim as compared to the total recognized claims submitted. An individual Class Member may receive more or less than this average amount depending on the number of claims submitted, when during the Class Period a Class Member purchased or acquired A10 common stock, the purchase or acquisition price paid, and whether those shares were held at the end of the Class Period or sold during the Class Period, and, if sold, when they were sold and the amount received. See the Plan of Allocation on pages 3 and 4 of the Notice for  more information on your recognized claim.

The Rights of Class Members

If you are a Class Member, you have the following options:

Submit a Claim Form

In order to qualify for a payment, you must timely submit a Proof of Claim. A Proof of Claim is enclosed with the Notice or it may be downloaded by clicking here. Read the instructions carefully, fill out the Proof of Claim, include all the documents the form asks for, sign it, and mail so that it is postmarked or received no later than February 10, 2017. You may also submit your Proof of Claim form online by clicking here. If you do not submit a valid Proof of Claim form, you will not receive a payment from the Net Settlement Fund; however, unless you expressly exclude yourself from the Class as described below, you will still be bound in all other respects by the Settlement, the Judgment, and the releases contained in them.

Exclude yourself from the Settlement Class

If you want to keep the right to sue or continue to sue Defendants on your own about the legal issues in this case, then you must take steps to get out of the Class. This is called excluding yourself from, or “opting out” of, the Class.

To exclude yourself from the Class, you must send a letter by mail saying that you want to be excluded from the Class in the following action: In re A10 Networks, Inc. Shareholder Litigation, Lead Case No. 1-15-CV-276207. You must include your name, address, telephone number, and sign the letter. You must also include the number of shares of A10 common stock you purchased or acquired that are subject to the Litigation. Your exclusion request must be postmarked no later than December 14, 2016 and sent to the Claims Administrator.

Object to the Settlement, Plan of Allocation, and Request for Fees and Expenses

If you are a Class Member, you may object to the terms of the Settlement and the related relief. Whether or not you object to the terms of the Settlement, you may also object to the requested attorneys’ fees, costs and expenses, the payment to Plaintiffs for their time and expenses, and/or the Plan of Allocation. In order for any objection to be considered, you must file a written statement, accompanied by proof of Class membership, with the Court, and send it to Plaintiffs’ Counsel postmarked by December 14, 2016.

Do Nothing

If you choose this option, you will not share in the proceeds of the Settlement, but you will be bound by any judgment entered by the Court, and you shall be deemed to have, and by operation of the Judgment shall have, fully released all of the Released Claims in this case against Defendants and their Related Persons.

Further Information:

This website and the Notice contain only a summary of the terms of the proposed Settlement. The records in the Litigation may be examined and copied at any time during regular office hours, and subject to customary copying fees, at the office of the Clerk of the Superior Court of California, County of Santa Clara. In addition, all of the Settlement documents, including the Stipulation, the Notice, the Proof of Claim form, and proposed Judgment may be obtained through this website or by contacting the Claims Administrator. In addition, you may contact Plaintiffs’ Counsel if you have any questions about the Litigation or the Settlement or want to obtain Settlement documents.

Claims Administrator:

A10 Securities Litigation
Claims Administrator
c/o A.B. Data, Ltd.
PO Box 173012
Milwaukee, WI  53217
877-241-7503
info@A10SECURITIESSETTLEMENT.com
www.A10SECURITIESSETTLEMENT.com

Plaintiffs’ Counsel:

ROBBIN GELLER RUDMAN & DOWD LLP
Rick Nelson
Shareholder Relations
655 West Broadway, Suite 1900
San Diego, CA 92101
1-800-449-4900

LABATON SUCHAROW LLP
Nicole Zeiss
Settlement Counsel
140 Broadway
New York, NY 10005
1-888-219-6877
settlementquestions@labaton.com
www.labaton.com

If you have questions, you may call the In re A10 Networks, Inc. Shareholder Litigation Help Line at 877-241-7503 or email info@A10SECURITIESSETTLEMENT.com.

 

 

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