Accuray Incorporated (NYSE: ARAY) Investor Securities Class Action Lawsuit 07/22/2009

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Company Name(s): 
Case Name: 
Accuray Shareholder Class Action Lawsuit 07/22/2009
Case Status: 
Lawsuit Filed
Case Status: 
Settlement Approved
Affected Securities
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
Class Period Begin: 
Class Period End: 
Court of Filing: 
U.S. District Court for the Northern District of California
Deadline To File for Lead: 
Date Settled: 
Settlement Amount: 
Deadline to Participate in Settlement: 

December 8, 2011 - The court approved the settlement and entered the orders approving the plan of allocation, the motion for attorneys' fees and expenses, and dismissing the action with prejudice.

September 1, 2011 - The court held a final settlement hearing.

June 10, 2011 - The settlement was preliminary approved.

April 28, 2011 - Parties filed a stipulation of settlement.

October 14, 2010 - The defendants filed a motion to dismiss.

October 4, 2010 - The lead plaintiff filed a corrected amended complaint.

September 27, 2010 - The lead plaintiff filed an amended complaint.

August 31, 2010 - The judge granted the motion to dismiss.

February 8, 2010 - Defendants filed a motion to dismiss.

December 30, 2009 - Lead plaintiff filed a corrected consolidated amended complaint.

December 17, 2009 - Lead plaintiff filed a consolidated amended complaint.

October 26, 2009 - Lead plaintiff and lead counsel were appointed and all cases were consolidated.

September 21, 2009 - Lead plaintiff motions were filed.

August 19, 2009 -Another investor filed an additional complaint.

August 7, 2009 - Another investor filed a complaint.

July 22, 2009 - An investor in shares of Accuray Incorporated (NASDAQ: ARAY) filed a proposed securities class action lawsuit in the U.S. District Court for the Northern District of California on behalf of purchasers of Accuray Incorporated (NASDAQ: ARAY) common stock pursuant or traceable to Accuray Incorporated's Initial Public Offering (the “IPO”) on or about February 7, 2007, as well as purchasers of Accuray Incorporated's common stock between February 7, 2007 and August 19, 2008 over alleged violations of Federal Securities Laws by Accuray Incorporated and others.

According to the complaint the plaintiff alleges that Accuray Incorporated and certain of its officers and directors violated the Securities Act and the Exchange Act. By misrepresenting and failing to disclose between February 7, 2007 and August 19, 2009 material information concerning the quality and realistic likelihood of fulfillment of contracts in Accuray Incorporated's “backlog,” a figure representing the direct revenue that Accuray Incorporated expects to receive from the sale and servicing of the CyberKnife system. Then on August 19, 2008, Accuray Incorporated announced its fiscal fourth quarter and full year 2008 financial results for the period ended June 28, 2008 in a press release titled “Accuray Announces Results for the Fourth Quarter and Fiscal Year End 2008; 28 New Contracts Valued at $115.5 Million Signed in Fourth Quarter”. That same day, Accuray Incorporated held a conference call with analysts and reiterated the financial results in the press release and revealed that Accuray Incorporated removed another $39 million from backlog, so the lawsuit. Thus, Accuray Incorporated removed approximately $127 million in backlog during the last three quarters of fiscal 2008.

Accuray Incorporated, located in Sunnyvale, California, has developed an intelligent robotic radiosurgery system, the CyberKnife system, designed to treat solid tumors anywhere in the body as an alternative to traditional surgery. The CyberKnife system represents the next generation of radiosurgery systems, combining continuous image-guidance technology with a compact linear accelerator (linac) that has the ability to move in three dimensions according to a patient’s treatment plan. Accuray Incorporated reported in 2007 Total Revenue of $140.45million and in 2008 Total Revenue of $210.38million with an Net Income of $5.38million. Shares of Accuray Incorporated (NASDAQ: ARAY) traded recently at $6.52 per share, down from a 52weekHigh of $9.08 per share and $17.83 per share in early 2008.