Authentidate Shareholder Class Action Settled
JANUARY 2011 - According to the Notice:
The Class: Persons or entities who purchased Authentidate common stock (CUSIP No. 052666104) during the period from and including July 16, 2004 through and including May 27, 2005, subject to the exclusions stated below (the “Class”).
Settlement Fund: Authentidate or its insurer will pay $1,900,000 in cash into an interest-bearing account on behalf of the Class (the “Settlement Fund”). The cost of administering this Settlement and notifying shareholders will be paid out of the Settlement Fund. Your right to share in any recovery, and the amount, if any, that you may receive, will depend on numerous factors stated below. Lead Plaintiff (defined below) estimates that the average recovery per share of common stock held by persons or entities entitled to be Class Members, will be approximately $0.137 before deduction of any Court-approved attorneys’ fees and expenses for Lead Plaintiff’s Counsel (defined below). Please note that this amount is only an estimate.
The Action: The Settlement resolves a class action in which Lead Plaintiff alleges, on behalf of itself and the Class, that Defendants violated federal securities laws during the period from July 16, 2004 through May 27, 2005 (the “Class Period”) by failing to disclose that Authentidate was not achieving performance metrics under a contract with the United States Postal Service for the sale of electronic postal marks, and that when Authentidate reported that it received a second notice from the Postal Service that it intended to cancel the contract for failure to achieve the performance metrics, the market price of Authentidate common stock declined.
Defendants deny all claims of wrongdoing and damages to Lead Plaintiff and the Class.