SupportSoft, Inc. Derivative Litigation
Summary of Case and Settlement: Shepherd Finkelman Miller & Shah filed a shareholder derivative complaint on behalf of SupportSoft, Inc. (“SupportSoft”) in December 2005 against Support Soft Systems, Inc. and various officers and directors in the Superior Court of California, San Mateo County, alleging breach of fiduciary duties, gross negligence, breach of contract, breach of duty of loyalty, and violation of California Corporations Code Section 25402 against Defendants. The action was filed on behalf of SupportSoft, seeking to recover damages resulting from Defendants’ conduct. Specifically, the case alleges that Defendants caused the Company to issue false and misleading statements through press releases and conference calls. These statements and omissions were deliberately made to conceal problems in SupportSoft’s business and in order to artificially inflate SupportSoft’s stock price. Defendants have harmed the Company by exposing it to potentially huge liability in a series of class action cases filed in the United States District Court for the Northern District of California by defrauded purchasers of SupportSoft’s stock. Plaintiff in this derivative action sought to recover damages on claims asserted on behalf of SupportSoft.
The parties have entered into a Stipulation to settle this matter. The Stipulation includes key corporate governance changes at SupportSoft, including the hiring of a new Chief Executive Officer and Chief Financial Officer; the addition of four new SupportSoft directors, three of whom are independent; reforms concerning the Board of Director responsibilities; Board education and training; reforms concerning auditors and the compensation of executives; and changes to the Nominating and Corporate Governance Committee. To view the Stipulation of Settlement in this matter, please click on the appropriate link below.
On November 13, 2007, Plaintiff filed a Motion for Preliminary Approval of Settlement in this matter. A hearing on this motion was held before the Court on December 3, 2007. The Court preliminarily approved the Stipulation and Settlement terms contained therein. To view or download a copy of the Stipulation, please click on the appropriate link below. A final approval hearing will be held on February 11, 2008. Parties wishing to object to the settlement must do so no later than January 28, 2008.
Final approval of the derivative settlement was granted on February 15, 2008.
More Information: If you would like to receive additional information on the settlement, please click here.
Settlement Information
This page last updated: 2010-04-08 17:03:13