ModusLink Global Solutions, Inc.
This action sought to remedy losses incurred by ModusLink's shareholders as a result of Defendants materially false and misleading statements regarding ModusLink's business and operational practices. Specifically, Defendants made false and/or misleading statements and/or failed to disclose: (i) that the Company's accounting for rebates associated with volume discounts provided by vendors was improper and misleading; (ii) that the Company's financial statements during the Class Period did not provide a fair presentation of the Company's finances and operations; (iii) that, as a result, the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (iv) that the Company lacked adequate internal and financial controls; and (v) that, as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
Saxena White, serving as sole Lead Counsel, defeated Defendants’ Motion to Dismiss. In noting that Defendants’ primary challenge to Plaintiffs’ complaint was whether Plaintiffs had demonstrated that the Individual Defendants acted with the requisite state of mind, the Honorable Denise J. Casper held: “Plaintiffs have . . . not only provided the Court with allegations by confidential witnesses that support a contemporaneous knowledge of the alleged wrongdoing as well as motive and opportunity allegations, but have also provided the Court with a litany of other allegations bearing on the issue of scienter.” Judge Casper accordingly denied Defendants’ motion in its entirety, finding that “plaintiffs have stated a claim under Section 10(b) and Rule 10b-5,” and “have adequately pled their Section 20(a) claim.”
After the Court’s Order, the parties entered into the discovery phase of the litigation and began discussions towards a possible resolution of the action, including a full-day mediation session. As a result of these discussions, the parties agreed to a $4 million settlement to resolve the claims brought forth in the action. The Honorable Denise J. Casper entered an order and final judgment on March 11, 2015, providing final approval to the Settlement, finding it to be fair, adequate and reasonable in all respects.