Maxwell Technologies, Inc.
On March 13, 2013, a complaint was filed in the United States District Court for the Southern District of California against Maxwell Technologies, Inc. and certain of the Company’s senior executives for violations of the federal securities laws. The action alleged that Defendants misled investors by, among other things, (i) overstating Maxwell’s revenues and earnings in 2011 and 2012; (ii) reporting revenues prior to the time the sales price was fixed and/or collection was reasonably assured; and (iii) having internal accounting controls that were deficient and which permitted the premature recognition of revenue.
On October 24, 2013, the Honorable Roger T. Benitez issued an Order consolidating the related actions, appointing Clearwater as Lead Plaintiff and appointing Saxena White as Lead Counsel. In the Order, Judge Benitez noted, among other things, that “Saxena White has extensive experience litigating securities class actions, and has successfully prosecuted numerous securities fraud class actions on behalf of investors.”
After filing two amended consolidated complaints, the parties began discussions towards a possible resolution of the action, including a full-day mediation before Jed Melnick, Esq. of JAMS. As a result of these efforts, the parties agreed to a settlement pursuant to which Defendants would pay $3.3 million to resolve the claims brought forth in the action. On November 3, 2014, the Court granted preliminary approval of the settlement and scheduled a fairness hearing for February 5, 2015. On February 17, 2015, the Court entered an Order and Final Judgment of Dismissal With Prejudice, which effectuated the Court’s holding at the final approval hearing.