Facts

Lead plaintiff Arkansas Teacher Retirement System filed a class action against Extreme Networks Inc. in relation to shareholders' purchases of Extreme's common-stock and exchange-traded options from Sept. 12, 2013 through April 9, 2015.

PLAINTIFFS' CONTENTIONS: Plaintiffs alleged violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. Specifically, plaintiffs claimed that Extreme and its executives made statements and omissions misleading shareholders regarding its progress relating to integration of a competitor, which resulted in artificially inflated stock prices.

DEFENDANT'S CONTENTIONS: Extreme denied the allegations.

Result

The court granted preliminary approval of the parties' settlement agreement. Under the agreement, Extreme agreed to pay $7 million for the benefit of the settlement class, which included $1.75 million in fees and $230,000 in litigation expenses.

Other Information

A final approval hearing date was set for June 20.