Settlement of Zubair Patel v. L-3 Communications Holdings, Inc., et al.
Civil Action No. 1:14-cv-06038-VEC
The parties have reached a settlement of this action, pending in the United States District Court for the Southern District of New York. The settlement provides for the payment of $34,500,000.00 for the benefit of eligible Class Members. Lead Plaintiffs City of Pontiac General Employees’ Retirement System, Local 1205 Pension Plan, and City of Taylor Police and Fire Retirement System alleged that L-3 Communications Holdings, Inc. (now known as L3 Technologies, Inc. and referred to below as “L3” or the “Company”) made false and misleading statements and failed to disclose that (i) L3’s financial statements contained errors related to the improper deferral of cost overruns on a fixed-price maintenance and logistics support contract resulting in overstatement of operating income; (ii) net sales with respect to the fixed-price maintenance and logistics support contract were overstated; (iii) L3 lacked adequate internal controls over financial reporting; and (iv) as a result of the foregoing, L3’s financial statements were materially false and misleading at all relevant times.
The Class consists of all persons who purchased or otherwise acquired L3 common stock at any time during the period from January 30, 2014 through July 30, 2014, inclusive. Excluded from the Class are: L3, persons who served as directors of L3 during the Class Period, Section 16 officers of L3 and officers of the Company’s Aerospace Systems segment during the Class Period, members of such excluded person’s immediate families and their legal representatives, heirs, successors or assigns, and any entity in which any excluded person has or had a controlling interest. Also excluded from the Class is any Class Member that validly and timely requests exclusion in accordance with the requirements set by the Court.
The settlement was preliminarily approved by the Court on March 10, 2017. The Court had previously scheduled a final approval hearing for August 10, 2017 at 2:00 p.m. but because of a Court scheduling conflict, the Court has rescheduled the final approval hearing to August 16, 2017 at 2:00 p.m.
If you are a Class Member, to receive a payment from the settlement proceeds, you must submit a claim form postmarked no later than July 29, 2017. The claim form can be obtained by clicking on the Proof of Claim and Release link below.
Alternatively, you can submit your claim online. Online claims must be submitted by July 29, 2017. For more information, and to file your claim online, visit the Claims Administrator’s L3 Securities Litigation website at www.L3Technologiessecuritieslitigation.com.
If you have any questions about the settlement or the litigation, please contact Rick Nelson at 1-800-449-4900.