Case Information: Applied Signal Technology, Inc.

This case covers all purchasers of the common stock of Applied Signal Technology, Inc. (“Applied Signal”) during the period from August 24, 2004 through February 22, 2005.
 
Izard Nobel LLP (f/k/a Schatz Nobel Izard, P.C.) was appointed as Lead Counsel by the United States District Court for the Northern District of California on July 14, 2005.   An Amended Complaint, filed on August 12, 2005, alleges that Defendants misled the market as to Applied Signal’s backlog by failing to disclose the existence of material “stop work” orders issued by the government, its only client. 

Defendants’ Motion to Dismiss the Complaint was granted on February 28, 2006.  Plaintiffs appealed the ruling in the U.S. Court of Appeals for the Ninth Circuit.  On June 5, 2008, Chief Judge Alex Kozinski issued a decision reversing the District Court's Order and finding that the Plaintiffs had plead with sufficient particularity a strong inference of fraudulent intent as required by the Private Securities Litigation Reform Act. 

The parties agreed to a settlement in the amount of $2.7 million, which was approved by the Court on July 30, 2009.  On May 21, 2010, Plaintiff filed a motion for the distribution of the settlement funds.