PLYMOUTH, Mass., Dec. 04, 2015 (GLOBE NEWSWIRE) -- Plymouth County Retirement System (Plymouth County) announced today that the fund achieved an $8.55 million settlement in a securities class action, Plymouth County Retirement System v. Model N, Inc., No. CIV 530291, against Model N, Inc. (Model N), a leading revenue management software company for the life sciences and technology industry, and certain of its directors, officers, and underwriters. The settlement is subject to the approval of the Superior Court of California for the County of San Mateo, in Redwood City, California.
On March 20, 2014, Model N went public in an initial public offering (IPO). This IPO was successful for the company, its underwriters, and the venture capital firm that collectively sold 7.751 million shares of Model N common stock to the public at $15.50 per share, raising more than $108 million in gross proceeds for the company.
Represented by co-lead counsel Labaton Sucharow LLP and Robbins Geller Rudman & Dowd LLP, Plymouth County and certain named individual plaintiffs alleged that the offering materials for the IPO, in violation of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933, made inaccurate statements and omitted adverse, material facts about Model N’s true financial condition that the company was required to disclose. Specifically, the plaintiffs alleged that the offering materials failed to disclose that, at the time of the IPO, Model N was experiencing sales execution challenges—the inability to close and book sales. These challenges reversed the booking and revenue trends reported in Model N’s offering materials, causing future bookings and revenue to decline. At the time the action was filed, Model N’s stock was trading as low as $9.50 per share—a decline of 38 percent from the IPO price.
“Plymouth County is committed to protecting the interests of its members, and we believe it is our duty to pursue recovery for our members and the class when the securities laws have been violated. We are pleased with the result and are happy to bring the settlement back to the class and seek the Court’s approval,” said Treasurer Thomas J. O'Brien, Chairman of the Plymouth County Retirement Board.
About Plymouth County Retirement System
The Plymouth County Retirement System was established under the provisions of Chapter 400 of the Acts of 1936 and became operative on January 1, 1937. Today, the retirement fund has more than $800M in assets and serves over 12,000 active and retired members of the system. For more information, visit http://www.pcr-ma.org/.
About Labaton Sucharow LLP
Labaton Sucharow prosecutes precedent-setting class actions, recovering billions of dollars on behalf of defrauded consumers and investors. The Firm’s successful reputation is built not only on its team of 60 attorneys, but also on its industry-leading in-house investigators, financial analysts, and forensic accountants. The Firm litigates in the areas of securities, antitrust, and consumer protection law. For more information, visit www.labaton.com.
About Robbins Geller Rudman & Dowd LLP
Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $2 trillion. The firm has obtained many of the largest recoveries in history and has been ranked number one in the number of shareholder class action recoveries in MSCI’s Top SCAS 50 every year since 2003. Please visit www.rgrdlaw.com for more information.