LeapFrog Enterprises Litigation
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Frequently Asked Questions


  1. Why did I get the Notice?
  2. Why is this a class action?
  3. Why is there a settlement?
  4. How do I know if I am part of the Settlement?
  5. What does the Settlement provide?
  6. How much will my payment be?
  7. How can I receive a payment?
  8. When would I receive my payment?
  9. How do I get out of the proposed Settlement?
  10. If I do not exclude myself, can I sue the Defendants and the other Released Defendant Parties for the same thing later?
  11. If I exclude myself, can I get money from the proposed Settlement?
  12. How do I tell the Court that I object to the proposed Settlement?
  13. What is the difference between objecting and excluding myself?
  14. What happens if I do nothing at all?
  15. Do I have a lawyer in this case?
  16. How do I get more information about the proposed Settlement?
  17. How can I confirm that my claim has been received?

 



  1. Why did I get the Notice?

    You have received the Notice because the parties are seeking approval of a proposed Settlement on behalf of the Settlement Class in this Action, and you have been identified as a potential Settlement Class Member either from the transfer agent’s record of ownership of LeapFrog common stock or by your broker or custodian if you purchased or acquired LeapFrog stock in “street name.”

    The Court directed that the Notice be sent to Settlement Class Members because they have a right to know about the proposed Settlement of this class action lawsuit, and about all of their options, before the Court decides whether to approve the Settlement.

    The Notice explains the class action lawsuit, the Settlement, Settlement Class Members’ legal rights, what benefits are available, who is eligible for them, and how to get them.

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  2. Why is this a class action?

    In a class action, one or more persons or entities (in this case, the Lead Plaintiff) sue on behalf of people and entities who have similar claims. Together, these people and entities are referred to as a class, and each is a class member. One court resolves the issues for all class members at the same time, except for those class members who exclude themselves from the class.

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  3. Why is there a settlement?

    Lead Plaintiff made claims against Defendants on behalf of the Settlement Class. Defendants deny that they have done anything wrong or violated any statute and admit no liability. The Court has not decided in favor of the Defendants or the Settlement Class. Instead, both sides agreed to the Settlement to avoid the costs and risks of further litigation, including trial and post-trial appeals, and Lead Plaintiff agreed to the Settlement in order to ensure that Settlement Class Members will receive compensation. Lead Plaintiff and Lead Counsel believe the Settlement is in the best interest of all Settlement Class Members in light of the real possibility that continued litigation could result in no recovery at all.

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  4. How do I know if I am part of the Settlement?

    The Court directed that everyone who fits this description is a Settlement Class Member: all Persons that purchased or acquired LeapFrog common stock between May 5, 2014 and June 11, 2015, inclusive, except those Persons and entities that are excluded, as described in the Notice.

    PLEASE NOTE: RECEIPT OF THE NOTICE DOES NOT MEAN THAT YOU ARE A SETTLEMENT CLASS MEMBER OR THAT YOU WILL BE ENTITLED TO RECEIVE PROCEEDS FROM THE SETTLEMENT. IF YOU ARE A SETTLEMENT CLASS MEMBER AND YOU WISH TO BE ELIGIBLE TO PARTICIPATE IN THE DISTRIBUTION OF PROCEEDS FROM THE SETTLEMENT, YOU ARE REQUIRED TO SUBMIT THE CLAIM FORM THAT IS INCLUDED WITH THE NOTICE POSTMARKED OR SUBMITTED ONLINE NO LATER THAN AUGUST 8, 2018.

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  5. What does the Settlement provide?

    A settlement has been reached in the Action between Lead Plaintiff and Defendants, the terms and conditions of which are set forth in the Stipulation and the Exhibits thereto. The following description of the proposed Settlement is only a summary, and reference is made to the text of the Stipulation, on file with the Court or accessible on this website, for a full statement of its provisions.

    The Settlement Fund consists of Five Million, Five Hundred Thousand Dollars ($5,500,000.00) in cash, plus any interest earned thereon.

    A portion of the Settlement proceeds will be used to pay attorneys’ fees and expenses to Lead Plaintiff’s counsel ($1,650,000), to pay for the Notice and the processing of claims submitted by Settlement Class Members (approximately $200,000), to pay Taxes and to pay the time and expenses of Lead Plaintiff ($5,600). The balance of the Settlement Fund (the “Net Settlement Fund”) will be distributed, in accordance with the Plan of Allocation described in the Notice, to Settlement Class Members who submit valid and timely Proofs of Claim.

    The effectiveness of the Settlement is subject to a number of conditions and reference to the Stipulation is made for further particulars regarding these conditions.

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  6. How much will my payment be?

    Your share of the fund will depend on several things, including how many Settlement Class Members submit a timely and valid Proof of Claim, the total dollar amount of the claims represented by the valid Proofs of Claim that Settlement Class Members send in, the number of shares of LeapFrog common stock you purchased or acquired during the Class Period, how much you paid for the shares, when you purchased or acquired them, and if you sold your shares and for how much.

    By following the instructions in the Plan of Allocation, you can calculate your claim. It is unlikely that you will get a payment for the full amount of your claim. After all Settlement Class Members have sent in their Proofs of Claim, the payment you get will be a part of the Net Settlement Fund equal to your claim divided by the total of all valid claimants’ claims. See the Plan of Allocation beginning on page 10 of the Notice for more information on your claim.

    As discussed in the Notice, Lead Plaintiff’s damages consulting expert has estimated that the average recovery from the Settlement per allegedly damaged share of LeapFrog common stock would be $0.125 per share, before deduction of any Court-approved fees and expenses, and approximately $0.083 per allegedly damaged share, after deduction of the attorneys’ fees and expenses discussed in the Notice.

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  7. How can I receive a payment?

    You may submit a Proof of Claim as described in the Notice or on the File Claim tab. If you choose this option, you will share in the proceeds of the proposed Settlement if your claim is timely, valid, and entitled to a distribution under the Plan of Allocation described in the Notice and if the proposed Settlement is finally approved by the Court; and you will be bound by the Judgment and release to be entered by the Court as described in the Notice.

    TO PARTICIPATE IN THE DISTRIBUTION OF THE NET SETTLEMENT FUND, YOU MUST TIMELY SUBMIT A PROOF OF CLAIM. A Proof of Claim is enclosed with the Notice or it may be downloaded from this website.

    Please read the instructions carefully, fill out the Proof of Claim, sign it, and include all the documents the form requests. For instance, you must submit supporting documents for your transactions in LeapFrog stock, such as broker confirmation slips, brokerage account statements, an authorized statement from your broker reporting your transactions, or other similar documentation. You must mail or submit the Proof of Claim to the Claims Administrator so that it is postmarked or received no later than August 8, 2018. The Claim Form may be submitted via the File Claim tab. Unless the Court orders otherwise, if you do not timely submit a valid Proof of Claim, you will be barred from receiving any payments from the Net Settlement Fund, but will in all other respects be bound by the provisions of the Stipulation and the Judgment.

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  8. When would I receive my payment?

    The Court will hold a Settlement Hearing on October 18, 2018, at 1:30 p.m., to decide whether to approve the Settlement. If the Court approves the Settlement after that hearing, there might be appeals. It is always uncertain whether these appeals can be resolved, and resolving them can take time, perhaps more than a year. It also takes time for all the Proofs of Claim to be processed. Please be patient.

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  9. How do I get out of the proposed Settlement?

    The deadline to submit a timely request to be excluded from the Class was August 8, 2018.

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  10. If I do not exclude myself, can I sue the Defendants and the other Released Defendant Parties for the same thing later?

    No. Unless you exclude yourself, you give up any rights to sue the Defendants and the other Released Defendant Parties for any and all Released Claims. If you have a pending lawsuit against the Released Defendant Parties, speak to your lawyer in that case immediately. You must exclude yourself from this Action to continue your own lawsuit. Remember, the exclusion deadline is August 8, 2018.

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  11. If I exclude myself, can I get money from the proposed Settlement?

    No. If you exclude yourself, you may not send in a Proof of Claim to ask for any money. But, you may be able to sue or be part of a different lawsuit against the Defendants and the other Released Defendant Parties about the claims raised in this Action.

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  12. How do I tell the Court that I object to the proposed Settlement?

    Any Settlement Class Member who objects to any aspect of the Settlement, the Plan of Allocation, or the application for attorneys’ fees and expenses, may appear and be heard at the Settlement Hearing.

    The Court can only approve or deny the Settlement, not change its terms. You can ask the Court to deny approval by filing an objection.

    You may object to the proposed Settlement in writing. You may also appear at the Settlement Hearing, either in person or through your own attorney. If you appear through your own attorney you are responsible for paying that attorney. All written objections and supporting papers must (a) clearly identify the case name and number (In re LeapFrog Enterprises, Inc. Securities Litigation, Master File No. 3:15-cv-00347-EMC (N.D. Cal.)), (b) be submitted to the Court either by mailing them to the Clerk of the Court, United States District Court for the Northern District of California, 450 Golden Gate Avenue, San Francisco, California 94102, or by filing them in person at any location of the United States District Court for the Northern District of California. Such objections, papers, and briefs must be received or filed, not simply postmarked, on or before August 8, 2018.

    The notice of objection must demonstrate the objecting Person’s membership in the Settlement Class, including the number of shares of LeapFrog common stock purchased, otherwise acquired and sold during the Class Period and contain a statement of the reasons for objection. Only members of the Settlement Class who have submitted written notices of objection in this manner will be entitled to be heard at the Settlement Hearing, unless the Court orders otherwise. Any member of the Settlement Class who does not make his, her or its objection in the manner and time provided shall be deemed to have waived such objection and shall forever be foreclosed from making any objection to the fairness or adequacy of the proposed Settlement as set forth in the Stipulation, to the Plan of Allocation, or to the award of attorneys’ fees and expenses, unless otherwise ordered by the Court.

    Even if you object, you must still submit a Proof of Claim to be eligible for a cash payment from the Settlement. If you do not submit a Claim Form, you will not receive a payment.

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  13. What is the difference between objecting and excluding myself?

    Objecting is simply telling the Court that you do not like something about the proposed Settlement, the Plan of Allocation, or the fee and expense application. You can still recover from the Settlement. You can object only if you stay in the Settlement Class. Excluding yourself is telling the Court that you do not want to be part of the Settlement Class.

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  14. What happens if I do nothing at all?

    You may do nothing at all. If you choose this option, you will not share in the proceeds of the Settlement, but you will be bound by any judgment entered by the Court, and you shall be deemed to have, and by operation of the Judgment shall have, fully released all of the Released Claims against the Released Defendant Parties.

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  15. Do I have a lawyer in this case?

    The Court ordered that the law firms of Motley Rice LLC and Robbins Geller Rudman & Dowd LLP represent the Settlement Class, including you. These lawyers are called Lead Counsel. You will not be charged for these lawyers. They will be paid from the Settlement Fund to the extent the Court approves their application for fees and expenses. If you want to be represented by your own lawyer, you may hire one at your own expense.

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  16. How do I get more information about the proposed Settlement?

    The Notice contains only a summary of the terms of the proposed Settlement and does not describe all of the details of the Stipulation. For the precise terms and conditions of the Settlement, please see the Stipulation available on this website, by contacting Lead Counsel at (843) 216-9000 or (800) 449-4900, by accessing the Court docket in this case through the Court’s Public Access to Court Electronic Records (PACER) system at https://ecf.cand.uscourts.gov, or by visiting the office of the Clerk on the 16th floor of the Court for the United States District Court for the Northern District of California, 450 Golden Gate Avenue, San Francisco, California 94102, between 9:00 a.m. and 4:00 p.m., Monday through Friday, excluding Court holidays. DO NOT TELEPHONE THE COURT REGARDING THE NOTICE.

    If you have any questions about the Settlement of the Action, you may contact Lead Counsel by writing to:

    ROBBINS GELLER RUDMAN & DOWD LLP
    ELLEN GUSIKOFF STEWART
    655 West Broadway, Suite 1900
    San Diego, CA 92101
    EllenG@rgrdlaw.com
    MOTLEY RICE LLC
    CHRISTOPHER F. MORIARTY
    28 Bridgeside Blvd.
    Mount Pleasant, SC 29464
    jhughes@motleyrice.com
    bnorton@motleyrice.com
    cmoriarty@motleyrice.com

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  17. How can I confirm that my claim has been received?

    If you submitted your claim online, you should have received a confirmation e-mail which confirms that your claim has been received and provides your assigned claim number.  If you submitted your form by mail, or if you did not receive a confirmation email for a claim submitted online, to confirm receipt of your claim and receive your assigned claim number please contact the Claims Administrator at the phone numbers or e-mail address listed on the Contact Us tab and provide the full claimant name(s) and mailing address exactly as it was listed on the claim form which you submitted.

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