IF YOU PURCHASED SHARES OF LOGITECH COMMON STOCK ON THE NASDAQ GLOBAL SELECT MARKET (THE “SECURITY”) DURING THE PERIOD MAY 28, 2011 THROUGH JULY 27, 2011, INCLUSIVE (THE “RECOVERY PERIOD”), YOU MAY BE ELIGIBLE TO RECOVER FROM THE LOGITECH FAIR FUND.
On April 19, 2016, the Securities and Exchange Commission (the “Commission”) issued an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing Cease-and-Desist Orders and Penalties (the “Order”) against Logitech International, S.A., Michael Doktorczyk, and Sherralyn Bolles (collectively, the “Respondents”). In the Order, the Commission found Logitech responsible for recurring instances of improper accounting between 2008 and 2013 related to a product write-down, warranty liabilities, and revenue recognition. The Commission further found Doktorczyk and Bolles, both former officers of Logitech, responsible for the improper accounting for warranty liabilities that occurred during their employment. The Commission ordered Logitech, Doktorczyk, and Bolles to pay civil money penalties of $7,500,000.00, $50,000.00, and $25,000.00, respectively. The Respondents have since paid in full and the Commission holds more than $7.575 million, comprised of the civil money penalties paid by the Respondents and accrued interest.
On February 27, 2018, the Commission established a Fair Fund, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended, so that the $7.575 million in civil money penalties paid by the Respondents can be distributed for the benefit of the injured investors (the “Logitech Fair Fund”). The Logitech Fair Fund is deposited in an interest bearing account at the United States Treasury Department’s Bureau of the Fiscal Service. The assets of the Logitech Fair Fund are subject to the continuing jurisdiction and control of the Commission.
By Order dated October 26, 2018, the Commission approved a plan of distribution to distribute the funds collected from the Respondents to investors who were harmed by the conduct described in the Order (the “Plan”) and, in particular, investors who purchased shares of Logitech common stock on the Nasdaq Global Select Market at inflated prices during the period of May 28, 2011 through July 27, 2011, inclusive.
To qualify for a payment from the Logitech Fair Fund, you must satisfy certain eligibility criteria that are described in detail in the Distribution Plan. Those criteria include, but are not limited to, the following:
(1) you must have purchased the Security during the Recovery Period; (2) your approved transactions must calculate to an Eligible Loss Amount as calculated under the Plan; and (3) your Distribution Payment must equal or exceed $10.00.
Excluded from eligibility are Logitech International, S.A., Michael Doktorczyk, Sherralyn Bolles, the Respondents in the Administrative Action, or their assigns, heirs, spouses, parents, dependents, or controlled entities; Erik Bardman and Jennifer F. Wolf, the Defendants in the related civil action, SEC v. Bardman, et al., Civ. Act. No. 3:16-2023 (N.D. Ca;.), or their assigns, heirs, spouses, parents, dependents, or controlled entities; the Fund Administrator, its employees, and those persons assisting the Fund Administration in its role as the Fund Administrator.