Welcome to the Castlight Shareholder Litigation Website
This website has been established to provide general information related to the proposed settlement of the Castlight Health, Inc. ("Castlight" or the "Company") Shareholder Litigation. The capitalized terms used on this website, and not defined herein, shall have the same meanings ascribed to them in the Stipulation of Settlement (the "Stipulation") dated June 2, 2016, which can be found and downloaded by clicking on the Case Documents tab above.
This is a securities class action litigation currently pending before the Honorable Marie S. Weiner in the Superior Court of California, County of San Mateo (the “Court”), and the litigation is known as In re Castlight Health, Inc. Shareholder Litigation, Lead Case No. CIV533203.
This is a securities class action brought against Castlight alleging that the Castlight Defendants and the Underwriter Defendants violated the Securities Act because the Registration Statement contained untrue statements of material fact and omitted other facts necessary to make the statements made therein not misleading. On July 22, 2015, Plaintiffs filed their Consolidated Complaint for Violations of §§11, 12(a)(2), and 15 of the Securities Act of 1933. Plaintiffs brought the action on behalf of all persons or entities who purchased Castlight Class B common stock pursuant or traceable to the Company’s Registration Statement and Prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s Initial Public Offering ("IPO").
Castlight is a provider of cloud-based software designed to give companies control over their rapidly escalating health care costs.
Plaintiffs allege that Defendants were required to disclose all known adverse trends that were negatively impacting sales and revenue growth for the Company. First, Plaintiffs allege that U.S. Securities and Exchange Commission Regulation S-K, 17 C.F.R. §229.303 (“Item 303”), required disclosure of the known adverse trends because Defendants allegedly knew that they were reasonably likely to have a material adverse impact on Castlight’s financial condition going forward. Plaintiffs allege that, at the time of the IPO, there were multiple undisclosed uncertainties and trends that were affecting Castlight and that were reasonably likely to have a material impact on Castlight’s revenues and profitability and, therefore, were required to be, but were not, disclosed. Second, Plaintiffs allege that Defendants failed to disclose implementation delays, increased expenses, and inability to maintain pricing consistent with the expected revenue growth on its principal product, and that those alleged omissions rendered the Registration Statement misleading, insofar as Plaintiffs also allege that the Registration Statement represented that the Company’s “early mover advantage” and “highly scalable business model” positioned Castlight for massive growth as it went public.
Defendants deny all of those allegations.
On March 9, 2016, the Court certified the consolidated action as a class action. The Court further certified Plaintiffs as the representatives of the Class, and designated Robbins Geller Rudman & Dowd LLP and Labaton Sucharow LLP to act as Class Counsel.
The Class is defined as all all persons who purchased Castlight Class B common stock pursuant or traceable to the Registration Statement issued in connection with Castlight’s March 14, 2014 initial public offering ("IPO") on or before September 10, 2014.
The Settlement, if approved, will result in the creation of a cash settlement amount of $9,500,000 (the “Settlement Amount”). The Settlement Amount, plus accrued interest (the “Settlement Fund”) and minus the costs of this Notice and all costs associated with the administration of the Settlement, as well as attorneys’ fees and expenses and the payment of Plaintiffs’ time and expenses in representing the Class, as approved by the Court (the “Net Settlement Fund”), will be distributed to Class Members pursuant to the Plan of Allocation that is described in the Notice.
Although the information on this website is intended to assist you, it does not replace the information contained in the Notice of Proposed Settlement of Class Action and the Stipulation, both of which can be found and downloaded from this website. We recommend that you read the Notice and other relevant case documents carefully.
YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT
|Submit a Proof of Claim Form
||The only way to be eligible to receive a payment from the Settlement. Proof of Claim Forms must be postmarked or submitted online on or before November 1, 2016.
||Get no payment. This is the only option that potentially allows you to ever be part of any other lawsuit against the Defendants or any other Released Persons about the legal claims being resolved by this Settlement. Exclusions must be postmarked on or before October 7, 2016.
||Write to the Court about why you do not like the Settlement, the Plan of Allocation, and/or the request for attorneys’ fees, costs, and expenses. You will still be a Member of the Class. Objections must be received by the Court and counsel on or before October 7, 2016.
|Go to the Hearing on October 28, 2016
||Ask to speak in Court about the fairness of the Settlement. Requests to speak must be received by the Court and counsel on or before October 7, 2016.
||Receive no payment. Give up your rights.