UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF TEXAS

DALLAS DIVISION

MATT BRODY, on behalf of himself §

and all others similarly situated, §

§ Civil Action No. 3:04-CV-1931-K

Plaintiffs, § ECF

§

vs. §

§

ZIX CORPORATION, RONALD A. §

WOESSNER, JOHN A. RYAN, §

DANIEL S. NUTKIS, STEVE M.YORK §

and DENNIS F. HEATHCOTE, §

§

Defendants. §

APPENDIX IN SUPPORT OF PLAINTIFF’S MOTION FOR CLASS CERTIFICATION

App. 1

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 1 of 128
TABLE OF CONTENTS

PAGE

1. Declaration of Scott D. Hakala ............................................. 5

Exhibit A: Scott Hakala curriculum vitae . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Exhibit B: Event Study ............................................... 31

Exhibit C: Zix Corporation Trade Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

Exhibit D: Reported Institutional Holdings of Zix Corporation . . . . . . . . . . . . . . . . 66

2. Declaration of Roger F. Claxton ........................................... 68

Exhibit A: firm biography for Murray, Frank & Sailer, LLP . . . . . . . . . . . . . . . . . . 71

Exhibit B: firm biography for Schiffrin & Barroway, LLP . . . . . . . . . . . . . . . . . . . . 86

Exhibit C: firm biography for Claxton & Hill, PLLC . . . . . . . . . . . . . . . . . . . . . . . 122

APP. 2

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 2 of 128
Dated: April 13, 2007 Respectfully submitted,

CLAXTON & HILL

s/Roger F. Claxton

Roger F. Claxton

State Bar No. 04329000

Robert J. Hill

State Bar No. 09652100 

3131 McKinney Avenue, Suite 700

Dallas, Texas 75204

Telephone: (214) 969-9029

Facsimile: (214) 953-0583 

Liaison Counsel for Lead Plaintiff

Eric Lechtzin

Mark Danek

SCHIFFRIN & BARROWAY, LLP

280 King of Prussia Road

Radnor, PA 19087

Telephone: (610) 667-7706

Facsimile: (610) 667-7056

Marvin L. Frank

Lawrence D. McCabe

MURRAY, FRANK & SAILER LLP

275 Madison Avenue, Suite 801

New York, NY 10016

Telephone: (212) 682-1818

Facsimile: (212) 682-1892

Co-Lead Counsel for Lead Plaintiff

App. 3

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 3 of 128
CERTIFICATE OF SERVICE

I hereby certify that on this 13th day of April, 2007, I electronically filed the foregoing

document with the clerk of court for the U.S. District Court, Northern District of Texas, using the

electronic case filing system of the court. The electronic case filing system sent a “Notice of

Electronic Filing” to the following attorneys of record who have consented in writing to accept

this notice as service of this document by electronic means:

Gerard G. Pecht

FULBRIGHT & JAWORSKI L.L.P.

1301 McKinney, Suite 5100

Houston, Texas 77010-3095

gpecht@fulbright.com

Karl G. Dial

FULBRIGHT & JAWORSKI L.L.P.

Texas Commerce Bank Tower

2200 Ross Avenue, Suite 2800

Dallas, Texas 75201

kdial@fulbright.com

I further certify that a true and correct copy of the foregoing document was sent by first

class mail to counsel listed below that have not consented in writing to accept this notice by

electronic means:

Eric J. Belfi

Marvin L. Frank

Lawrence D. McCabe

Murray, Frank & Sailer LLP

275 Madison Avenue, Suite 801

New York, NY 10016

Eric Lechtzin

Heather Tashman

Schiffrin & Barroway, LLP

280 King of Prussia Road

Radnor, PA 19087

Thomas A. Dubbs

Goodkind Labaton Rudoff & Sucharow

100 Park Avenue

New York, NY 10017

Frank E. Goodrich

Baron & Budd

3102 Oak Lawn Avenue, Suite 1100

Dallas, Texas 75219

Jeffrey S. Nobel

Andrew M. Schatz

Schatz & Nobel

1 Corporate Center, Suite 1700

Hartford, CT 06109

s/Roger F. Claxton

Roger F. Claxton

App. 4

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 4 of 128
EXHIBIT 1

App. 5

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 5 of 128
Expert Report and Declaration on Market Efficiency

by Scott D. Hakala, Ph.D., CFA

1

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF TEXAS

DALLAS DIVISION

__________________________________________

MATT BRODY, on behalf of himself and all : Civ. Action No. 3:04-CV-1931-K

others similarly situated, :

:

:

Plaintiff, :

:

vs. :

:

ZIX CORPORATION, RONALD A. WOESSNER, :

JOHN A. RYAN, DANIEL S. NUTKIS, :

STEVE M. YORK and DENNIS F. :

HEATHCOTE :

Defendants. : 

: 

__________________________________________: 

DECLARATION OF SCOTT D. HAKALA, PH.D, CFA

REGARDING MARKET EFFICIENCY

I. Background and Qualifications of the Expert

1. I am a director of CBIZ Valuation Group, LLC, a national business valuation and 

consulting firm that operates as a wholly owned subsidiary of CBIZ, Inc., a publicly

traded business services firm (NYSE: CBZ). CBIZ Valuation Group is one of the largest 

business valuation and consulting firms in the United States with offices in Dallas,

Chicago, Atlanta, Milwaukee, St. Louis and Princeton (New Jersey). CBIZ Valuation

Group employs approximately 100 individuals providing business valuation services to

public and private companies.

App. 6

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 6 of 128
Expert Report and Declaration on Market Efficiency

by Scott D. Hakala, Ph.D., CFA

2

2. I received a Doctor of Philosophy degree in Economics and a Bachelor’s degree

in Economics from the University of Minnesota. I have earned the professional

designation of Chartered Financial Analyst, awarded by the Association for Investment

Management and Research. I have taught courses on asset pricing and market efficiency

at the doctorate (Ph.D.) level in a Ph.D. granting institution. In addition, I have served as 

a consultant and expert witness on numerous occasions regarding economic issues similar 

to those in this litigation. Examples of cases where my testimony regarding market 

efficiency was considered by courts at the class certification stage include In re

Broadcom Securities Litigation (Central District of California; October 2003) and In re

Xcelera.com Securities Litigation (District of Massachusetts, opinion September 2004; 

US First Circuit Court of Appeals, opinion December 13, 2005). A detailed summary of 

my qualifications, including prior testimony and articles, is provided on the curriculum

vitae attached hereto as Exhibit A. 

3. Plaintiffs are being charged fees for my services in this engagement based on my

hourly billing rate of $525 per hour. I have received assistance from other staff employed 

by CBIZ Valuation Group.

II. Information Considered

4. My opinions are based on my professional experience, as well as a thorough

review of a substantial amount of available materials, including:

(a) The Consolidated Amended Class Action Complaint for Violations of Federal

Securities Laws (“Complaint”) in this case;

App. 7

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 7 of 128
Expert Report and Declaration on Market Efficiency

by Scott D. Hakala, Ph.D., CFA

3

(b) Memorandum opinion and order, regarding the Court’s Order on the Motions to

Dismiss dated September 26, 2006; 

(c) Securities filings of Zix Corporation. (“Zix” or the Company) with the Securities 

and Exchange Commission (SEC) from February 2003 through October 2005;

(d) Published news articles and press releases and other public news regarding Zix

from October 30, 2002, through May 4, 2005, as found on Factiva, LexisNexis 

and Bloomberg, L.P. databases; 

(e) Analysts’ reports as identified or provided in the period from January 10, 2004,

through March 15, 2005, as provided by Thomson Research;

(f) Institutional trade data from September 30, 2002, through March 31, 2005, 

provided by Thomson Analytical Research;

(g) Publicly available financial information and public trading price information on

Zix, market indices and similar public companies as found on Bloomberg L.P.;

and

(h) Various academic texts and published articles as cited in the text. 

III. Summary of the Analyses and Conclusions

5. After reviewing the information listed in paragraph 4, I find that the market for

Zix’s common shares was efficient in that the market rapidly reacted to and reflected all

public information in the share price during the Class Period.1 I performed a detailed,

 

1

 While there are a variety of academic and legal references one might refer to providing definitions

consistent with the definition provided, a good summary of the practical concept of market efficiency

consistent with my understanding is set forth in Damodaran, Investment Valuation: Tools and Techniques

for Determining the Value of Any Asset, Second Edition, 2002, pp. 112-116. A summary of the issue of

market efficiency may be found in two decisions by the United States Court of Appeals for the First Circuit 

App. 8

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 8 of 128
Expert Report and Declaration on Market Efficiency

by Scott D. Hakala, Ph.D., CFA

4

integrated event study that found that most of the movements in the stock price of Zix

over time are explained by a combination of company-specific, industry-specific and

market factors (or events). The event study found that there were demonstrable dates

when statements by the Defendants cited in the Complaint affected the market price of

Zix and/or facilitated the inflation in Zix’s share price. Additionally, the event study

found that various partially corrective events were significant in explaining the decline in 

Zix’s share price during and in the days immediately following the proposed Class

Period. Thus, it is possible to develop a consistent model of damages that may be used to 

estimate damages on a per share basis and to allocate damages across purchasers filing

proofs of claim.

6. In assessing the type of market efficiency required for the fraud-on-the-market 

presumption to apply, I relied on, among other things, Cammer v. Bloom, 711 F. Supp.

1264 (D.N.J. 1989). Consistent with the framework outlined in that case, I found strong

evidence for the level of market efficiency required for class certification.

(a) As shown in Exhibit C, there was more than adequate trading volume to attract

substantial investor interest and to ensure market efficiency. The trading

 

on December 13, 2005, In re PolyMedica Corp. Securities Litigation (Civil Action No. 00-12426-REK; 

432 F.3d 1-19) and In re Xcelera.com Securities Litigation (Civil Action No. 00-11649-RWZ; 430 F.3d

503-518). In the Xcelera opinion, at 430 F.3d 510, the Court stated, “As we stated in PolyMedica, "while 

fundamental value efficiency may be the more comprehensive of the two concepts, encompassing both

speed and accuracy, efficiency is not an all-or-nothing phenomenon." Id. (emphasis in original) (internal

quotation marks and citation omitted). We explained that "for purposes of establishing the presumption of

reliance, therefore, investors need only show that the market was informationally efficient," not

fundamental value efficient. Id.; see also id. (stating that "the fraud-on-the-market theory does not require

'proof that the market correctly reflects some 'fundamental value' of the security. To apply the fraud-on-themarket theory, it is sufficient that the market for a security be 'efficient' only in the sense that market prices 

reflect the available information about the security'") (quoting [**18] In re Verifone Sec. Litig., 784 F.

Supp. 1471, 1479 n.7).” Also, see, for example, Cammer, 711 F. Supp. at 1281 (stating that an efficient 

market is one in which "current price reflects all available information," and citing economic commentator 

Eugene Fama's definition of market efficiency as "[a] market in which prices always 'fully reflect' available 

information.” Additionally, I reviewed the recent decision in In re IPO Securities Litigation issued by the 

U.S. Second Circuit Court of Appeals. 

App. 9

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 9 of 128
Expert Report and Declaration on Market Efficiency

by Scott D. Hakala, Ph.D., CFA

5

fundamentals and reasonably high turnover of the public float led to an open,

active and developed market for Zix’s common shares during the proposed Class

Period from October 30, 2003, through May 4, 2004 (the “Class Period”). 

(b) The public float of Zix was well beyond the level required to attract and

maintain investor interest. Furthermore, Zix’s outstanding shares were held by

institutional investors throughout the Class Period as shown in Exhibit D. The

number of identified institutions that were net purchasers of shares in quarters

between September 30, 2003 and September 30, 2004, was 57.

(c) The fact that Zix’s shares are actively traded on the NASDAQ National Market

and in good standing is, by itself, usually sufficient to conclude that the market for 

its shares is reasonably efficient. 

(d) Zix’s securities filings were timely until March 2005. Zix was eligible to file

and did file Form S-3/A on November 3, 2003 and February 12, 2004 during the

proposed Class Period. Zix also issued regular press releases and information

regarding its earnings, guidance and commercial developments throughout the

Class Period. 

(e) There is a “cause and effect relationship” between unexpected corporate events

and financial releases and movements in the security price. This can be seen in

the event study summarized in Exhibit B. The events relating to the allegations 

identified in the Complaint were identified with substantial increases in trading

volume (as shown in Exhibit C) and significant event effects as shown in Exhibit

D, especially for the events of February 4, 2004 and May 4, 5 and 6, 2004. This 

strongly indicates that the relevant information was highly material to investors

App. 10

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 10 of 128
Expert Report and Declaration on Market Efficiency

by Scott D. Hakala, Ph.D., CFA

6

and prompted an immediate reaction when disclosed during and at the end of the 

Class Period. 

(f) The preliminary event study analysis summarized in Exhibit B found that certain 

statements and assurances by the Company and defendants were material to

investors. A consistent method for allocating economic losses and damages to

class members that purchased shares from October 30, 2003, through May 4,

2004, can be constructed from the analyses summarized in Exhibits B and C. 

7. The total number of outstanding shares ranged from approximately 28 million on

September 30, 2003,2 to over 41 million shares on October 30, 2005.3 Of the shares

outstanding, the outstanding shares not held by officers or directors were consistently in

excess of 26 million.4 Shares held by non-affiliates had a trading value of $362,587,156

as of February 20, 2004.5 The trading value of shares held by non-affiliates (the public 

float) was consistently in excess of $190 million through the Class Period. From my

experience advising clients, as a general rule, a public float of at least 2 million shares

with a total market value of the float in excess of $20 million is considered sufficient to

attract adequate market maker and institutional interest and a market value of the float in

excess of $50 million will attract full interest on the part of brokerage firms and market

makers. 

8. Zix shares were actively traded. The average daily trading volume during the

Class Period was 684,140 shares, which represents a daily turnover rate of 2.55% and a

 

2

 Form 10-Q filed by Zix on September 30, 2003. 

3

 Zix’s quarterly report Form 10-Q for the quarter ended September 30, 2005, shares outstanding as of

October 28, 2005.

4

 Definitive Proxy Statement filed by Zix on February 20, 2003, shares outstanding less insider shares as 

of February 20, 2003. 

5

 Zix’s proxy statements as of February 20, 2004. Shares outstanding of 30,716,748 minus insiders shares 

of 651,478 multiplied by the reported closing stock price of $12.06 as of February 20, 2004. 

App. 11

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 11 of 128
Expert Report and Declaration on Market Efficiency

by Scott D. Hakala, Ph.D., CFA

7

weekly turnover rate of approximately 12.39%.6 This rate of turnover is significant and

indicative of an actively traded security. Additionally, the trade volume increased

substantially on the days of or immediately following major material news events such as 

the February 4, 2004, when Zix Corporation announced financial results for the fourth

quarter ended December 31, 2003 (trading volume of 2,139,105 shares), the March 18, 

2004, announcement regarding Gary R Craft at Soleil Securities downgrade on Zix Corp. 

to ``sell'' from ``hold'' (trading volume of 1,014,316 shares) and the reaction of investors

following the disclosures at the end of the Class Period on May 5, 2004 (trading volume 

of 2,438,820 shares). There was a demonstrated ability to short the stock during the

Class Period and the short interest changed from month-to-month over time. 

9. Institutional ownership of Zix ranged from 2,409,339 shares held by a total of 46 

identified institutions on September 30, 2003, to 7,796,363 shares held by 64 identified

institutions on September 30, 2004.

7

 Institutions actively traded the shares of Zix (as

indicated by the turnover of holdings from quarter to quarter from September 30, 2003, 

through September 30, 2004). Since institutional investors tend to be viewed as more

active in monitoring their investments and more sophisticated, such significant

institutional shareholdings leads to a strong inference of market efficiency. 

10. Zix was generally covered by the financial and general media. Zix was actively

covered by Edward Ching, analyst, at Rodman & Renshaw and had coverage later by

 

6 The relevant data is provided in Exhibits C and D. Calculated based on weighted average shares

outstanding in the third quarter of 2003 of approximately 22 million, average shares outstanding in the 

fourth quarter of 2003 of approximately 23.5 million, average shares outstanding in the first quarter of 2004

of approximately 30.2 million and average shares outstanding in the second quarter of 2004 of

approximately 31.6 million. Daily turnover was converted into weekly turnover based on 4.86 trade days

per week on average based on actual trade days reported between September 30, 2003, and September 29, 

2004. 

7

 See Exhibit D.

App. 12

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 12 of 128
Expert Report and Declaration on Market Efficiency

by Scott D. Hakala, Ph.D., CFA

8

Soleil Securities. Mr. Ching provided regular coverage on Zix and commented on its

quarterly financial results on a consistent basis throughout the Class Period. 

11. In order to assess the reaction of Zix’s share price to relevant news events, I

performed an event study. An event study is based on a market model. A market model is 

a model of how the price of a security (in this case, the price of Zix’s publicly traded

securities) moves in relation to a market index and/or an index of peer group companies

and responds to news and information. 

12. An event study is composed of three stages. The first stage of my event study

was the identification of material events. The intent of this step of the event study

analysis was to control for all days when potentially material information came into the

market.8 The available public information was reviewed to determine information that

investors would find to be material to Zix’s shareholders on a qualitative basis.9 This 

information included analysts’ reports, press releases, securities filings,10 news articles 

(newspapers and daily publications, as well as more general publications) and Internet

bulletin board postings.11 

 

8

 As long as there are sufficient degrees of freedom, the addition of more events (over-identification of

events) will ensure a set of “clean” observations in the control sample of “non-event days” and avoid

contaminating the market model estimates. Thus, adding “too many” events ensures the relative absence of 

bias and ensures consistency of the estimates but at some slight loss of efficiency. See, for example,

Intriligator, Econometric Models, Techniques, and Applications, 1978, pp. 188-189, and Pindyck and

Rubinfeld, Econometric Models and Economic Forecasts, 1991, p. 162-166.

9

 The list of material items relied upon is based on the NASDAQ guidelines as recognized by the SEC in

Federal Register, Vol. 67, No. 157, August 7, 2002, pp. 51306-51310. I then added third party news

reports, analysts’ reports and insider trading events to that list consistent with the academic studies. The

dates identified as having potentially material news events and, therefore, associated with indicator

variables are listed in Exhibit D. 

10 Most securities filings, including Form 10-Ks and 10-Qs and 8-Ks, are routine and/or duplicate

previously disclosed news. Thus, only when a news article or analyst mentions something surprising or new 

in such filings are they customarily identified as possible events for the purposes of this study. 

11 In this case, the analysis was preliminary and did not consider Internet bulletin board information and

information that might be obtained in discovery and reviewing discovery. 

App. 13

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 13 of 128
Expert Report and Declaration on Market Efficiency

by Scott D. Hakala, Ph.D., CFA

9

13. The second stage of the event study involved the identification and analysis of

possible market indices and guideline or peer group companies relative to the returns of

Zix’s shares. As a preliminary matter, I considered one index which was reasonably

likely to explain market and industry elements of the movements in Zix’s share price. 

This index was the Standard and Poor’s SmallCap Information Technology Index (S6

INFT).

12 As seen in Exhibit B, this index was significant in explaining the movements in 

Zix’s share price overall and especially significant after controlling for potentially

material events. The index explained 11.17% of the overall variance during the event

study period (October 30, 2002, to May 4, 2005), and was able to explain a total of 9.47% 

of the variance on days when no identified events were considered. This is consistent

with and strong evidence of an efficient market, in that it indicated that the share price of 

the Company moved consistently and significantly with market and general industry

news events throughout the study period. 

14. The third stage of the analysis involved analyzing the candidate events (identified 

in stage one) in an integrated event study regression. I used the integrated regression or

event parameter approach.13 This approach was selected because the older “two-pass”

 

12 I also considered but found to be incrementally insignificant the NASDAQ Composite Index (CCMP),

the NASDAQ Computer Index (IXK) and the Russell 3000 Technology Index (R3TECH) and additional

guideline companies: Authentidate Holding Corp. (ADAT), Critical Path, Inc. (CPTH), Entrust, Inc.

(ENTU), Allscripts Healthcare Solutions, Inc. (MDRX), NDCHEalth Corporation (NDC), Secure

Computing Corporation (SCUR), Symantec Corporation (SYMC), Tumbleweed Communications

Corporation (TMWD), Verisign, Inc. (VRSN) and McAfee Inc. (MFE).

13 In creating a precise, reliable market model required for an event study, one should account for the

effects of all significant company-specific news events during the study period, even news unrelated to the 

subject of interest. This is done using dummy or indicator variables integrated into the market model 

regression to capture and control for the effects of company-specific events. In a chapter of the textbook

Market Models: A Guide to Financial Data Analysis, 2001, Alexander explains (p. 441), “Dummy

variables should be viewed as necessary measures for data that have structural breaks, regime shifts or

seasonalities. If dummies are omitted there will be residual problems that lead to inefficient parameter

estimates on the real explanatory variables.” In other words, if there are significant news events that caused 

the stock price of Zix to move on specific days (both related and unrelated to the allegations in this case), it 

is necessary that one capture the effects of such news events with dummy variables on the appropriate dates 

App. 14

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 14 of 128
Expert Report and Declaration on Market Efficiency

by Scott D. Hakala, Ph.D., CFA

10

cumulative abnormal returns (CAR) approach to event studies can often be a biased and

inconsistent approach to analyzing events.14 The integrated regression approach yields

 

in order to have a reliable analysis. Alexander specifically states (p. 440), “...[O]ne might consider creating 

a dummy variable to model the timing of important news announcements,...Structural break dummy

variables are important whenever the data covers a permanent shift arising from a change in regime, or a

temporary shift due to an extreme market movement. Dummy variables should be used prudently and only 

if there is a real reason, such as an important news announcement....” Consistent with this, I only included

dummy variables in my event study for news events specifically related to Zix (that were identified a priori 

without reference to the actual price movements of Zix’s shares) that were, in the context of this study,

deemed important (material).

Many academic articles discuss the use of dummy/indicator variables to capture the effects of events

including: Larcker, Gordon and Pinchea, “Testing for Market Efficiency: A Comparison of the Cumulative 

Average Residual Methodology and Intervention Analysis,” Journal of Financial and Quantitative 

Analysis, June 1980, pp. 267-287; Box and Tiao, “Intervention Analysis with Applications to Economic

and Environmental Problems,” Journal of the American Statistical Association, March 1975, pp. 70-79; 

Binder, “Measuring the Effects of Regulation with Stock Price Data,” The RAND Journal of Economics, 

Summer 1985, pp. 167-183; Karafiath, “Using Dummy Variables in the Event Methodology,” The 

Financial Review, August 1988, pp. 351-358; Malatesta, “Measuring Abnormal Performance: The Event

Parameter Approach Using Joint Generalized Least Squares,” Journal of Financial and Quantitative

Analysis, March 1986, pp. 27-38; Marais and Schipper, “Chapter 17A: Event Study Methods: Detecting

and Measuring the Security Price Effects of Disclosures and Interventions,” Litigation Services Handbook: 

The Role of the Financial Expert, Third Edition, 2005 Cumulative Supplement, pp. 17A-15 to 16, 18 and

22 to 23 (discusses the ‘event parameter” method, the use of the method to accommodate multiple events

and in managing more complex modeling issues); and Dufour, “Dummy Variables and Predictive Tests for 

Structural Change,” Economics Letters, 6, 1980, pp. 241-247. (Marais has served as a consultant and coexpert in two securities cases in the past year in both testing and validating my methodology.) Examples in 

textbooks discussing using dummy indicator variables to capture events in time include: Pindyck &

Rubinfeld, Econometric Models & Economic Forecasts, 1991, pp. 104-108; Spanos, Statistical 

Foundations of Econometric Modeling, 1986, pp. 536-539 (and as part of a continuing example of

modeling money holding behavior in a dynamic, time-series regression); Enders, Applied Econometric

Time Series, 1995, pp. 243-249 (discusses structural change in unit root time-series and uses dummy

variables to test for and adjust for structural change or level shifts in such series); Intriligator, Econometric 

Models, Techniques, and Applications, 1978, pp. 58-61, and Campbell, Lo and Mackinlay, The 

Econometrics of Financial Markets, 1997, p. 167. 

14 The traditional CAR analysis fails to control for company-specific news and, thus, provides a

misspecified test in that it consistently fails to control for the factor it seeks to test and, thus, improperly

formulates the hypothesis test, especially in a single company event study analysis. 

There is substantial general and specific literature in the statistics, economics and finance fields

discussing the problems that can arise in the traditional two-pass CAR methodology. See, for example,

Larcker, Gordon and Pinchea, “Testing for Market Efficiency: A Comparison of the Cumulative Average

Residual Methodology and Intervention Analysis,” Journal of Financial and Quantitative Analysis, June

1980, pp. 267-287. The authors in this paper state (p. 267), “The objective of this paper is to suggest that

the traditional CAR methodology is often inappropriate and that intervention analysis [italics in original] is 

a possible alternative. Where the systematic risk (i.e. Beta) of a firm change as the result (or in anticipation) 

of an announcement, the cumulative average residual methodology will result in biased residuals.

...Intervention analysis, on the other hand, can separate such risk changes from the information content of

the announcement. In addition, intervention analysis also allows the observed auto-correlation in the market 

model residuals to be removed, thus providing improved beta estimates required for reliable statistical

testing.” Franses in Time Series Models for Business and Economic Forecasting, 1998, recommends

“intervention” analysis (p. 130) consistent with Box and Tiao (1975) and points out the statistical problems 

that arise when one does not capture the effects of known events (with dummy variables) or “neglects

them” (pp. 128-129). He states (p. 144), “With a priori knowledge of specific events and approximate dates 

App. 15

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 15 of 128
Expert Report and Declaration on Market Efficiency

by Scott D. Hakala, Ph.D., CFA

11

consistent and unbiased estimates of both the market model and the effects of events over 

the period of interest.15 After identifying all candidate events, the measured effect of each 

candidate event is analyzed in the context of daily returns. 

15. The measured effect of each potentially material event is provided in Exhibit B

along with a measure of its statistical significance. Jointly, although the events (173 in

total) accounted for only a fraction of the total trade days considered in the analysis (632

observations), they explained a significant proportion of the remaining unexplained

variance in Zix’s share price throughout the study period.16 An F-test is a conservative

test for the statistical significance of a group of events or explanatory variables. The Ftest for significance of the identified events suggested a confidence level in excess of

 

which may yield aberrant observations (...), it is not difficult to examine their relevance for a model that

will be used for forecasting. We can simply extend our model with additional regressors, such as the

dummy variables.... Standard tests for significance can then be used to decide which regressors are

potentially important for forecasting.” 

The bias and inconsistency problems associated with the two-pass or CAR event analyses are particularly 

significant in single company event studies. First, the “clean period” required to obtain estimates of the

standard errors and the coefficients of the market model in the CAR methodology is almost never really

clean in a statistical sense. Clean in a statistical sense implies few or no significant company-specific events 

and a properly specified market model. Because company-specific events are common in stock price return 

data, the residuals during the candidate “clean period” are usually not normally distributed (fat tails or

kurtosis is common) and the estimated market model is biased and inconsistent due to an omitted variables 

problem. These problems lead to overstated standard errors and understated t-statistics during the event

analysis stage of the two-pass methodology. Additionally, fundamental changes in the businesses of a

company and its peer companies over time can render the market model coefficients in the “clean period”

inapplicable to or biased relevant to the estimation period. (See, for example, Marais and Schipper,

“Chapter 17A: Event Study Methods: Detecting and Measuring the Security Price Effects of Disclosures

and Interventions,” Litigation Services Handbook: The Role of the Financial Expert, Third Edition, 2005

Cumulative Supplement, pp. 17A-16 to 21, wherein they discuss the problem of low “power” in single

company event studies and the problem of “interventions” in the estimation period yielding “unstable

results”.) Second, the market model in the two-pass CAR methodology is often estimated using a daily

returns series. The low percentage of variance explained by the market model (low R-squared of 15% or

less) leads to an unfavorable (low) signal to noise ratio and will tend to cause the market model coefficients

to be understated or inaccurate even if the omitted variables (omitted company-specific events) did not

cause them to be biased. For this reason, beta estimates are preferably made using longer return windows

until the R-squared improves or the estimation of the market model must be made in a regression with the 

company-specific events included as indicator or dummy variables. See Franses in Time Series Models for

Business and Economic Forecasting, 1998, pp. 128-129.

15 See the references and discussions in the two prior footnotes.

16 The identified events were able to increase in the R-squared from 11.2% to 52.2%. 

App. 16

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 16 of 128
Expert Report and Declaration on Market Efficiency

by Scott D. Hakala, Ph.D., CFA

12

99.99% for the identified events.

17

 Finally, the F-test for the identified corrective events

of February 4, March 18 and May 4, 5 and 6, 2004 was extremely significant at the

99.99% confidence level.18 Thus, the share price of Zix reacted more and was

significantly more likely to change in relative terms on identified event days, than on

non-event days. 

16. The events which were viewed a priori as likely to be the most significant are

shown in bold in Exhibit B. Not surprising, those events proved to be extremely

significant. The reaction to specific disclosures of earnings that were likely to

significantly change expectations on February 4, 2004, was significant. Investors 

similarly reacted significantly to an analyst downgrade substantially and in an extremely 

significant manner to the primary corrective disclosures at the end of the Class Period on 

May 4, 5 and 6, 2004. Furthermore, the reactions to new material news tended to be

swift and fully absorbed within one full day of trading in the absence of additional news

and commentary. There was no meaningful first-order or second-order correlation of

abnormal returns on non-event days.19 This strongly indicates an efficient market.

17. The event study, while reasonably complete and thorough, is preliminary and

without the benefit of discovery and additional information which might be considered

for purposes of estimating inflation per share and damages.20 I, therefore, may amend

and supplement my conclusions based on subsequent analyses. 

 

17 F(180,448)= 2.13559 with Significance Level 0.00000000.

18 F(5,448)= 15.69915 with Significance Level 0.00000000.

19 There is a very weak first-order correlation which is not economically exploitable and not statistically

significant (t=0.70). This slightly correlation disappears (consistent with economic theory) when the

second order serial correlation (t=-0.17) is tested. 

20 I may, for example, consider bulletin board postings and other evidence of events. Such additional

information will not significant change or alter the analysis other than improving the goodness-of-it. 

App. 17

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 17 of 128
Expert Report and Declaration on Market Efficiency

by Scott D. Hakala, Ph.D., CFA

13

I declare under penalty of perjury under the laws of the State of Texas and the United

States that the foregoing is true and correct. If called as a witness I could and would

competently testify thereto. 

 Executed this 1

st day of April 2007 at Dallas, Texas.

Scott D. Hakala, Ph.D., CFA

App. 18

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 18 of 128
EXHIBIT A

App. 19

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 19 of 128
Scott D. Hakala, Ph.D., CFA Page 1

Exhibit A

Scott D. Hakala, Ph.D., CFA

Employment History

• 1992 – Jan 1998, March 1998 to Present CBIZ Valuation Group, Inc. (formerly Business

Valuation Services), Dallas, Texas

Director/Principal. As a financial economist and financial analyst, Dr. Hakala brings to the firm extensive 

practical knowledge of finance, economics and statistics. His expertise includes: corporate finance,

restructuring and cost of capital; the valuation of securities and business interests (transactions,

mergers, acquisitions, fairness opinions); the valuation of intangible assets (patents, trademarks);

analysis of publicly traded securities (insider trading studies, trading analyses, event analyses,

materiality, damages in securities litigation); economic loss analyses (commercial litigation); wage and

compensation determination (reasonable compensation studies, lost personal income, wrongful

termination); transfer pricing; derivative securities (options pricing and valuation); and antitrust and

industry structure, strategic pricing, marketing and cost allocation analyses.

• Jan 1998 – March 1998 Laser BioTherapy, Inc., Dallas, Texas

Interim President. Dr. Hakala served as the Chief Executive Officer of Laser BioTherapy, Inc. His

decision-making authority involving issues of marketing, employment, negotiating with investors, pricing, 

product planning, financial planning and all other corporate decisions. 

• 1988 - 1992 Dept. of Economics, Southern Methodist University, Dallas, Texas

Assistant Professor. Dr. Hakala taught graduate and undergraduate courses in macroeconomics,

monetary/financial economics, financial institution regulation and international financial management. 

He supervised dissertations on international money, commodity options and forward markets, and

foreign exchange rates. His research interests included monetary policy, the causes of fluctuations in

employment and output, capital stock estimation, aggregate production theory, foreign currency

movements (futures, options and forward contracts), inflation, interest rate movements and the term

structure of interest rates, asset pricing and consumption.

• 1983 - 1988 Dept. of Economics, University of Minnesota, Minneapolis, Minnesota

Lecturer. Dr. Hakala designed course materials and taught large classes in macroeconomics and

international economics. He served on hiring committees and evaluated other instructors.

Formal Education

• Doctor of Philosophy, Economics - 1989

University of Minnesota, Minneapolis, Minnesota

Graduate School Fellowship

(Graduate/dissertation advisor Edward Prescott was awarded the Nobel Prize in Economics in 2004.)

• Bachelor of Arts, Economics - 1983

Minor in Business Administration and Pre-Law Emphasis

University of Minnesota, Duluth, Minnesota

Graduated Summa Cum Laude

Whiteside Scholarship, full tuition and expenses

App. 20

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 20 of 128
Scott D. Hakala, Ph.D., CFA Page 2

Honors and Awards

• Distinguished Instructor, Department of Economics, University of Minnesota, 1987-1988

• Earhart Foundation Award, Department of Economics,, University of Minnesota, 1985

• Graduate School Fellowship, 1983 and 1984

• Cecil H. Meyers Outstanding Economics Student Award, 1982

• Perfect Scores on Quantitative Analysis and Verbal Analysis sections of Graduate Record Examination

(GRE), 1982

• Alice Touhy Tweed Award, High School Valedictorian, 1979

• Lee Krough Award (outstanding character), American Legion’s Minnesota Boy’s State, 1978, elected Lt. 

Governor and invited to represent state at other events

• Centrum Award, 1979 (for outstanding character and contributions)

Professional Associations

• CFA Charter, The Institute of Chartered Financial Analysts, completed all tests and requirements for a

CFA designation

• Member, American Economic Association

• Member, American Finance Association

Publications

• Thorsen, Kaplan and Hakala, “Rediscovering the Economics of Loss Causation,” Journal of Business

and Security Law Acceptance, Vol. 6, No. 1 and 2, April 2006, pp. 93-125.

• “Estimating and Applying Economic Value Added,” Chapter 13E - Financial Valuation: Businesses and

Business Interests - 1998 Update. Publisher: Warren, Gorham & Lamont

• “Valuation for Smaller Capitalization Companies” (with Dr. Mukesh Bajaj), Chapter 12A - Financial 

Valuation: Businesses and Business Interests - 1998 Update. Publisher: Warren, Gorham & Lamont.

• “Analysis and Valuation of Distressed Equity Securities” (with Mr. M. Travis Keath), Chapter 13F -

Financial Valuation: Businesses and Business Interests - 1999 Update. Publisher: Warren, Gorham & 

Lamont.

• “Analysis and Valuation of Distressed Equity Securities” (with Mr. M. Travis Keath), Valuation Strategies, 

September/October 1999, pp. 24-34. Publisher: Warren, Gorham & Lamont.

• Contributing author in The Art of M&A Integration: A Guide to Merging Resources, Processes and

Responsibilities. October 1997. Publisher: McGraw-Hill. Contributed on valuation of tangible and

intangible assets (patents, trade secrets, customers, goodwill, employment agreements, non-competes, 

etc.), allocation of purchase price issues, accounting treatment of acquisitions, international valuation 

and transfer pricing and general valuation and due diligence issues. Assisted editor in commenting on

and editing first half of text. 

App. 21

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 21 of 128
Scott D. Hakala, Ph.D., CFA Page 3

• Provided live and taped interviews pertaining to economic issues for television, including lengthy

interviews for CNN (July 1990), WFAA-TV (July 1990; July 1991; March 1992), and radio (Internet radio 

on November 9, 1999, discussing Microsoft anti-trust issues).

Lectures Presented

Dr. Hakala is a frequent public speaker on valuation, economics, ethics, and monetary policy. Examples include:

• PLUS D&O Symposium – New York-Panel Discussion-Written presentation entitled “Current Economic

Issues in Securities Litigation” and Panel Discussion - February 2, 2006

• “Valuation of Options for Litigation Purposes” – New York University CLE Presentation-October 2000

• “Valuation Issues-Family Limited Partnerships” – Professional Financial Service, LP’s Family Limited

Partnership Alert and Update; Dallas/Fort Worth - February 2000

• “PPOs for Sale: the Valuation of Managed Care Entities” - Caesars Palace; Las Vegas, Nevada -

September 1992

• “Equilibria in Continuous-Time Models of Money” - refereed paper presented to the Sixth World

Congress of the Econometric Society; Barcelona, Spain - August 1990

• “The Use and Holding of Currency” - Feature Presentation - Western Economic Association Meeting;

San Diego, California - July 1990

• “Values and Economics” - Dallas Philosophical Forum; Dallas, Texas - March 1990

• “Ethics and the Role of Government” - ARCO Oil and Gas Research Center; Plano, Texas - October

1989

• “Continuous-Time Models of Money: Policy Implications” - paper presented to the Division of Research 

and Statistics of the Board of Governors of the Federal Reserve; Washington, DC - January 1988

Expert Witness/Litigation Support

Dr. Hakala has undertaken various assignments involving litigation support and has testified as an expert

witness. He has been qualified as an expert and has testified in both U.S. District Court and in U.S. Tax Court. 

The following is a list of testimony on record:

• In re JDS Uniphase Corporation Securities Litigation (Master File No. C-02-1486 CW (EDL)); In the

United States District Court For the Northern District of California, Oakland Division; deposition

testimony March 12 and 13, 2007; testimony regarding materiality, loss causation, and damages in a

class action securities case.

• In re Enron Corporation Securities, Derivative and “ERISA” Litigation; LAMKIN et al. vs. UBS PAINE 

WEBBER, INC., and UBS WARBURG LLC, and, GIANCARLO vs. UBS FINANCIAL SERVICES, INC., 

UBS SECURITIES, L.L.C., and UBS AG (MDL Docket No. 1446; Civil Action Nos. H-02-CV-0851 & H03-4359, respectively); In the United States District Court For the Southern District of Texas, Houston

Division; deposition testimony October 26, 2006; testimony regarding materiality, loss causation,

solvency and damages in two class action securities cases involving customers and counter-parties of

the defendants and Enron employees awarded stock options.

• F. L. Motheral Company d/b/a Motheral Printing Company vs. MLP, U.S.A., Incorporated, Mitsubishi &

Company, (U.S.A.), Incorporated; American Arbitration Association, Fort Worth, Texas (Arbitration No.

App. 22

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 22 of 128
Scott D. Hakala, Ph.D., CFA Page 4

71 181 Y 00094 05); deposition testimony August 25 and September 20, 2006; testified regarding

economic losses relating to allegedly defective printing equipment. 

• In re Rhythms Securities Litigation; (Case No. 02-K-35); In the United States District Court For the

District of Colorado; deposition testimony July 21, 2006; testimony regarding materiality, loss causation, 

inflation per share and damages in a class action securities case.

• Rose Johnson, Individually and as Personal Representative of the Estate of Jay Johnson, and Thelma

Johnson, Jason Johnson and Kindra Johnson, Individually v. Journeyman Construction, L.P.; Austex

Concrete Construction, et al.; (Cause No. GN-303431) 126th Judicial District, Travis County, Texas;

deposition testimony July 11, 2006; testified as to the lost income associated with the death of Jay

Johnson. 

• In re Enron Corporation Securities Litigation; Mark Newby, et al., vs. Enron Corp., et al. (MDL Docket

No. 1446; Civil Action No. H-01-3624); In the United States District Court For the Southern District of

Texas, Houston Division; deposition testimony May 8 and 9, 2006; testimony regarding materiality, loss 

causation, solvency and damages in a class action securities case in rebuttal to a number of expert

reports for defendants.

• Thomas J. O’Neil, et al. (Plaintiffs) v. Texas American Communications Network, Inc., et al.

(Defendants); (Cause No. 67-210728-05) 17th Judicial District, Tarrant County, Texas; trial testimony

May 3, 2006; testified as to the fair value of a small Internet service provider in a case involving breach

of fiduciary duty, wrongful termination and destruction of business. 

• Jeffrey H. Winokur, Individually and on Behalf of all Other Similarly Situated, vs. Direct General

Corporation, et al. (Civil Action No. 3:05-0077); In the United States District Court, Middle District of

Tennessee; deposition testimony April 7, 2006; testimony regarding materiality, loss causation and

damages in a class action securities case.

• WRS Group, Ltd. And SJS Partnership v. United States (Civil Action WA:05-CV-166); In the United

States District Court, Western District of Texas, Waco Division; deposition testimony April 4, 2006; 

testified in rebuttal to and regarding the valuation of equity interests of a medical education company

and relating allocation issues in an income tax dispute.

• Jules Adrian Carmack vs. John Dee Carmack II, Kevin Wayne Cloud and Id Software, Inc.; 134th 

Judicial District, Dallas County, Texas; deposition testimony March 31, 2006; testified as to valuation of 

a computer game design company and related issues in a shareholder dispute regarding a buy-sell 

agreement, allegations of oppression and issues of fair value.

• In re Williams Sec. Litig. (Case No. 02-CV-75-H(M)); In the United States District Court, Northeastern

District of Oklahoma; deposition testimony March 22, 2006; testimony regarding materiality, loss

causation and damages in a class action securities case.

• James Kelsoe, et al., v. Texas United Excavators, L.L.C. and Leslie Lynn Cox ; (Cause No. 67-209655-

05) Judicial District, Tarrant County, Texas; deposition March 9, 2006; testified as to lost household

income and other support in a wrongful death case. 

• In re Cigna Corporation Sec. Lit. (Master File No. 2:02CV8088); In the United States District Court,

Eastern District of Pennsylvania; deposition testimony March 7, 2006; testified as to issues of loss

causation and damages.

• Windscape Holdings, Ltd. And Live Oak Holdings, Ltd. v. Wes Lochridge & Associates General

Contractors, Inc. (Cause No. 04-8259); 101st Judicial District, Dallas County, Texas; deposition February 

27, 2006; testified in rebuttal to and regarding claims of lost rental income in apartments as result of

alleged paint peeling. 

App. 23

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 23 of 128
Scott D. Hakala, Ph.D., CFA Page 5

• Joseph D. Martinec, Chapter 11 Trustee of WSNET Holdings, Inc. v. Ceberus Capital Management L.P., 

et al.; 200th Judicial District, Travis County, Texas; deposition testimony December 15, 2005; testified as 

to valuation of a digital cable/satellite television provider.

• Vitamin Village, Inc. v. Commissioner of Internal Revenue (Docket No. 8745-02) and Universal 

Marketing, Inc. v. Commissioner of Internal Revenue (Docket No. 8744-02); United States Tax Court;

trial testimony December 9, 2005; testified as to issues related to reasonable compensation of two

affiliated companies. 

• Estate of Frederic C. Kohler v. Commissioner of Internal Revenue; (Docket No. 4646-03); United States 

Tax Court; trial testimony December 7, 2005; valuation of minority shares of Kohler Inc.

• In the Matter of the Marriage of Pamela Elaine White and Jeffrey Alan White; 401st Judicial District,

Collin County, Texas; deposition testimony November 8, 2005, trial testimony November 17, 2005;

testified as to personal goodwill and business valuation. 

• In re Calpine Corporation Securities Litigation; In the United States District Court, Northern District of

California (N.D. Cal. Case No. C-02-1200 SBA (WDB)); deposition testimony October 6 and 7, 2005;

testified as to Section 11 damages involving issued debt securities related to allegations of omissions

regarding manipulation of the California energy markets in 2000 and 2001.

• In re Omnicom Group Inc. Securities Litigation; In the United States District Court, Southern District of

New York (Case No. 02 Civ. 4483); deposition testimony September 14, 2005; testified as market

efficiency in relation to a motion for class certification.

• In re: Metris Companies Inc. Securities Litigation; In the United States District Court, District of

Minnesota (Civil Action No. 02-CV-3677 JMR/FLN); deposition testimony August 15, 2005; testified as

to materiality, inflation per share and aggregate damages in a class action securities case involving a

subprime credit card lender. 

• Federal Home Loan Mortgage Corp. v. Commissioner, United States Tax Court (Docket Nos. 3941-99, 

15626-99 and 5829-02); trial testimony June 8 and 9, 2005; testified as to allocation of purchase price,

valuation of intangible assets and favorable financing. 

• David Graben and Frank Strickler v. Western Reserve Life Assurance Company of Ohio; Intersecurities, 

Inc. and Timothy Hutton; State District Court, 271st Judicial District, Wise County, Texas; deposition

testimony March 29, 2005; trial testimony May 18, 2005; testified as to economic losses and prudent

investment management involving the management of investment portfolios for two retired individuals. 

• Wechsler & Co., Inc. v. Commissioner of Internal Revenue, United States Tax Court (Docket No. 9667-

04); trial testimony March 24, 2005; prepared a written report and rebuttal report as testimony in a

matter involving the determination of the reasonable compensation of a Chief Executive Officer of a

broker-dealer specializing in trading convertible debt securities as a dealer and on its own account. 

• Stephen T. Davis, Individually and as Owner of Lone Star Phones v. Dobson Cellular Systems Inc. d/b/a 

CellularOne and Dobson Communications Corporation and Kelly Lane; In the United States District

Court for the Northern District of Texas, Dallas Division (Case No. 3-04-CV-0465 B); deposition

testimony February 25, 2005; testified as to lost income associated with allegations of a breach of

contract and wrongful termination of a dealership agreement. 

• In re: PE Corporation Securities Litigation; In the United States District Court, District of Connecticut

(Master File No. 3:00CV705(CFD))); deposition testimony February 23, 2005; testified as to materiality, 

inflation per share and aggregate damages in a class action securities case involving allegations of

inadequate and misleading disclosures relating to a secondary offering of tracking shares. 

App. 24

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 24 of 128
Scott D. Hakala, Ph.D., CFA Page 6

• Alpine International Corp. v. Texas Health Resources; State District Court, 101st Judicial District, Dallas

County, Texas; deposition testimony February 21, 2005; supplemental deposition October 3, 2005; trial 

testimony November 23, 2005; testified as to lost profits associated with a breach of a non-solicitation 

provision in a contract. 

• Michael Gloster and Victoria Gloster, t/a Gloster Marketing v. Relios, Inc., H. William Pollack, III, and

Carolyn Pollack; In the United States District Court, Eastern District of Pennsylvania (Cause No. 02-CV7140); deposition testimony February 11, 2005; testified as to issues of valuation and profits involving 

claims of trademark and copyright infringement. 

• In re: Clarent Corporation Securities Litigation; In the United States District Court, Northern District of

California, San Francisco Division (Master File No. C-0103361CRB(JCS)); deposition testimony January 

11, 2005; trial testimony January 31 and February 9, 2005; testified as to materiality, inflation per share

and aggregate damages in a class action securities case involving allegations of accounting fraud

against former officers of the company and the accounting firm for its audit. 

• In re: DQE, Inc. Securities Litigation; In the United States District Court, Western District of Pennsylvania 

(Master File No. 01-1851); deposition testimony November 23, 2004; testified as to materiality, inflation

per share and aggregate damages in a class action securities case. 

• In re: Worldcom, Inc. ERISA Securities Litigation; In the United States District Court, Southern District of 

New York (Master File No. 02 Civ. 4816 (DLC)); deposition testimony November 15, 2004; testified as to 

discounts related to block size and information effects associated with the possible sale of shares of

Worldcom and MCI tracking stock in the first half of the 2002. 

• Adele Brody, et al., on behalf of themselves and all others similarly situated, vs. Peter S. Hellman, et al.; 

District Court, City and County of Denver, State of Colorado; deposition testimony September 3, 2004, 

and May 27, 2005; hearing testimony November 30, 2004; testified as to the ability to measure damages 

to a class of shareholders via a plan of allocation. 

• In re: Broadcom Corp. Securities Litigation; In the United States District Court, Central District of

California, Southern Division (No. SACV 01-275 GLT (MLGx)); deposition testimony August 27 and 29, 

September 10, December 1 and 2, 2004, and January 21, 2005; testimony during hearings April 21 and 

May 25, 2005; testified as to materiality, valuation of customer contracts, valuation, inflation per share

and aggregate damages in a securities class action and damages in a related private action. 

• Burt L. Schmidt, Individually and d/b/a Diamond S Trucking vs. Navistar Financial Corporation; State 

District Court, Hamilton County, Texas; deposition testimony July 28, 2004; trial testimony August 30,

2004; testified in rebuttal as to claims of lost profits associated with the repossession of tractor trucks by 

the defendant in 2001. 

• Basic Management Inc, et al., vs. United States of America, et al.; In the United States District Court,

District of Nevada (No. CV-S-02-0884-RCJ-(RJJ)); deposition testimony July 22 and 23, 2004; testified

in rebuttal as to appropriate assumptions and methods (including discount rates and appreciation rates) 

for a real estate development company in Nevada.

• In re. JTS Corporation, Suzanne L. Decker, Trustee, vs. Roger W. Johnson, et al.; In the United States 

Bankruptcy Court, Northern District of California, (No. 98-59752 MM; A.P. No. 00-5423); deposition

testimony July 15, 2004; trial testimony April 11, 2005; testified in rebuttal to trustee’s expert as to

economic losses to creditors and reasonable value associated with certain business decisions. 

• Randy S. Myers, Individually and on Behalf of all others Similarly Situated, vs. Progressive Concepts,

Inc. d/b/a Hawk Electronics; 352nd Judicial District, Tarrant County, Texas (Cause No. 352-201156-03); 

deposition testimony July 2, 2004; testified as to the appropriate measure of damages involving

allegations of improper billing involving cell phone services.

App. 25

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 25 of 128
Scott D. Hakala, Ph.D., CFA Page 7

• OnSite Technology LLC vs. Duratherm, Inc. et al.; In the United States District Court for the Southern

District of Texas (Civil Action No. H-02-2624); trial testimony June 10, 2004; testified as to lost profits

and reasonable royalties as a result of allegations of patent infringement. 

• ATS Telecommunications Systems, Inc. and ATS Liquidating, Inc. f/k/a Advanced Telecommunications 

Systems, Inc., by and through its Plan Agent H. Malcolm Lovett, Jr. vs. Philip R. Lacerte and Four LC

Trust vs. Stan M. Gorman, Sr., and D. Scott Pool; 113th Judicial District, Harris County, Texas (Cause

No. 2001-00997); deposition testimony May 25, 2004; testified as to reasonable and customary terms

and consideration for the provision of performance guarantees, reasonable start-up and operating

expenses, and issues of fraud and breach of fiduciary duty. 

• ISG State Operations, Inc. vs. National Heritage Insurance Company, Inc.; 250th Judicial District, Travis 

County, Texas (Cause No. 95-11014); deposition testimony May 11, 2004; trial testimony April 25, 2005; 

testified as to appropriate measures for calculation lost profits in a breach of contract claim involving

data processing. 

• Xperex Corporation, et al. vs. Viasystems Technologies Corp., LLC; Court of Chancery, New Castle

County, State of Delaware (Civil No. 20582-NC); deposition testimony April 23, 2004; testified as to the

valuation of intangible assets and business related to allegations of fraudulent conveyance and breach

of fiduciary duty to creditors. 

• Richard Marcoux, on behalf of himself and all others similarly situated, v. Billy D. Prim, Andrew J.

Filipowski, et al.; County of Forsyth, State of North Carolina (No. 04 CvS 920); deposition testimony April 

12, 2004; testified as to errors in a fairness opinion issued in a proposed acquisition of a public

company. 

• Houston Saba, L.P. vs. Nick Hernandez and Boyd Page Inc. d/b/a Boyd Page & Associates; 280th

Judicial District, Harris County, Texas (Cause No. 2003-07457); deposition testimony March 31, 2004;

testified as lost profits associated with disruption of a restaurant due to street repairs and construction.

• Autoland of New Jersey, Inc., et al. v. Commissioner of Internal Revenue; U.S. Tax Court (Docket

number 12639-02); testified in trial February 19, 2004; testified as to issues related to the reasonable

compensation of executives in the auto retail business.

• Soils Control International, Inc. vs. Martin Marietta Magnesia Specialties, L.L.C. and Midwest Industrial

Supply, Inc; United States Court, District of Massachusetts (Civil Action No. A-03-CA-531 H); deposition 

testimony January 30, 2004; testified as to lost profits in a dispute relating to allegations of deceptive

trade practices. 

• In re Raytheon Company Securities Litigation; United States Court, District of Massachusetts (Civil

Action No. 99-12142 (PBS)); deposition testimony January 27, 2004; testimony in hearings May 3 and 7, 

2004; testified as to materiality, causation, inflation per share and aggregate damages. 

• In re: AT&T Corp Securities Litigation; United States District Court of New Jersey (MDL No. 1399, Civil 

Action No. 01-1883 (GEB)); Consolidation Class Action on Behalf of the Purchasers of AT&T Wireless

Tracking Stock Shares between April 27 and May 1, 2000; deposition testimony January 16, 2004;

testified as to materiality, causation, inflation per share and aggregate damages. 

• Robert Rodgers vs. Johnson Health Tech. Co., Ltd., Epix, Inc. d/b/a Vision Fitness, et al..; United States 

District Court for the Western District of Texas, Austin Division (Civil Action No. A 02 CA 731 SS); 

deposition testimony January 7, 2004; testified as to reasonable royalties and damages for alleged

patent infringement. 

App. 26

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 26 of 128
Scott D. Hakala, Ph.D., CFA Page 8

• In re. Xcelera.Com Securities Litigation.; United States District Court, District of Massachusetts, Boston, 

Massachusetts (Civil Action No. 00- CV-11649(RWZ)); hearing testimony November 20 and 21, 2003;

testified as to materiality, reliance and market efficiency in a hearing on class certification. 

• C. F. Jordan, L.P. v. Argosy Gaming Company, Laneco Construction Systems, and Louisiana Glass, 

AAA Arbitration (Case Number 71 110 01059 01); deposition testimony November 18, 2003; testified

in rebuttal to allegations of lost income from hotel construction and remediation activities. 

• ELIZABETH M. KURECKA, Individually and as Representative of the estate of Edward Kurecka,

Deceased, MICHAEL KURECKA,TIM KURECKA, and MELANIE KURECKA POWELL v. DAVID H.

AMMONS, M.D., GARY R. GODSIN, M.D., and MICHAEL PETTIBON, M.D.; 342nd Judicial District,

Tarrant County, Texas; deposition testimony September 2003; testified as to the loss of income to the

survivors in a wrongful death case. 

• Betsy Gross v. David Halbert and AdvancePCS; 352nd Judicial District, Tarrant County, Texas (Cause

No. 352-196123-02); deposition testimony August 26, 2003; testified at trial November 10 and 11, 2004; 

testified as to the valuation of executive stock options. 

• Michael Aldridge, Individually and on Behalf of All Other Similarly Situated, vs. A. T. Cross Corporation;

Bradford R. Boss; Russell A. Boss; et al.; United States District Court, District of Rhode Island (C.A. No. 

00-203 (ML)); deposition testimony August 19, 2003; testified as to materiality, causation and damages 

in a securities class action. 

• In Re Broadcom Corp. Securities Litigation; United States District Court, Central District of California,

Southern Division (Master File No. SACV 01-275 GLT (Eex)); deposition testimony July 29 and 30,

2003; testified as to the market efficiency of the trading of Broadcom shares and aggregate damages

calculations relating to class certification. 

• J. Bryan Pickens vs. John T. Pickens, J. Michael Tiner, Michael K. Pickens, C. Robert Milner, Jr.,

Pickens Financial Group, L.L.C., Pickens Resource Corp., and Pickens, Ltd.; 298th Judicial District,

Dallas County, Texas (Cause No. 02-01105); deposition testimony July 11, 2003; testified as to the

overall financial performance of certain companies and the fairness (or benefits to the plaintiff) of certain 

transactions involving the defendant companies and affiliated trusts. 

• In re Arthur Franklin Tyler, Jr., Debtor; Arthur Franklin Tyler, Jr., v. Tywell Manufacturing Corporation;

U.S. Bankruptcy Court, Northern District of Texas, Dallas Division (Case No. 01-80343-SAF-13; 

Adversary No. 02-3530); trial testimony July 1, 2003; testified as to net asset value under various

assumptions in an involuntary shareholder foreclosure/shareholder oppression dispute. 

• FFP Partners, L.P. v. Jack J. Ceccarelli, Restructure Petroleum Marketing Services, Inc. f/k/a E-Z Serve 

Petroleum Marketing Company and Environmental Corporation of America, Inc.; American Arbitration

Association (Case No. 71-Y-198-00167-02); hearing testimony May 19, 2003; testified as to the value of 

gas-only operations related to allegations of breach of contract, breach of fiduciary duty and theft of

business opportunities. 

• RadioShack Corporation, and TE Electronics, L.P. vs. Fried, Frank, Harris, Shriver & Jacobson and

Harvey Pitt; United States District Court, Northern District of Texas, Ft. Worth Division (Civil Action No.

4:02-CV-0639-TV); deposition testimony May 9, 2003; testified as to causation and damages as a result 

of allegations of legal malpractice. 

• Printwrap, Inc. v. Printwrap Sales, Inc. and Maxine Ammon; 134th Judicial District, Dallas County, Texas 

(Cause No. 02-5064-G); deposition testimony May 6, 2003; testified as to the valuation and economic

losses of a purchase of a specialty printing business as a result of allegations of material

misrepresentations on the part of the seller. 

App. 27

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 27 of 128
Scott D. Hakala, Ph.D., CFA Page 9

• In re Theragenics Corp. Securities Litigation; United States District Court, Northern District of Georgia,

Atlanta Division (Civil Action No. 1:99-CV-141-TWT); deposition testimony April 2, 2003, and August 14, 

2003; testified as to materiality, causation, inflation per share and damages as a result of allegations of

securities fraud (violations of the Securities Exchange Act of 1934, Rule 10b-5). 

• Teleplus, Inc., v. Avantel, S.A.; United States District Court, Western District of Texas, San Antonio

Division (Civil No. SA-98-CA-0849 FB); deposition testimony March 26, 2003; trial testimony September 

25, 26 and 29, 2003; testified as to the valuation of a reseller and marketer of long-distance telephone

services (primarily for domestic and international service in Mexico). 

• Russell Grigsby vs. ProTrader Group Management, L.L.C., et al.; American Arbitration Association

(Cause No. 70-180-00648-02); deposition testimony March 7, 2003; arbitration hearing testimony

October 17 and November 3, 2003; testified in a fraud and shareholder oppression case as to the fair

value of a brokerage firm with specialization in day trading. 

• Donald P. Williams vs. Peter O. Holliday, III, MD, and Open MRI of Decatur; Circuit Court of Morgan

County, Alabama (Case Number: CV-00-974); testified at trial March 4, 2003; testified as to the value of 

loan guarantees and the value of a business operating an MRI in a shareholder oppression lawsuit. 

• Menard, Inc. v. Commissioner of Internal Revenue; U.S. Tax Court; testified in trial February 27, 2003;

testified as to the compensation of executives in comparable and guideline companies and the proper

valuation of incentive compensation benefits.

• Richard Strauss, Sovereign Texas Homes, ltd., et al. vs. Wallace Sanders & Company, et al.; 191st

Judicial District, Dallas County, Texas (Cause No. 02-2562-J); deposition testimony February 14 and 20, 

2003; testified as to materiality, causation, and damages as a result of allegations of improper

accounting. 

• Paul Dzera, Philip J. Gund and Stephen Marotta v. Zolfo Cooper, L.L.C.; American Arbitration

Association (Arbitration no. 18Y180143301), Newark, New Jersey; hearing testimony February 11,

2003; testified as to measures of economic loss associated with claims brought by defendant. 

• In re VISIONAMERICA, INC. SECURITIES LITIGATION; United States District Court, Middle District of 

Tennessee, Nashville Division (Master File No. 3-00-0279); deposition testimony December 12, 2002;

testified as to materiality, causation, inflation per share and damages as a result of allegations of

securities fraud involving accounting misstatements (violations of the Securities Exchange Act of 1934,

Rule 10b-5). 

• In re National Golf Properties, Inc. Shareholder Litigation; (Masseo Investment Partners, Ltd., Anne

Marie Rouleau, Thomas Feiman, IRA and Robert Lewis, On Behalf of Themselves and All Others

Similarly Situated, vs. James M. Stanich, et al.; Superior Court of the State of California, County of Los 

Angeles (Lead Case No. BC268215); deposition testimony November 22, 2002; testified as to fairness

and problems with a fairness opinion involving a proposed acquisition of the public REIT, including

process, disclosure and allocations of proceeds problems. 

• Ralph R. Unstead, Jr., On behalf of Himself and All Other Similarly Situated, v. Intelect Communications, 

Inc., et al.; U.S. District Court for the Northern District of Texas, Dallas Division (No. 3:99-CV-2604-M); 

deposition testimony October 31, 2002; testified as to materiality, causation and damages in a class

action securities case. 

• Physicians Resource Group, Inc. and EyeCorp, Inc.., vs. Dr. David Meyer, et al..; U.S. Bankruptcy

Court, Northern District of Texas, Dallas Division; deposition testimony October 22, 2002; trial testimony 

February 7, 2002; testified as to issues of solvency and reasonably equivalent damages as a result of

certain transactions between the defendants and the plaintiffs prior to bankruptcy. 

App. 28

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 28 of 128
Scott D. Hakala, Ph.D., CFA Page 10

• Maximicer, L.L.C., vs. PepsiCo, Inc.; U.S. District Court for the Eastern District of Texas, Marshall

Division (No. 2-01-CV-132(tjw)); deposition testimony October 21, 2002; trial testimony December 10,

2002; testified as to damages arising from claims of commercial defamation and other causes. 

• HALCYON INVESTMENTS INC., f/k/a B.A.S.S.,Inc., et al.. vs B.A.S.S., LLC, f/k/a LIVEWELL

ACQUISITION,LLC, B.A.S.S. (IP)., et al.; AAA Arbitration (File No. 30 E 181 00434 02); deposition

testimony October 10, 2002; testified as to due diligence, disclosures and economic damages estimates 

involving an agreement to sell a business between the parties (subject to confidentiality agreement). 

• Jerry Krim, et al. v. pcOrder.com, Inc., et al.; U.S. District Court for the Western District of Texas, Austin 

Division (Master File No. A:00-CA-776-SS); hearing testimony September 20, 2002; testified in a class

certification hearing on the trading of shares and source of shares purchased by proposed lead plaintiffs. 

• APA EXCELSIOR III L.P., APA EXCELSIOR III OFFSHORE, L.P.,APA/FOSTIN PENNSYLVANIA 

VENTURE CAPITAL FUND, CIN VENTURE NOMINEES LIMITED, STUART A. EPSTEIN and DAVID 

EPSTEIN, v. PREMIERE TECHNOLOGIES, INC.,BOLAND T. JONES, PATRICK G.JONES, GEORGE 

W. BAKER, SR., and RAYMOND H. PIRTLE, JR; U.S. District Court for the Northern District of Georgia 

(Civil Action No. 1:99-CV-1377-JOF); deposition testimony September 4, 2002; testified as to the

materiality of certain representations and damages in a securities case.

• Microtune, L.P. v. Broadcom Corporation; U.S. District Court for the Eastern District of Texas, Sherman

Division (Civil Action No. 4:01-CV-023); deposition testimony August 29, 2002; testified as to the

reasonable royalty in a patent infringement case. 

• John F. Havens, On Behalf of Himself and All Others Similarly Situated, vs. James L. Pate, et al.; and

Howard Lasker, On Behalf of Himself and All Others Similarly Situated, vs. James L. Pate, et al., 295th

Judicial District, Harris County, Texas (Cause No. 2002-16085); deposition testimony July 15, 2002;

hearing testimony July 18, 2002; testified as to the materiality of certain information omitted from a proxy 

to Pennzoil-Quaker State shareholders, issues with respect to the fairness opinion analysis by

Pennzoil’s financial advisor, the determination of fairness and issues with respect to mergers and

acquisitions. 

• Lawrence D. Poliner, M.D. v. Texas Health Systems, et al.; U.S. District Court, Northern District of

Texas, Dallas Division (Civil Action No. 3:00CV1007-P); deposition testimony May 20, 2002; testified as 

to certain anti-competitive issues involving a specialist medical practice. 

• In re: Chartwell Health Care, Inc.; John H. Litzler, Chapter 7 Trustee, vs. Irving D. Boyes, et al.; U.S. 

Bankruptcy Court, Northern District of Texas, Dallas Division (Case No. 398-38546-SAF-7); deposition

testimony April 25, 2002; testified as to solvency and economic losses of a nursing home operator.

• Leonard Sauls,Jr. v. The Estate of William Lee Hatch, Jr., Deceased, et al.; In the Probate Court

Number One, Travis County, Texas (Cause No. 75278-A); deposition testimony March 22, 2002;

testified as to the measurement of lost future earning capacity, case settled before issuance of

deposition transcript. 

• Leland Stenovich, et al., vs. Spencer F. Eccles, et al.; Third Judicial District Court, Salt Lake County,

State of Utah (Class Action, Case No. 000907870); deposition testimony February 5 and 6, 2002;

testified as to standards of practice, fairness and adequacy of consideration in a class action lawsuit

relating to the acquisition of First Security Corporation by Wells Fargo.

• In re Computer Associates Class Action Securities Litigation; U.S. District Court for the Eastern District

of New York (Master File No. 98-CV-4839); deposition testimony January 23 and 24, 2002; testified as

to materiality, causation and damages in a securities fraud lawsuit.

App. 29

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 29 of 128
Scott D. Hakala, Ph.D., CFA Page 11

• Pamela Graham Reeves vs. VIJ, Inc. d/b/a National Utilities Co./NUCO and Greer Industries, Inc.; U.S. 

District Court for the Northern District of Texas-Fort Worth Division (Case No. 400=CV-1671-BE); trial

testimony January 9, 2002; testified as to market wages, current job market and likelihood of

employment for an individual alleged to have been wrongfully terminated.

• Patricia E. Vincent and James R. Vincent v. Bank of America Texas, N.A..; In the 68th Judicial District

Court, Dallas County, Texas (Cause No. DV99-00745); testimony in hearing in December 2000 and trial 

testimony December 18, 2001; testified as to the proper calculation of interest on a home mortgage and 

common standards and practices for calculating mortgage interest. 

• Joan C. Howard and Charles A. Anderson, on behalf of themselves and all others similarly situated. v.

Everex Systems, Inc., and Steven L.W. Hui, et al..; U.S. District Court for the Northern District of

California (Case No. C 92 3742 CAL); deposition testimony November 19 and 20 and December 17,

2001; testified as to materiality, causation and damages in a securities fraud lawsuit.

• Reinsurance International Services Company, L.L.C. v. Lambert Fenchurch Group Limited, et al.; In the 

98th Judicial District Court, Travis County Texas (Civil Action No. 99-00745); deposition testimony

September 20, 2001; testified as to lost profits and lost business value experienced by a reinsurance

broker relating to allegations of misrepresentations and breach of duty.

• Robert Alpert, James Ventures, L.P., Markus Investments, Inc. and James Investments, Inc. vs.

Innovative Valve Technologies, Inc., et al..; U.S. District Court for the Southern District of Texas,

Houston Division (Civil Action No. H-01-076); deposition testimony September 19, 2001; testified as to

materiality, causation and damages in a securities fraud lawsuit.

• Premier Lifestyles International Corporation vs. Electronic Clearing House, Inc.; XpresscheX, Inc., et al.; 

Superior Court for the State of California, County of Los Angeles (Case No. BC230691); deposition

testimony September 17 and 27, 2001; trial testimony November 27 and 28, 2001; testified as to lost

business opportunities and damages arising from various causes of action. 

• In re Phycor Corporation Securities Litigation; U.S. District Court for the Middle District of Tennessee,

Nashville Division (Civil Action No. 3-98-0834); deposition testimony August 9 and November 6, 2001;

testified as to materiality, causation and damages in a securities class action lawsuit.

• Ben Higbee and Bridgestone Healthcare Management, Inc. .vs. Bridgestone Healthcare Management,

Inc.,...and David E. Sones; 101st Judicial District, Dallas County, Texas (Cause No. 00-7365-3); 

deposition testimony June 21, 2001; testified as to preliminary findings as to fairness of certain

transactions involving a workers’ compensation and rehabilitation business.

• Auto Wax Co., Inc. v. Mark V Products, Inc...; U.S. District Court for the Northern District of Texas,

Dallas Division (Civil Action No. 3-99 CV 0982-T); deposition testimony April 25, 2001; trial testimony

June 29, 2001; testified as to the reasonable royalty and lost profits in a patent infringement and

trademark infringement case. 

App. 30

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 30 of 128
EXHIBIT B

App. 31

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 31 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

Market & Industry Regressions on Non-Event Days

Coefficient

Centered R**2 9.47% Percent of Variance explained by regression

SEE 3.96% Standard error of residual (portion of movement unexplained by regression)

Constant -0.22% -1.18

S6INFT 54.34% 4.19 S&P 600 INFO TECH INDEX

SUBINDEX 17.76% 2.41 Equally-Weighted Geometrix Index of ADAT, TMWD, MDRX and SCUR

Market, Event and Industry Regressions

Centered R**2 52.19% Percent of Variance explained by regression

SEE 3.96% Standard error of residual (portion of movement unexplained by regression)

Constant -0.22% (1.18)

S6INFT 54.34% 4.19 S&P 600 INFO TECH INDEX

SUBINDEX 17.76% 2.41 Equally-Weighted Geometrix Index of ADAT, TMWD, MDRX and SCUR

 1 10/31/2002 -0.82% -0.21

Zix Corporation announced results for the third quarter ended September 30, 2002. For 

the third quarter 2002, Zix Corp. reported a net loss of $8,763,000 or 63¢ per share, on 

revenues of $434,000, a 30% improvement over the net loss of $12,440,000, or 73¢ per 

share, on revenues of $36,000 recorded for the third quarter of 2001. For the 9-month 

period ended September 30, 2002, Zix Corp. reported a net loss of $26,480,000, or 

$1.64 per share, on revenues of $1,126,000, compared to a net loss of $37,396,000, or 

$2.19 per share, on revenues of $263,000 for the first 9 months of 2001. Included in 

these net losses are significant non-cash charges, totaling $12,449,000 or 47% of the 

net loss for the 9-month period ended September 30, 2002, and $15,761,000 or 42% of 

the net loss for the 9-month period ended September 30, 2001(Business Wire 10.30.02)

 2 11/07/2002 5.72% 1.39

Zix Corporation announced an agreement under which Bell Canada will offer subscribers 

to its business Internet services the capability to send and receive secure email using Zix 

Corp.'s email encryption services(Business Wire)

 3 11/14/2002 -4.04% -1.03

Zix Corporation announced it will begin a Web seminar series November 20 highlighting 

the importance of meeting Health Insurance Portability and Accountability Act guidelines 

by the April 14, 2003, deadline and including email security solutions as a vital part of 

Internet risk management strategies for the healthcare industry(Business Wire 11.13.02)

1 of 20

App. 32

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 32 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

 4 12/04/2002 11.59% 2.75

Zix Corporation announces a full conversion of its convertible notes. All debt is 

eliminated from the company's balance sheet(Business Wire)

 5 12/10/2002 -1.94% -0.49

Zix Corporation announced it will conduct a Web seminar December 18 featuring Joyce 

Graff, Vice President and Research Director for Gartner, Inc., who will discuss the 

importance of secure email and how companies can ensure consistency in their 

corporate email security policies(Business Wire)

 6 12/23/2002 7.02% 1.70

CUNA Mutual selects Zix Corporation as its worldwide secure e-messaging solutions 

provider(Business Wire)

 7 01/07/2003 3.50% 0.87

Zix Corporation announced it will conduct a Web seminar January 15 highlighting the 

importance of understanding end-user requirements when evaluating e-messaging 

security solutions(Business Wire)

 8 01/15/2003 2.56% 0.64

Zix Corporation announced that its shareholders approved a proposal presented by the 

company that has the effect of strengthening Zix Corp.'s financial position. With this 

approval, the company now has broader latitude to redeem its outstanding preferred 

shares for common stock rather than using its cash resources. This proposal was 

presented for shareholder approval to comply with Marketplace Rule 4350 of the 

NASDAQ National Market and the company's agreements with purchasers of convertible 

equity securities issued in September 2002 in connection with a previously announced 

$16M private placement. With this shareholder vote, the company may now issue the 

common stock associated with the private placement in an amount equal to or greater 

than 20% of its outstanding common stock and may issue common stock at a price 

below the greater of the book or market value of its common stock at the time of the 

financing to certain holders of its convertible preferred stock(Business Wire)

 9 01/21/2003 -3.09% -0.79

Zix Corporation announced a 2-year agreement with the West Surrey Health 

Community, part of the United Kingdom's National Health Service (NHS), to provide 

secure e-messaging for the regional healthcare community(Business Wire)

 10 01/22/2003 -6.45% -1.68

Zix Corporation establishes Zix Research Center to extend leadership in secure emessaging(Business Wire)

 11 01/29/2003 -4.51% -1.16

Blue Cross of Northeastern Pennsylvania selects Zix Corporation for company-wide emessaging security(Business Wire) 

 12 01/31/2003 2.17% 0.54

The Chicago Board Options Exchange announced it will list Long-term Equity 

Anticipation Securities (LEAPS) on Zix Corporation beginning Friday, January 31, 

2003(CRL 01.30.03 (found on Bloomberg))

 13 02/04/2003 -0.59% -0.15

Zix Corporation announced the latest version of ZixVPM(TM), an e-messaging gateway 

solution that provides company-wide privacy protection for inbound and outbound email 

communications combined with sophisticated policy management capabilities(Business 

Wire)

2 of 20

App. 33

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 33 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

 14 02/05/2003 0.94% 0.24

Zix Corporation announced its new ZixWorks(TM) offering. ZixWorks is the first service 

that addresses the requirements of organizations seeking to safeguard their 

communications against email-borne threats, to deliver policy-driven security, and to 

comply with various regulations and mandates regarding transmittal and retention of 

email. ZixWorks delivers anti-virus, anti-spam, content scanning, encryption, and 

archiving capabilities in a fully managed and hosted service. The service satisfies the 

growing number of email requirements in one simple solution and is suited for both large 

and small organizations(Business Wire)

 15 02/06/2003 1.93% 0.48

Zix Corporation announced that MVP Health Care (MVP), a full-service employee health 

benefits company based in New York and serving more than 540,000 members 

throughout New York and Vermont, has chosen Zix Corp. secure e-messaging services 

for their cost-effective and comprehensive approach to securing and managing emessaging in compliance with privacy regulations under the Health Insurance Portability 

and Accountability Act of 1996 (HIPAA)(Business Wire)

 16 02/07/2003 2.51% 0.62

Zix Corporation announced its fourth quarter and annual financial results for the period 

ended December 31, 2002. For the fourth quarter 2002, Zix Corp. reported a net loss of 

$6,957,000 or 39¢ per share, on revenues of $546,000, compared to a net loss of 

$19,350,000, or $1.13 per share, on revenues of $54,000 recorded for the fourth quarter 

of 2001. For the year ended December 31, 2002, Zix Corp. reported a net loss of 

$33,437,000, or $2.02 per share, on revenues of $1,672,000, a 41% improvement over 

the net loss of $56,746,000, or $3.32 per share, on revenues of $317,000 for the year 

ended December 31, 2001. Included in these annual net losses are significant non-cash 

charges, totaling $14,741,000 or 44% of the net loss for 2002, and $28,301,000 or 50% 

of the net loss for 2001(Business Wire 02.06.03)

 17 02/11/2003 -1.67% -0.42

Zix Corporation announced it will conduct a Web seminar February 19 highlighting the 

smart e-messaging solutions of its new ZixWorks(TM) total-care hosted email 

service(Business Wire)

 18 02/24/2003 4.28% 1.05

Zix Corporation announced its support for HealthyEmail(TM), a nonprofit organization 

created to maximize and accelerate the adoption of email usage in the healthcare 

industry(Associated Press Newswires 02.21.03)

 19 02/27/2003 7.74% 1.88

Zix Corporation to provide Humana with ZixWorks - HIPAA compliant secure emessaging(Business Wire)

 20 03/05/2003 -6.83% -1.78

Freeman Health System selects Zix Corporation for system-wide email protection 

services(Business Wire)

 21 03/18/2003 -0.03% -0.01

Zix Corporation announced that Mississippi Baptist Health Systems (Baptist), a regional 

healthcare provider based in Jackson, Mississippi, has selected Zix Corp. as its trusted emessaging solutions provider(Business Wire)

3 of 20

App. 34

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 34 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

 22 03/25/2003 0.13% 0.03

Zix Corporation announced that Blue Cross and Blue Shield of Kansas (BCBSKS), an 

independent licensee of the Blue Cross and Blue Shield Association and largest health 

insurer in the state of Kansas, has selected Zix Corp.'s entire suite of secure emessaging and content management services for 1,000 users enterprise-wide to help 

comply with the Health Insurance Portability and Accountability Act of 1996 (HIPAA) 

guidelines by the April 14 deadline(Business Wire)

 23 03/27/2003 -0.94% -0.24

Zix Corporation announced that HealthEast Care System, a nonprofit healthcare system 

based in St. Paul, Minnesota, has selected Zix Corp. to provide email protection services 

for 2,500 users to comply with the mandates of the Health Insurance Portability and 

Accountability Act of 1996 (HIPAA) concerning Protected Health Information (PHI) by the 

April 14 deadline(Business Wire)

 24 04/02/2003 4.78% 1.17

American Medical Security Group picks Zix Corp. for enterprise-wide HIPAA-compliant emessaging protection(Associated Press Newswires)

 25 04/17/2003 -2.61% -0.66

Zix Corporation announced it has been selected by the University of Utah Health 

Sciences Center (UUHSC), a major university-based patient care hospital system, 

education, research, and health professions training center for a 6-state region, to 

provide secure email for 12,000 users including physicians, students, and staff. UUHSC 

purchased ZixVPM(TM) (Zix Virtual Private Messenger(TM)), a company-wide gateway 

solution that provides policy-driven secure email, and ZixPort(TM), an integrated secure 

e-messaging portal that mirrors the look and feel of the organization's existing Web 

portal. UUHSC will encrypt Protected Health Information (PHI) to comply with the 

privacy regulations of the Health Insurance Portability and Accountability Act of 1996 

(HIPAA), which had a deadline of April 14, 2003. The University of Utah Medical Group, 

a group of 850 board-certified physicians, also played an important role in the initiative 

and selection of the solution(Business Wire)

 26 04/21/2003 3.43% 0.84

Zix Corporation announced that National Imaging Associates, Inc., one of the nation's 

leading providers of radiology benefits management, has chosen Zix Corp. services to 

help enforce its company-wide email security policies(Business Wire)

 27 04/25/2003 -10.16% -2.69

Zix Corporation announced financial results for the first quarter ended March 31, 2003. 

For the first quarter 2003, Zix Corp. reported a net loss of $6,831,000 or 36¢ per share, 

on revenues of $639,000, a 30% improvement over the net loss of $9,788,000, or 56¢ 

per share, on revenues of $389,000 recorded for the first quarter of 2002. Equally 

important is the mix of new healthcare business in the quarter. Excluding transactions 

over $300,000, we concluded over 25 major transactions averaging in excess of $50,000 

each. This result compares to only 5 transactions at an average of $34,000 each 

concluded in the fourth quarter of 2002. By comparison, this quarter's results represent 

a 5-fold increase in the number of such transactions and almost a 7-fold increase in the 

total dollar value of such transactions over last quarter's(Business Wire)

4 of 20

App. 35

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 35 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

 28 04/28/2003 1.00% 0.25

Zix Corporation announced that 3 members of the New Jersey-based Robert Wood 

Johnson Health System and Network, one of the largest healthcare systems in New 

Jersey and the only one with a medical school as a partner, have selected Zix Corp. for 

their e-messaging protection services(Business Wire)

 29 04/29/2003 -1.19% -0.30

Zix Corporation announced it has been selected by IASIS Healthcare Corporation, a 

leading owner and operator of acute care hospitals across the United States, to provide 

email encryption for 2,250 users, anti-spam, anti-virus, content filtering and archiving - all 

services provided by ZixWorks(TM). ZixWorks is a hosted and managed service 

operating outside a company's network that acts as a forward perimeter defense or 

firewall against external email threats, protects customer networks, and reduces wasted 

network bandwidth. The service satisfies the growing number of requirements for 

managing email with one simple solution and is suited for both large and small 

organizations. Humana Inc., ranked as the 7th largest company in the health benefits 

provider industry by Fortune Magazine, is an example of a larger corporation currently 

using ZixWorks(Business Wire)

 30 05/05/2003 -0.23% -0.06

Zix Corporation announced a reseller agreement with Integralis Limited, a wholly owned 

subsidiary of Articon-Integralis (Neuer Markt: AAGN), Europe's largest specialist security 

systems integrator(Business Wire)

 31 05/12/2003 -1.73% -0.44

Zix Corporation announced it has earned the American Institute of Certified Public 

Accountants SysTrust(TM) certification for system reliability for effectiveness of controls 

over the security, availability, processing integrity, and confidentiality of Zix Corp.'s Zix 

Secure Center(TM), the world-class data center that handles operations for Zix Corp. 

services. Zix Corp. met the principles and criteria established for SysTrust by the 

American Institute of Certified Public Accountants (AICPA) and the Canadian Institute of 

Chartered Accountants (CICA) following a Deloitte & Touche LLP evaluation during the 

period of March 1 to April 30(Business Wire)

 32 05/28/2003 -8.84% -2.33

Zix Corporation announced that St. Agnes HealthCare, a full-service community teaching 

hospital and member of the Ascension Health network, has selected Zix Corp. as its 

organization-wide secure email protection provider(Business Wire)

 33 06/05/2003 0.16% 0.04

Zix Corporation announced the results of a recent study conducted by its Zix Research 

Center, revealing that many leading healthcare organizations are transmitting email 

messages containing federally protected health information over public networks without 

using appropriate safeguards, contrary to recently implemented regulations(Business 

Wire)

 34 06/19/2003 -1.81% -0.46

Zix Corporation announced that the New Jersey Hospital Association (NJHA) has 

selected Zix Corp. as its preferred provider of secure e-messaging solutions to New 

Jersey healthcare organizations to help them comply with the new federal laws and 

regulations requiring privacy and security for Protected Health Information 

(PHI)(Business Wire)

5 of 20

App. 36

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 36 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

 35 06/26/2003 -2.00% -0.51

Zix Corporation announced that it has completed private placements in which the 

company received an aggregate of $5,750,000 in cash in exchange for 1,566,758 shares 

of the company's common stock and warrants to purchase 231,855 shares of the 

company's common stock. The shares of common stock were sold at a price of $3.67 

per share and the warrants have an exercise price of $4.96 per share. The warrants are 

immediately exercisable and expire in June 2007(Associated Press Newswires); Zix 

Corporation announced it has been selected by Blue Cross and Blue Shield of Nebraska, 

Nebraska's largest health insurer, to enable secure e-messaging and to help the 

organization meet the privacy and security guidelines set by industry and federal 

mandates, including the Health Insurance Portability and Accountability Act of 1996 

(HIPAA)(Business Wire)

 36 07/01/2003 0.03% 0.01

Zix Corporation announced that St. Louis-based Ascension Health, the largest not-forprofit Catholic healthcare system in the United States, has chosen Zix Corp. as its 

preferred provider and is recommending that its member ministries standardize on Zix 

Corp. secure e-messaging services to help meet the mandates of the Health Insurance 

Portability and Accountability Act of 1996 (HIPAA) regarding electronic communications 

over public networks(Business Wire)

 37 07/07/2003 2.16% 0.54

Zix Corporation filed an 8-K on 07.07, in which the company reported that it and Entrust, 

Inc. have mutually agreed to terminate the Marketing and Distribution Agreement dated 

November 6, 2000. In connection with the termination of the Marketing Agreement, 

Entrust has paid Zix Corp. $700,000 in lieu of future minimum guaranteed 

payments(Market News Publishing)

 38 07/08/2003 -1.80% -0.45

Zix Corporation announced that Jewish Hospital HealthCare Services (JHHS), the 

leading center for adult tertiary medical/surgical care in Kentucky and southern Indiana, 

has selected Zix Corp. as its email security provider(Business Wire)

 39 07/17/2003 3.49% 0.85

Zix Corporation announced that Cole Vision Corporation has selected Zix Corp. for its 

company-wide email security solution(Business Wire)

 40 07/23/2003 6.45% 1.57

Zix Corporation acquires assets from leading electronic prescription provider, 

PocketScript, LLC(Business Wire 07.22.03); Tufts Health Plan and Zix Corporation 

announce alliance to provide wireless prescribing to Massachusetts physicians(Business 

Wire) 

 41 07/31/2003 1.22% 0.30

Zix Corporation announced that Independent Health, a health solutions company 

providing health benefits and services to nearly 440,000 individuals, has selected Zix 

Corp. as its secure e-messaging provider. The Buffalo-based organization selected Zix 

Corp. services for their ability to integrate seamlessly into its existing network and protect 

member privacy in efforts to comply with the Health Portability and Accountability Act of 

1996 (HIPAA)(Business Wire)

 42 08/08/2003 -0.77% -0.19

Zix Corporation filed an S-8 to register 600,000 shares of common stock issuable under 

its 2003 Stock Compensation Plan(Market News Publishing)

6 of 20

App. 37

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 37 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

 43 08/12/2003 -12.11% -3.25

Zix Corporation announced the ZixVPM(R) Alert Service, a new option being offered to 

subscribers of the ZixVPM (Zix Virtual Private Messenger) service, Zix Corp.'s serverbased secure e-messaging solution(Bloomberg 08.11.03)

 44 08/13/2003 5.65% 1.39

Zix Corporation is selected by Blue Plans in New York for secure e-messaging and 

protection services(Business Wire)

 45 08/18/2003 -1.76% -0.45

Zix Corporation announced its continuing strength in the New Jersey healthcare market 

with a 3-year contract from AtlantiCare, an integrated healthcare system based in Egg 

Harbor Township, New Jersey. AtlantiCare joins other leading New Jersey healthcare 

organizations that have selected Zix Corp. as their e-messaging protection provider 

including the New Jersey Hospital Association, Saint Barnabas Health Care System, 

Robert Wood Johnson University Hospital Health System, Solaris Health System, 

CentraState Healthcare System, Rahway Hospital, St. Joseph's Hospital and Medical 

Center, and QualCare(Business Wire)

 46 08/20/2003 -4.93% -1.27

Zix Corporation introduces spam detection capability in ZixAuditor 2.0(Business Wire)

 47 08/26/2003 0.53% 0.13

Zix Corporation announced that one of the largest captive finance companies in the 

country has completed the deployment of Zix Corp.'s secure e-messaging services. The 

company is using ZixPort(TM), an integrated secure e-messaging portal that can mirror 

the look and feel of any organization's existing Web portal. ZixPort enables over 

300,000 customers to transmit confidential information to customer service 

representatives via secure email through the company's Web site. The California-based 

organization selected Zix Corp. services in April for its ability to seamlessly integrate with 

existing single sign-on network infrastructure, its quick deployment schedule, and its 

ability to customize the portal to match existing corporate branding(Business Wire)

 48 09/02/2003 4.03% 0.99

Elron Electronic Industries Ltd. announced the sale of substantially all of the assets and 

business of its majority owned subsidiary, Elron Software Inc., provider of spam, email 

and web filtering solutions, to Zix Corporation. In consideration for the assets and 

business sold, Zix Corp. issued to Elron Software 1,709,402 shares of its common stock, 

with a market value of approximately $6M and a $1M convertible note bearing an interest 

rate of 5.75%. In addition, Zix Corp. assumed certain liabilities of Elron Software. Zix 

Corp. is a global provider of e-messaging protection and transaction services(Business 

Wire)

 49 09/04/2003 14.50% 3.41

Zix Corporation selected by AllHealth as its recommended secure e-messaging 

provider(Business Wire 09.03.03); Zix Corporation signs John C. Lincoln Health 

Network with 3-year contract(Business Wire)

 50 09/09/2003 11.93% 2.82

Zix Corporation announced it will conduct a Web seminar September 16 highlighting the 

risks healthcare organizations face with their email policies and how to ensure an 

effective secure e-messaging program(Bloomberg)

7 of 20

App. 38

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 38 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

 51 09/11/2003 2.14% 0.53

Zix Corporation announced that a 3-year agreement was signed for secure e-messaging 

with MemorialCare Medical Centers, a 5-hospital system located in Southern 

California(Dow Jones News Service)

 52 09/18/2003 6.29% 1.54

Zix Corporation offers protection for organizations at risk of lawsuits by recording 

industry(Business Wire)

 53 09/19/2003 20.58% 4.71

Zix Corp. signs pact with US Department of Treasury's Office of the Comptroller of the 

Currency for secure e-messaging(Business Wire 09.18.03)

 54 09/26/2003 -3.77% -0.97

Zix Corporation signs Children's Specialized Hospital with 3-year contract for secure emessaging (Business Wire 09.25.03)

 55 10/06/2003 6.06% 1.48

Zix Corporation announced a new version of ZixPort(TM), a secure Web-based 

messaging portal that adds secure communication capabilities to any corporate Web 

site(Business Wire)

 56 10/07/2003 4.23% 1.04

Zix Corp. filed an 8-K on 10.07, in which the company reported that effective 09.30, it 

elected to convert the remaining outstanding shares of its Series A Convertible Preferred 

Stock and its Series B Convertible Preferred Stock into shares of the Registrants 

common stock. The closing price of the company's common stock exceeded specified 

prices for the required number of days, thus permitting the company to effect the 

conversion. 462,501 Series A shares and related accrued dividends were converted into 

475,362 shares of the company's common stock, at a conversion rate of $4.07 per 

share, and 778,312 Series B shares and related accrued dividends were converted into 

795,223 shares of the company's common stock, at a conversion rate of $3.76 per 

share(Market News Publishing)

 57 10/10/2003 -5.23% -1.35

Zix Corp. registered 1.99M shares of its common stock on behalf of Elron Electronic 

Industries Ltd, which received the shares in a September merger(Dow Jones Corporate 

Filings Alert 10.09.03)

 58 10/20/2003 4.75% 1.17

Zix Corporation to provide Perdue Farms' healthcare clinics with e-prescribing 

technology(Business Wire)

 59 10/22/2003 -3.01% -0.77

Zix Corporation selected by Atlantic Health System with 3-year contract for email 

protection services(Business Wire); 

 60 10/24/2003 2.52% 0.63

Zix Corporation announced its Care Delivery Solutions Group has received the Investing 

in Information award from the Massachusetts Health Data Consortium (the Consortium) 

at HealthMart 2003 for its PocketScript solution, a PDA application that streamlines the 

medical prescription process by enabling providers to write and transmit prescriptions 

electronically (Business Wire)

 61 10/27/2003 1.53% 0.38

Zix Corporation announced that Magellan Health Services, the nation's leading managed 

behavioral health and wellness company, has chosen Zix Corp. as its e-messaging 

protection provider. The 2-year contract will enable secure email communication 

between 7,000 users including licensed mental health professionals, patients, providers, 

and over 200 business partners to help meet the email safeguard requirements of the 

Health Insurance Portability and Accountability Act of 1996 (HIPAA)(Business Wire)

8 of 20

App. 39

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 39 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

 62 10/30/2003 7.58% 1.84

Zix Corporation selected by Hackensack University Medical Center with 3-year contract 

for secure e-messaging(Business Wire)

 63 10/31/2003 -0.24% -0.06

Zix Corporation announced financial results for the third quarter ended September 30, 

2003. Zix Corp. recorded a third quarter, 2003 net loss of $6.5M, or 29¢ per share, an 

improvement of 26% compared to a net loss of $8.8M, or 63¢ per share, for the 

corresponding quarter of 2002. Revenues were $2.2M in the third quarter of 2003, an 

increase of 450% compared to $400,000 in the third quarter of 2002. Cash and 

marketable securities balances as of September 30, 2003 were $16.6M(Business Wire 

10.30.03); 2 of Massachusetts' major insurers - Blue Cross Blue Shield of 

Massachusetts (BCBSMA) and Tufts Health Plan (THP) announced that they will have 

secured $3M to fund an initiative to offer physicians a comprehensive e-prescribing 

program that will dramatically improve patient safety and reduce medical costs(Business 

Wire)

 64 11/06/2003 -1.04% -0.26

Dennis Heathcote, Vice President of Zix Corp. sold 9,800 shares at $9.04, holdings 

n/a(Bloomberg 11.05.03); Wael Mohamed, Vice President of Zix Corp. sold 32,980 

shares at $9.00-$9.01, holdings(Bloomberg 11.05.03)

 65 11/12/2003 2.85% 0.71

Zix Corporation receives 5,500 user upgrades from Environment Canada for Web 

filtering services(Business Wire)

 66 11/17/2003 2.07% 0.52

Zix Corporation announced that Group Health Incorporated (GHI), a statewide not-forprofit health insurer in New York, has signed a sponsorship agreement to expand its 

current Zix Corp. PocketScript(tm) e-prescribing program(Business Wire); Zix Corp.: 

Steve M. York files to sell 105,000 shares(Bloomberg 11.14.03)

 67 11/19/2003 0.89% 0.22

Zix Corporation together with Farmington-based managed care company, ConnectiCare, 

have launched a 1 year pilot program to provide its PocketScript e-prescribing solution to 

physicians at New Britain's Grove Hill Medical Center, the largest independent multispecialty healthcare clinic in the state of Connecticut(Business Wire 11.18.03)

 68 11/21/2003 3.03% 0.75

Zix Corporation announced that BryanLGH Medical Center, a nonprofit healthcare 

organization based in Lincoln, Nebraska, has signed a 3-year contract with Zix Corp. for 

email protection services(Bloomberg)

 69 11/24/2003 -3.30% -0.84

Elron Electronic Industries Ltd. announced that it completed sales of approximately 

850,000 shares of common stock of Zix Corporation for approximately $7.1M, which 

shares were received as part of the sale of the assets and business of Elron's majorityowned subsidiary, Elron SW, Inc. (formerly Elron Software, Inc.) to Zix in September this 

year. Elron still holds approximately 850,000 shares of Zix and a $1.0M convertible 

note(Business Wire 11.23.03)

9 of 20

App. 40

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 40 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

 70 12/02/2003 4.28% 1.06

Zix Corporation announced a contract with the Office of Thrift Supervision (OTS), a 

bureau of the US Department of the Treasury, for secure e-messaging to ensure 

confidential communications to all savings associations in the country. The OTS 

regulates and supervises all federally chartered and many state-chartered thrift 

institutions in order to maintain their safety, soundness, and compliance with consumer 

laws(Business Wire)

 71 12/08/2003 -3.46% -0.89

Zix Corporation announced that Cedars-Sinai Medical Center, one of the largest 

nonprofit academic medical centers in the Western US, has selected Zix Corp. for its 

secure e-messaging services(Bloomberg)

 72 12/12/2003 5.36% 1.32

Zix Corporation signs $450,000 contract with one of the nation's leading health benefits 

companies(Business Wire)

 73 12/17/2003 1.58% 0.40

Zix Corporation announced that it has competed the first stage of its second American 

Institute of Certified Public Accountants SysTrust(TM) certification review by 

Deloitte(Bloomberg) 

 74 12/31/2003 6.08% 1.49

Zix Corporation selected by Blue Cross and Blue Shield of Oklahoma for secure emessaging services(Business Wire 12.30.03)

 75 01/12/2004 2.57% 0.64

Zix Corporation and Blue Cross Blue Shield of Massachusetts (BCBSMA), and Tufts 

Health Plan, announced that CareGroup Healthcare System, based in Boston, 

Massachusetts, will deploy Zix Corp.'s PocketScript e-prescribing technology to an initial 

500 physicians through an e-prescribing program called the "eRx 

Collaborative"(Bloomberg)

 76 01/14/2004 2.27% 0.57

Zix Corporation announced that the Lancashire County Council, an administration in 

Northwest England governing over 1.3M citizens, has selected Zix Corp. as its secure 

email provider(Bloomberg)

 77 01/20/2004 9.63% 2.30

Zix Corporation selected by Arizona Hospital and Healthcare Association Service 

Corporation as a preferred vendor(Business Wire) 

 78 01/21/2004 7.72% 1.87

Philadelphia Stock Exchange announced that it will begin trading nine new options one 

of which is Zix Corp(LexisNexis - M2 Presswire)

 79 01/26/2004 8.00% 1.94

Zix Corporation appoints industry veteran Rick Spurr President and Chief Operating 

Officer. "Rick Spurr is a valuable and strategic addition to our senior management team, 

bringing us a world-class resource with a proven history of success," said John Ryan, 

Chairman, President and CEO for Zix Corp. "As we move Zix Corp. from an early-stage 

technology company to a high-growth company, acquiring personnel with the appropriate 

management skills is a crucial part of our growth strategy. I am thrilled that Rick has 

agreed to join the Zix Corp. team"(Business Wire)

 80 01/27/2004 2.98% 0.74

Zix Corp mentioned in CBS Marketwatch article stating that "Zix is another stock that has 

a significant short position. About 24 percent of its outstanding shares are held in a 

short position. Shares have soared from $6.50 to $17 in just one month. This stock 

appears to be trading more on short-covering then fundamentals." (LexisNexis - CBS 

Marketwatch)

10 of 20

App. 41

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 41 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

 81 02/02/2004 8.39% 2.03

Zix Corporation acquires the assets and business of MyDocOnline(Business Wire 

01.30.04) 

 82 02/04/2004 -15.42% -4.20

Zix Corporation announced financial results for the fourth quarter ended December 31, 

2003. Zix Corp. recorded a fourth quarter, 2003 net loss of $8.2M, or 29¢ per share, 

compared to a net loss of 39¢ per share, for the corresponding quarter of 2002. 

Revenues were $2.0M in the fourth quarter of 2003, an increase of 266% compared to 

$546,000 in the fourth quarter of 2002. Cash and marketable securities balances as of 

December 31, 2003 were $13.9M(Business Wire 02.03.04)

 83 02/06/2004 4.64% 1.14 Pacific Exchange to trade Zix Corp. options February 9(Dow Jones News Service)

 84 02/17/2004 -0.59% -0.15

Zix Corporation announced that Hunterdon Healthcare System, a nonprofit organization 

based in Flemington, New Jersey, has selected Zix Corp. as its secure e-messaging 

provider by signing a 3-year contract. The company will secure incoming and outgoing 

emails containing Protected Health Information (PHI) to meet the email security 

guidelines of the Health Insurance Portability and Accountability Act of 1996 

(HIPAA)(Business Wire)

 85 02/19/2004 -6.46% -1.68 Zix Corporation introduces personal financial lexicon for ZixVPM(Business Wire)

 86 02/20/2004 1.60% 0.40

Zix Corporation announced that Geisinger Health System, one of the largest healthcare 

providers in Pennsylvania, has signed a 3-year contract for secure e-mail 

services(Bloomberg)

 87 02/24/2004 9.26% 2.23

Zix Corporation announced the availability of Message Inspector 4.3, the latest version of 

its spam and email filtering solution(Business Wire)

 88 03/02/2004 7.53% 1.83

Zix Corporation selected by Mercy Health System of Southeastern Pennsylvania for 

secure e-messaging services(Business Wire)

 89 03/03/2004 -4.29% -1.11

Zix Corporation was rated new "hold" in new coverage by analyst Gary R. Craft at Soleil 

Securities. The 12-month price target is $12.50 per share(Bloomberg)

 90 03/10/2004 0.24% 0.06

Rodman & Renshaw initiated coverage on Zix Corp. with a market 

outperform/speculative risk rating and a 12-month price target of $16.00. "We believe 

that ZIXI is capitalizing on its penetration of the health care vertical with solutions such 

as anti-spam, content filtering, and secure messaging to become an applications service 

provider in the emerging Internet healthcare market with services such as eprescriptions"(Analyst Report)

 91 03/16/2004 -0.19% -0.05

Zix Corporation announced that Texas-based CHRISTUS Health, one of the largest 

Catholic health systems in the country with more than 40 hospitals and long-term care 

facilities in more than 70 cities, has selected Zix Corp. to meet its secure e-messaging 

needs(Bloomberg)

 92 03/18/2004 -8.90% -2.35

Zix Corp. was downgraded to "sell" from "hold" by analyst Gary R. Craft at Soleil 

Securities. The price target is $8.50 per share(Bloomberg)

 93 03/23/2004 5.50% 1.35

Zix Corporation selected by Universal Health Services with 3-year contract for emessaging services(Business Wire)

11 of 20

App. 42

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 42 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

 94 04/01/2004 4.09% 1.01

Zix Corporation announced the following appointments: Brad Almond has been 

promoted to the position of Vice President Finance and Administration and Chief 

Financial Officer; Daniel Sands, M.D., has joined Zix Corp. as Vice President and Chief 

Medical Officer(Business Wire)

 95 04/06/2004 2.70% 0.67

Zix Corporation selected by First Indiana Bank for secure e-messaging 

services(Business Wire)

 96 04/12/2004 6.76% 1.65

Zix Corp mentioned in a CBS Marketwatch column by Herb Greenberg stating that it's a 

popular short for some of his best sources and that he wrote,"I started mentioning it 

positively around $9 because of its potential for its e-prescription business; it's now 

trading above $16. Zix is vying for a piece of the business with a dozen or so other 

companies, but it's believed to be well ahead of the pack." (LexisNexis - CBS 

Marketwatch)

 97 04/19/2004 3.44% 0.85

Zix Corporation announced that it has formed a strategic alliance with Phoenix 

Healthcare Management Services on behalf of VHA Georgia and its member 

organizations(Bloomberg)

 98 04/30/2004 -6.23% -1.62

Zix Corporation selected by Microsoft and WellPoint for e-prescribing initiative(Business 

Wire)

 99 05/03/2004 -3.91% -1.00

Zix Corporation mentioned in a CBS Marketwatch column by Herb Greenberg stating 

that it was interesting that the company waited until late Friday to issue a press release 

regarding Wellpoint and Microsoft. Additionally, the column's positive spin surrounds the 

potential revenue from the e-prescription business that should start showing up in its 

numbers in a meaningful way in another quarter or two(Lexis Nexis - CBS Marketwatch)

100 05/04/2004 -6.55% -1.71

Rodman & Renshaw expects Zix Corporation to report $2.95M in revenue and a net loss 

per share of (33¢). "While we note the top line is progressing with our estimates, we are 

looking for improvement in gross and operating margins as the company makes 

progress in its integration of MyDocOnline and Elron Software"(Analyst Report)

101 05/05/2004 -15.40% -4.22

Zix reports 1Q revenues of $2.8M, below the FC mean of $3M. Net loss, ex items, was 

30¢ per share, 3¢ wider than the Street view. For 2Q, the company expects revenue in 

the range of $3.4 to $3.8M, vs. the FC mean of $4M(MidnightTrader 05.04.04); Zix 

Corporation is selected by Barnes-Jewish Hospital for laboratory connectivity 

services(Business Wire); Rodman & Renshaw has changed their revenue estimate on 

Zix Corporation to $18.6M from $22.6M. They also cut their EPS estimate for 2004 to a 

loss of $(1.07) from (88¢) based on reported 1Q04 earnings(Analyst Report)

102 05/06/2004 -21.16% -5.97

Herb Greenberg article "Can Zix find the right prescription?"(LexisNexis - CBS 

Marketwatch); TheSheet.com stated that investors continued their assult on Zix after 

reporting weaker-than-expected earnings(LexisNexis - TheStreet.com)

12 of 20

App. 43

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 43 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

103 05/11/2004 -1.20% -0.30

Zix Corporation announced that Message Inspector(TM), its anti-spam and email content 

filtering product, is now available as a Linux-based appliance(Bloomberg 05.10.04); Zix 

Corporation and GNYHA Ventures, Inc., a subsidiary of Greater New York Hospital 

Association, announced today that Zix Corp. will be its preferred vendor for secure emessaging solutions(Bloomberg)

104 05/14/2004 -8.12% -2.13

CBS mentionned that Marc Cuban was exiting his short position in Zix Corp because Mr. 

Cuban said he no longer had the time to do the research required to track the stock. In 

addition he said " When I asked myself whether I was the informed investor at the table 

or the sucker, I could't with confidence say i wasn't the sucker"(CBS Market Watch)

105 05/25/2004 4.65% 1.14

Zix Corporation secures a $3.1M PocketScript e-prescribing order. A customer doubles 

their financial commitment for e-prescribing initiative(Business Wire)

106 05/26/2004 -1.61% -0.41

Rodman & Renshaw wrote, "We anticipate increased operating expenses as ZIXI adds 

technicians and account reps to bolster e-prescribe adoption. We have changed our 

2004 operating expenses estimate to $41.8M from $40.3M. Our EPS estimate is now 

($1.12) compared to ($1.07) earlier. Our 2005 EPS estimate is now 10¢ (20¢ 

earlier)"(Analyst Report)

107 06/07/2004 1.00% 0.25

Zix Corporation announced it has completed its first full-year American Institute of 

Certified Public Accountants (AICPA) SysTrust certification audit of the ZixSecure 

Center, the world-class data center that handles operations for Zix Corp. 

services(Bloomberg)

108 06/08/2004 2.13% 0.53

Zix Corporation announced that Thrivent Financial for Lutherans, a Fortune 500 financial 

services organization, has signed a 1 year contract for Zix Corp.'s fully hosted anti-spam, 

anti-virus, and content filtering services. Thrivent selected Zix Corp.'s Message 

Inspector(TM) as an outsourced service to help reduce spam and prevent virus attacks 

to its 7,200 users(Business Wire)

109 06/15/2004 -0.30% -0.08

Zix Corporation announced that Boston-based Caritas Christi Health Care System, New 

England's second largest healthcare system, has signed a 3-year contract to deploy Zix 

Corp.'s PocketScript e-prescribing technology to an initial 960 physicians(Bloomberg 

06.14.04); Zix Corporation announced that SureScripts, a private company founded by 

the National Association of Chain Drug Stores and the National Community Pharmacists 

Association, signed an agreement to connect Zix Corp.'s PocketScript(TM) e-prescribing 

system to its SureScripts Messenger(TM) Services, the largest national e-prescribing 

network to link physician office applications and pharmacy management 

software(Bloomberg)

110 06/16/2004 6.43% 1.57

Zix Corporation is awarded an US patent for a secure message forwarding system. The 

company also announces a stock option grant(Business Wire) 

111 06/22/2004 2.02% 0.50

Thomson Corp. subsidiary Thomson PDR has struck an agreement with Zix Corporation 

to integrate prescription drug briefs derived from Physicians Desk Reference into the Zix 

Corp. e-prescribing solution, PocketScript(Canada Stockwatch)

13 of 20

App. 44

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 44 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

112 06/23/2004 -1.21% -0.31

Zix Corporation engaged Deloitte & Touche LLP as its independent registered public 

accounting firm to audit the company’s financial statements for the current year, subject 

to Deloitte & Touche’s satisfactory completion of its new client acceptance procedures. 

On June 16, 2004, the company also notified Ernst & Young LLP, its independent 

auditors for the year ended December 31, 2003 and previous years, of its election to 

dismiss Ernst & Young as the company’s independent auditors. The foregoing has been 

approved by the Audit Committee of the company’s Board of Directors(Knobias)

113 06/28/2004 -6.30% -1.64 Zix Corporation joins Russell 3000 Index(Business Wire)

114 07/08/2004 -10.47% -2.77

Zix Corporation announced that it has been granted patent 6,760,752 for a secure 

transmission system used in its ZixMail(R), ZixVPM(R), and ZixPort(R) email encryption 

services. The patented system incorporates many innovations that make sending and 

receiving encrypted email easy. These innovations include real time public key retrieval, 

"transaction certificates," and sending encrypted messages using a non-SMTP protocol 

through a forwarding server(Knobias)

115 07/12/2004 -6.39% -1.65

George Weaver Haywood, Beneficial Owner, acquires 106,430 on 03.22.04 of Zix 

common stock(Bloomberg 07.09.04)

116 07/14/2004 0.02% 0.01 Zix Corporation awarded contract with Fortune 150 Financial(Bloomberg)

117 07/20/2004 4.85% 1.19

Rodman & Renshaw lowered their 2Q04 revenue estimates for Zix Corporation to $3.4M 

from $3.8M based upon our belief that ZIXI's sales pipeline was affected by the recent 

slowdown in large enterprise IT spending(Analyst Report)

118 07/26/2004 -8.15% -2.14

Zix Corporation announced it has formed a Content Policies Advisory Board to oversee 

its PocketScript(TM), MyDocOnline(TM), and Dr. Chart(R) care delivery 

applications(Business Wire)

119 08/03/2004 -5.17% -1.33

Zix Corporation announced that Baycare Health Partners Inc. will support the adoption of 

Zix Corp.'s PocketScript(TM) e-prescribing technology offered through the eRx 

Collaborative, a program founded by Blue Cross Blue Shield of Massachusetts and Tufts 

Health Plan(Business Wire)

120 08/06/2004 -0.54% -0.14

Zix Corporation says it had 2Q revenues of $3.5M, just below the FC mean of $4M. It 

said it lost 31¢ per share, compared to the FC mean for a 30¢ loss. 3Q revenues are 

seen between $4 and $4.4M versus the FC mean for $5M. ZIXI says it will be restating 

financial statements for 1Q solely to change certain accounting relating to the acquisition 

of the assets of MyDocOnline on January 30. The adjustment is being made to add 

certain liabilities of approximately $5.3M incurred in association with the acquisition, 

which will result in a corresponding increase primarily in the value of the assets acquired 

including goodwill. As a consequence, the net loss of the company in the first quarter of 

$10.7M will be increased by $264,000(MidnightTrader 08.05.04); Rodman & Renshaw 

lowered their price target for ZIXI from $16 to $8 due to (i) recent volatility and macroeconomic events which have decreased sector valuation, (ii) weak enterprise IT 

spending and (iii) their lower 2005 revenue estimate of $41.3M (down from 

$57M)(Analyst Report)

14 of 20

App. 45

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 45 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

121 08/09/2004 -6.16% -1.59

Zix Corporation selected by New York Bankers Service Corporation as an endorsed 

vendor(Business Wire)

122 08/25/2004 13.26% 3.13

Zix Corporation recognized on Dallas-Fort Worth Top 50 Fastest Growing Technology 

Companies List(Business Wire)

123 09/07/2004 3.52% 0.87

Zix Corporation learned, by means of a press release issued September 3, 2004, of the 

filing of a putative class action lawsuit in the US District Court for the Northern District of 

Texas against Zix Corp. and certain of its current and former officers. The suit, which 

has not yet been served, alleges that defendants made false and misleading statements 

and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act 

of 1934. The suit seeks unspecified damages on behalf of a purported class of 

purchasers of the Zix Corp. common stock during the period from October 30, 2003 to 

May 4, 2004. Zix Corp. believes that the allegations are without merit and plans to 

defend the action vigorously(Business Wire 09.06.04); Zix Corporation announced that 

University Hospitals Health System, a Cleveland-based regional healthcare delivery 

system, with 8 wholly owned hospitals and 4 partner hospitals, has signed a 5-year 

contract naming Zix Corp. as its email security provider(Bloomberg)

124 09/08/2004 -3.13% -0.80

Zix Corporation announced that Ardent Health Services LLC (Ardent), a Nashville-based 

healthcare operator with 35 hospitals in 14 states, has selected Zix Corp. as its secure 

email solution. Ardent joins other Nashville-area healthcare organizations that have 

chosen Zix Corp. to meet the security regulations of the Health Insurance Portability and 

Accountability Act of 1996 (HIPAA), including Vangard Health Systems and Iasis 

Healthcare(Business Wire)

125 09/14/2004 -2.20% -0.56

Zix Corporation announced that The Valley Hospital (Valley), a 451-bed fully accredited 

nonprofit hospital in Ridgewood, New Jersey, has selected Zix Corp.'s Dr. Chart service 

to provide laboratory client connectivity(Bloomberg)

126 09/27/2004 0.87% 0.22

Zix Corporation announced that Kaleida Health, the largest healthcare system in western 

New York, has signed a 3-year contract for Zix Corp. secure e-messaging services to 

help meet the security guidelines of the Health Insurance Portability and Accountability 

Act of 1996 (HIPAA)(Bloomberg)

127 09/29/2004 0.52% 0.13

Zix Corporation announced that Piedmont Medical Laboratory, a Virginia-based facility 

serving a 17-county service region, has signed a 3-year contract for Zix Corp.'s Dr. 

Chart(R) service to provide laboratory client connectivity(Bloomberg)

128 10/04/2004 5.50% 1.35

Zix Corporation announced that its PocketScript(R) e-prescribing application is being 

used by physicians to notify patients taking the anti-inflammatory drug Vioxx (Rofecoxib) 

about the drug's recent recall status(Business Wire) 

129 10/05/2004 -0.59% -0.15

Zix Corporation announced that the Office of the Comptroller of the Currency (OCC), a 

bureau of the US Department of the Treasury, has signed a renewal contract for secure 

e-messaging(Bloomberg)

130 10/06/2004 14.95% 3.51

Zix Corporation ranks third on Texas Top 50 Fastest Growing Tech Companies. The 

company ranks third in revenue growth for a 5-year period(Business Wire)

15 of 20

App. 46

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 46 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

131 10/12/2004 10.20% 2.45

Zix Corporation is selected by Memorial Hermann Healthcare System with 3-year 

contract for secure e-messaging services(Business Wire) 

132 10/19/2004 -3.69% -0.95

Zix Corporation announced that an add-on S/MIME (Secure Multipurpose Internet Mail 

Extensions) feature of ZixVPM(R) (Virtual Private Messenger) has met the conformance 

requirements of The Open Group's S/MIME Gateway Product Standard(Bloomberg)

133 10/25/2004 -3.14% -0.80

Zix Corporation announced the availability of the latest version of its Web filtering 

solution, Web Inspector(R) 7.1(Bloomberg)

134 10/26/2004 1.79% 0.45

Zix Corporation announced that Wake Forest University Baptist Medical Center (Wake 

Forest Baptist) has signed a contract naming Zix Corp. as its secure email 

solution(Bloomberg)

135 10/27/2004 2.87% 0.71

Zix Corporation develops and deploys technology for Massachusetts Health Data 

Consortium MedsInfo-ED Project(Business Wire)

136 11/02/2004 -8.85% -2.34 Zix Corporation completes $20M private placement(Business Wire)

137 11/05/2004 -8.34% -2.19

Zix Corporation announced financial results for the third quarter ended September 30, 

2004. Zix Corp. recorded third quarter revenues of $3.9M, an increase of 74% 

compared to $2.2M in the third quarter of 2003. Zix Corp. recorded a third quarter 2004 

net loss of $10.7M, or 33¢ per share, compared to a net loss of $6.5M, or 29¢ per share, 

for the corresponding quarter of 2003. Cash and marketable securities balances as of 

September 30, 2004, were $ 18.4M. The company received new orders of $4.1M in the 

quarter compared to $3.7M in the third quarter of 2003. "Our focus for Zix Corp. 

continues in our 2 core markets: e-prescribing and secure e-messaging. We have 

gained tremendous market leadership and believe these 2 areas will lead us to positive 

operating cash flows and, ultimately, profitability," said John A. Ryan, Chairman and 

Chief Executive Officer for Zix Corp. "We had another very successful quarter in our 

Care Delivery business, signing PocketScript end-user licensing agreements for more 

than 1,800 new prescribers and deploying 1,162 physicians with a fully functioning and 

138 11/08/2004 0.70% 0.18

Zix Corporation announced that Suffolk County National Bank (SCNB), the second 

largest independent bank headquartered on Long Island, has signed a 3-year contract 

for Zix Corp.'s services(Bloomberg)

139 11/09/2004 0.92% 0.23

Zix Corporation announced that 2 third-party administrators -- Group & Pension 

Administrators, Inc. (GPA) of Richardson, Texas, and Pittman & Associates, Inc. of 

Memphis, Tennessee -- have selected Zix Corp. services to meet their communication 

protection needs(Bloomberg)

140 11/10/2004 6.29% 1.54

Zix Corporation is selected by Stormont-Vail HealthCare for e-messaging 

security(Business Wire)

16 of 20

App. 47

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 47 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

141 11/15/2004 -0.80% -0.20

Zix Corporation announced that Sullivan County Government Center and Madison 

County have chosen Zix Corp. solutions to protect their networks from spam and 

unauthorized Internet use(Bloomberg); Rodman & Renshaw wrote, " ZIXI expects 4Q04 

revenues in the $3.9 - $4.3M range and full year revenues in the $14 - $14.5M range. 

The company expects doctor deployments to range between 800-1000. We note that 

many doctors tend to be away during the holiday season and that could make eprescribe deployment goals for 4Q04 challenging, in our view. However, we believe 

deployments should exceed 1,000 a quarter during 2005"(Analyst Report); Zix 

Corporation announced that Sullivan County Government Cneter and Madison County 

have chosen ZixCorp's solution to protect their networks from spam and unauthorized 

internet use (Business Wire Inc - Lexis Nexis)

142 11/29/2004 6.29% 1.54

Zix Corporation is selected by Ecom for secure e-messaging services. PPO 

Management Company signs 3-year contract for ZixVPM system-wide email 

protection(Business Wire) 

143 11/30/2004 -1.87% -0.48

Zix Corporation announced that Children's Hospital in Omaha, Nebraska, has chosen 

Zix Corp. solutions to meet the secure email regulation of the Health Insurance 

Portability and Accountability Act of 1996 (HIPAA)(Bloomberg)

144 12/06/2004 4.77% 1.17

Zix Corporation announced it is providing PocketScript(R) e-prescribing to the Boston 

Health Care for the Homeless Program (BHCHP) in a 1-year trial outreach initiative 

through the eRx Collaborative(Bloomberg)

145 12/08/2004 -0.07% -0.02

Zix Corporation announced that Temple University Health System (TUHS), a 

Philadelphia-based system with a range of academic and community-based services, 

has selected Zix Corp. for system-wide communications protection services(Bloomberg)

146 12/13/2004 0.38% 0.10

Zix Corporation announced that Berkshire Health Systems (BHS), a private, not-for-profit 

system that serves as the preeminent provider of healthcare services to Berkshire 

County and surrounding communities in Massachusetts, has selected Zix Corp. solutions 

for system-wide email protection(Bloomberg)

147 12/14/2004 -1.02% -0.26

Zix Corporation announced 4 regional healthcare organizations that have recently 

chosen Zix Corp. as their secure email provider(Bloomberg)

148 12/15/2004 -2.95% -0.75 George Weaver Haywood, Beneficial Owner, sells 229,500(Bloomberg 12.14.04)

149 12/27/2004 5.11% 1.26 George Weaver Haywood, Beneficial Owner, sells 317,000(Bloomberg 12.23.04)

150 01/04/2005 -0.74% -0.19

Zix Corporation announced that MultiPlan, Inc., one of the oldest and largest healthcare 

networks in the country, has renewed and expanded its current contract for Zix Corp. 

communications protection solutions(Bloomberg)

17 of 20

App. 48

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 48 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

151 01/10/2005 -2.77% -0.71

Zix Corporation announced that the Office of Thrift Supervision (OTS), a bureau of the 

US Department of the Treasury, has signed a renewal contract for secure emessaging(Bloomberg); Zix Corporation has signed contracts with 2200 doctors, 

including 650 at Lahey Clinic in Burlington and 700 at Caritas Christi Health care, to use 

the company's e-prescribing systme, executives said (The Boston Glob -Lexis Nexis)

152 01/14/2005 3.12% 0.77

Rodman & Renshaw believe that e-prescribe is a market with considerable growth 

opportunities and longevity and ZIXI has the technological infrastructure and mind share 

to become a market leader(Analyst Report)

153 01/18/2005 1.10% 0.28

Zix Corporation announced that Focus Diagnostics, Inc. has signed a 3-year contract for 

Zix Corp.'s Dr. Chart online order entry and results reporting services(Bloomberg)

154 01/24/2005 -4.39% -1.13

Zix Corporation's service contract is renewed for Blue Cross of Northeastern 

Pennsylvania(Business Wire)

155 02/03/2005 -1.35% -0.34 Zix Corp. applauds the president's push for healthcare IT(Bloomberg)

156 02/07/2005 4.10% 1.01

Zix Corporation announced the availability of its new ZixMail Executive(TM) 

package(Bloomberg)

157 02/08/2005 1.19% 0.30

Rodman & Renshaw forecasted total revenue of $4.1M (7% sequential growth) and a net 

loss per share of (28¢), while consensus estimates are $4.1M and (29¢) 

respectively(Analyst Report)

158 02/09/2005 -12.66% -3.40

Zix Corporation announces fourth quarter and year-end 2004 financial results. Zix says 

4Q revenues rose to $3.9M but was just shy of the FC mean for $4M. It lost 32¢ per 

share, more than the FC mean estimate for a 29¢ loss. It also said its Chairman and 

CEO is resigning his CEO position. Effective immediately, the COO and President will 

also assume the role of acting CEO(Business Wire 02.08.05); Zix Corporation gains a 

contract with Tenet for secure e-messaging(Business Wire); Zix Corporation was 

downgraded to "market perform" from "market outperform" by analyst Edward Ching at 

Rodman & Renshaw based on uncertainty in the near-term outlook for e-prescription, 

given the end of Wellpoint e-prescribe initiative(Analyst Report); Zix Corporation 

announced that it has signed a three-year contract with Tenet Healthcare Corporation to 

provide secure e-messaging (Business Wire -Lexis Nexis)

159 02/10/2005 -0.62% -0.16

Zix Corporation announced the integration of its PocketScript e-prescribing application 

with MedAptus' electronic charge capture solution(Bloomberg)

160 02/14/2005 1.68% 0.42

Zix Corporation announced it has been selected to participate in the Georgia Hospital 

Health Services' (GHHS) HIPAA Security Vendor Alliance(Bloomberg)

161 02/15/2005 -3.00% -0.77

Zix Corporation announced that the University of Medicine & Dentistry of New Jersey 

(UMDNJ), the nation's largest public university of health sciences, selected Zix Corp.'s 

ZixVPM(R) (Virtual Private Messenger) service for system-wide communications 

protection(Bloomberg)

18 of 20

App. 49

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 49 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

162 02/22/2005 -3.33% -0.85

Zix Corporation announced that Deaconess Health System based in Evansville, Indiana, 

has selected Zix Corp. for system-wide communications protection services(Bloomberg)

163 02/28/2005 3.59% 0.89

Zix Corporation announced the availability of the latest version of its enterprise-wide 

email encryption solution, ZixVPM(R) (Virtual Private Messenger)(Bloomberg)

164 03/01/2005 -0.61% -0.15

Zix Corporation announced that Sierra Health Services, Inc. has selected Zix Corp.'s 

ZixVPM(R) (Virtual Private Messenger) and ZixPort(R) solutions for system-wide email 

protection(Bloomberg)

165 03/07/2005 2.74% 0.68

Zix Corporation announced that Wilber National Bank has signed a 3-year contract for 

Zix Corp.'s services(Bloomberg)

166 03/08/2005 9.04% 2.18

Zix Corporation announced that 3 regional healthcare organizations have recently 

chosen Zix Corp. as their secure email provider. Dallas Nephrology Associates (DNA), 

Southern Ocean County Hospital, and Community Memorial Hospital of San 

Buenaventura(Business Wire)

167 03/09/2005 -2.93% -0.75

Zix Corporation announced that Triumph HealthCare, a Houston-based long-term acute 

care hospital company, has signed a 3-year contract for ZixVPM(R) (Virtual Private 

Messenger) for system-wide email encryption(Bloomberg)

168 03/14/2005 -3.86% -0.99

Zix Corporation announced that it has sold its Message Inspector(R) and Web 

Inspector(R) products to CyberGuard Corporation in a transaction valued at $4.0M, 

comprised of $2.1M in cash paid at closing, a promissory note of $1.5M payable during 

2005, and accounts receivable of approximately $0.4M being retained by Zix 

Corp.(Business Wire)

169 03/15/2005 -0.17% -0.04

Zix Corporation announced that Ohio-based Liberty Savings Bank has signed a 3-year 

contract for Zix Corp.'s ZixVPM(R) (Virtual Private Messenger), ZixMail(R), and 

ZixPort(R) email protection services(Bloomberg); Rodman & Renshaw wrote, "ZIXI now 

expects 1Q05 revenues to range between $3.3 - $3.5M, down from its previous 

guidance of $3.7 - $4.0M. In our view, the revenue shortfall can be entirely attributed to 

the product divesture, as we believe the secure messaging side of the business is doing 

well. We have adjusted our estimates to reflect new management guidance. For 1Q05, 

we expect revenues of $3.4M"(Analyst Report)

170 03/17/2005 6.99% 1.70

Zix Corporation announced that it has filed Form 12b-25 with the SEC for an automatic 

15-day extension to file its Annual Report on Form 10-K for the year ended December 

31, 2004(Business Wire 03.16.05)

171 03/28/2005 2.54% 0.63

Zix Corporation announced that acting Chief Executive Officer Rick Spurr has been 

appointed CEO(Bloomberg)

172 03/31/2005 -5.51% -1.42

AirLogix, the most experienced and trusted leader in respiratory disease management, 

announced a 3-year agreement with Zix Corporation(PR Newswire) 

173 04/01/2005 -10.04% -2.67

Zix Corporation announced that St. Peters' Health care Services, a New York nonprofit 

healthcare system based in Albany, has signed a three-year contract for ZixCorp 

services (Business Wire - Lexis Nexis 03.30.2005)

19 of 20

App. 50

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 50 of 128
Exhibit B Event Study Summary ZIX CORPORATION

Regression analysis - 10/30/2002 - 05/04/2005

Regression Window 1 Day T-statistic

Effect Description

174 04/04/2005 -4.00% -1.03

Zix Corporation announced that Eastern Connecticut Health Network (ECHN), the 

nonprofit parent company of 2 acute-care community hospitals, Manchester Memorial 

Hospital and Rockville General Hospital, has signed a 3-year contract for the full suite of 

Zix Corp.'s email protection services(Bloomberg); 

175 04/06/2005 10.75% 2.57

Zix Corporation announced it has successfully passed the industry's first payor-driven eprescribing utilization study. This study, specified by Blue Cross Blue Shield of 

Massachusetts (BCBSMA), was designed to ensure continued utilization of physicians 

sponsored by the eRx Collaborative(Business Wire); Zix Corporation announced that 3 

regional healthcare organizations have recently chosen Zix Corp. as their secure email 

provider: STAR Anesthesia, P.A., Community Medical Center of Scranton, Pennsylvania, 

and The Charlotte Hungerford Hospital(Business Wire); Highlights of rising and falling 

U.S. stocks.Zix Corp shares jumped more than 10% after the company said its 

electronic prescription system successfully met the requirements of a utilization study it 

completed with the BCBSMA.(MarketWatch); 

176 04/12/2005 5.48% 1.34

Zix Corporation announced that South Shore Medical Center, a multi-specialty private 

practice with locations in Norwell and Kingston Massachusetts, has signed a contract to 

deploy Zix Corp.'s PocketScript(R) e-prescribing technology to its 48 

prescribers(Business Wire)

177 04/14/2005 -7.37% -1.93

Zix Corporation has entered into definitive agreements with the holders of its $20M 

convertible notes (due 2005 - 2008 as originally issued by the company in November 

2004). These definitive agreements relate to the previously announced changes to 

certain terms of the convertible notes and related warrants(Business Wire 04.13.05); Zix 

Corp to redeem $10M of senior convertible notes.(MarketWatch 04.13.2005)

178 04/20/2005 -1.54% -0.39

Zix Corporation announced that 3 healthcare organizations have recently chosen 

ZixVPM (Virtual Private Messenger) as their secure email solution: AirLogix, Charlotte 

Radiology, and Langlade Memorial Hospital(Bloomberg)

179 04/25/2005 4.54% 1.12

Zix Corporation announced that Sumter Regional Hospital, a leading employer in 

southwest Georgia, has signed a 3-year contract for Zix Corp.'s ZixVPM(R) (Virtual 

Private Messenger) and ZixPort(R) secure email solutions(Bloomberg)

180 04/26/2005 0.93% 0.23

Zix Corporation announced that Northeast Georgia Health System has renewed its 3-

year contract for the Dr. Chart(R) online order entry and results reporting 

service(Bloomberg)

20 of 20

App. 51

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 51 of 128
EXHIBIT C

App. 52

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 52 of 128
S6INFT

Date Px High Px Low Px Open Px Last Px Volume Px Last

10/30/2002 4.63 4.07 4.41 4.07 304,412.00 113.39

10/31/2002 4.20 3.90 4.20 4.05 182,700.00 113.64

11/1/2002 4.24 3.89 3.99 4.18 292,400.00 117.54

11/4/2002 4.25 4.00 4.24 4.14 182,600.00 121.95

11/5/2002 4.08 3.95 4.08 4.00 63,500.00 121.34

11/6/2002 4.05 3.86 4.00 4.00 89,561.00 124.41

11/7/2002 4.15 3.95 4.10 4.14 74,300.00 120.31

11/8/2002 4.15 3.90 4.15 3.92 31,300.00 118.77

11/11/2002 3.97 3.85 3.92 3.91 40,178.00 113.20

11/12/2002 4.00 3.86 3.92 3.86 40,100.00 116.26

11/13/2002 4.02 3.82 4.02 3.89 26,550.00 117.64

11/14/2002 3.89 3.75 3.89 3.84 54,600.00 122.81

11/15/2002 3.94 3.72 3.75 3.85 52,974.00 122.55

11/18/2002 3.91 3.71 3.86 3.80 66,700.00 122.24

11/19/2002 3.82 3.60 3.63 3.74 63,751.00 120.75

11/20/2002 4.00 3.60 3.74 3.67 72,800.00 125.16

11/21/2002 3.94 3.67 3.70 3.89 99,394.00 131.17

11/22/2002 4.04 3.81 3.90 3.99 116,100.00 132.04

11/25/2002 4.05 3.96 4.01 4.00 191,500.00 135.22

11/26/2002 4.09 3.92 4.01 4.00 257,200.00 132.02

11/27/2002 4.04 3.95 3.98 4.00 242,303.00 136.82

11/29/2002 4.10 3.88 4.09 3.88 718,450.00 134.67

12/2/2002 4.04 3.90 3.90 3.93 542,860.00 136.52

12/3/2002 4.04 3.95 4.00 4.00 201,400.00 132.49

12/4/2002 4.49 3.95 4.00 4.35 291,845.00 128.07

12/5/2002 4.47 4.15 4.42 4.22 168,500.00 126.31

12/6/2002 4.52 4.20 4.21 4.52 140,016.00 126.52

12/9/2002 5.15 4.49 4.49 5.00 412,614.00 120.63

12/10/2002 5.45 4.78 5.32 5.00 222,380.00 124.46

12/11/2002 5.09 4.81 5.00 4.85 108,509.00 123.86

12/12/2002 5.44 4.76 4.76 5.25 400,600.00 124.70

12/13/2002 5.60 5.20 5.32 5.51 351,000.00 121.42

12/16/2002 5.80 5.25 5.65 5.29 253,719.00 124.52

12/17/2002 5.30 4.96 5.29 5.03 202,264.00 123.42

12/18/2002 5.03 4.55 5.03 5.00 505,489.00 119.48

12/19/2002 4.99 4.55 4.85 4.67 122,154.00 118.39

12/20/2002 4.85 4.55 4.60 4.66 132,850.00 119.24

12/23/2002 5.10 4.56 4.57 4.98 166,000.00 120.62

12/24/2002 4.94 4.69 4.78 4.72 49,800.00 119.93

12/26/2002 4.89 4.65 4.70 4.75 101,200.00 120.44

12/27/2002 4.75 4.60 4.65 4.68 105,893.00 119.41

12/30/2002 4.70 4.50 4.56 4.51 103,681.00 118.39

12/31/2002 4.58 4.40 4.50 4.41 118,554.00 118.87

1/2/2003 4.59 4.12 4.49 4.18 152,016.00 123.38

1/3/2003 4.35 4.10 4.20 4.29 138,500.00 123.24

1/6/2003 4.41 4.21 4.24 4.28 164,800.00 127.04

1/7/2003 4.50 4.26 4.26 4.39 108,295.00 126.88

1/8/2003 4.74 4.36 4.37 4.50 91,900.00 124.39

ZIX

EXHIBIT 'C'

Zix Corporation Trade Information and S&P 600 INFO TECH INDEX

Page 1

App. 53

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 53 of 128
S6INFT

Date Px High Px Low Px Open Px Last Px Volume Px Last

ZIX

1/9/2003 4.75 4.41 4.41 4.65 93,000.00 127.85

1/10/2003 4.71 4.54 4.66 4.55 87,600.00 129.29

1/13/2003 4.74 4.56 4.57 4.67 70,464.00 129.06

1/14/2003 5.08 4.65 4.90 4.88 231,950.00 129.82

1/15/2003 5.05 4.85 4.88 4.97 113,900.00 128.34

1/16/2003 5.13 4.97 4.97 5.02 102,100.00 126.40

1/17/2003 5.05 4.73 5.05 4.89 145,050.00 122.40

1/21/2003 4.95 4.63 4.94 4.69 139,600.00 120.83

1/22/2003 4.77 4.25 4.77 4.38 212,568.00 121.25

1/23/2003 4.57 4.24 4.55 4.30 65,200.00 123.31

1/24/2003 4.42 4.11 4.42 4.12 74,100.00 120.08

1/27/2003 4.24 3.98 4.10 4.21 114,069.00 117.93

1/28/2003 4.30 4.05 4.14 4.30 47,900.00 119.15

1/29/2003 4.31 4.09 4.31 4.13 50,515.00 120.48

1/30/2003 4.25 4.05 4.24 4.09 52,400.00 117.56

1/31/2003 4.19 4.04 4.10 4.19 57,675.00 118.32

2/3/2003 4.45 4.10 4.15 4.29 124,600.00 117.89

2/4/2003 4.34 4.11 4.16 4.23 41,100.00 117.77

2/5/2003 4.31 4.15 4.31 4.24 45,200.00 117.66

2/6/2003 4.35 4.18 4.32 4.29 59,300.00 116.77

2/7/2003 4.46 4.20 4.20 4.31 107,541.00 114.13

2/10/2003 4.65 4.34 4.35 4.65 60,400.00 115.57

2/11/2003 4.85 4.52 4.68 4.54 60,291.00 115.22

2/12/2003 4.55 4.26 4.50 4.27 64,800.00 113.60

2/13/2003 4.25 4.00 4.24 4.04 103,600.00 113.22

2/14/2003 4.10 3.93 4.10 4.00 86,030.00 116.05

2/18/2003 4.28 4.00 4.20 4.16 59,300.00 118.21

2/19/2003 4.14 3.93 4.06 4.09 26,400.00 116.38

2/20/2003 4.23 3.98 4.15 4.10 51,000.00 116.83

2/21/2003 4.57 3.97 3.97 4.57 140,500.00 117.82

2/24/2003 4.69 4.30 4.60 4.65 84,800.00 115.72

2/25/2003 5.01 4.41 4.62 4.43 48,180.00 116.15

2/26/2003 4.55 4.28 4.40 4.28 68,300.00 114.29

2/27/2003 4.75 4.29 4.29 4.62 103,400.00 115.45

2/28/2003 4.88 4.64 4.72 4.75 67,000.00 116.19

3/3/2003 4.85 4.71 4.80 4.73 51,200.00 114.62

3/4/2003 4.84 4.54 4.71 4.63 36,200.00 112.77

3/5/2003 4.83 4.25 4.56 4.31 71,586.00 111.84

3/6/2003 4.37 3.90 3.95 4.27 137,800.00 111.24

3/7/2003 4.39 4.25 4.27 4.30 39,195.00 110.69

3/10/2003 4.50 4.18 4.31 4.21 139,200.00 107.69

3/11/2003 4.38 4.10 4.21 4.34 74,119.00 106.95

3/12/2003 4.45 4.26 4.26 4.37 46,038.00 105.88

3/13/2003 4.50 4.30 4.30 4.39 24,929.00 110.75

3/14/2003 4.50 4.30 4.30 4.38 81,900.00 110.30

3/17/2003 4.55 4.30 4.42 4.50 61,875.00 115.35

3/18/2003 4.55 4.38 4.49 4.51 42,900.00 116.84

3/19/2003 4.55 4.39 4.40 4.50 76,614.00 116.01

3/20/2003 4.50 4.35 4.35 4.48 42,600.00 116.96

3/21/2003 4.60 4.41 4.50 4.50 240,300.00 118.59

Page 2

App. 54

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 54 of 128
S6INFT

Date Px High Px Low Px Open Px Last Px Volume Px Last

ZIX

3/24/2003 4.50 4.38 4.40 4.43 36,200.00 114.83

3/25/2003 4.51 4.39 4.39 4.45 30,950.00 116.25

3/26/2003 4.54 4.45 4.45 4.46 29,200.00 115.39

3/27/2003 4.50 4.38 4.45 4.40 30,400.00 115.48

3/28/2003 4.49 4.32 4.39 4.45 32,900.00 115.03

3/31/2003 4.50 4.29 4.50 4.30 50,700.00 113.25

4/1/2003 4.43 4.24 4.40 4.25 34,614.00 114.23

4/2/2003 4.55 4.26 4.34 4.55 152,100.00 118.05

4/3/2003 4.55 4.43 4.55 4.50 48,700.00 117.89

4/4/2003 4.55 4.47 4.50 4.52 132,600.00 115.70

4/7/2003 4.75 4.45 4.51 4.50 103,400.00 117.44

4/8/2003 4.50 4.36 4.50 4.48 34,099.00 115.48

4/9/2003 4.59 4.37 4.59 4.44 38,500.00 114.08

4/10/2003 4.44 4.34 4.44 4.34 27,200.00 113.52

4/11/2003 4.59 4.23 4.59 4.33 41,100.00 113.26

4/14/2003 4.49 4.22 4.22 4.48 34,800.00 115.88

4/15/2003 4.58 4.33 4.58 4.38 63,558.00 117.19

4/16/2003 4.49 4.23 4.43 4.35 46,435.00 117.63

4/17/2003 4.50 4.21 4.49 4.28 71,900.00 120.08

4/21/2003 4.54 4.20 4.21 4.53 217,400.00 121.81

4/22/2003 4.62 4.45 4.55 4.46 139,010.00 123.56

4/23/2003 4.67 4.30 4.47 4.65 165,325.00 124.46

4/24/2003 5.25 4.56 4.57 5.21 332,814.00 123.56

4/25/2003 5.40 4.45 5.38 4.59 193,700.00 120.22

4/28/2003 4.70 4.49 4.69 4.68 96,060.00 123.06

4/29/2003 4.75 4.58 4.58 4.65 62,275.00 123.84

4/30/2003 5.09 4.63 4.94 4.87 164,750.00 124.77

5/1/2003 5.00 4.83 4.87 4.93 70,500.00 124.39

5/2/2003 5.30 4.93 4.93 5.26 208,800.00 128.14

5/5/2003 5.43 5.15 5.15 5.30 232,659.00 129.44

5/6/2003 5.40 5.15 5.30 5.24 138,900.00 130.45

5/7/2003 5.30 5.12 5.29 5.13 79,900.00 128.93

5/8/2003 5.20 4.85 5.09 5.04 133,000.00 127.53

5/9/2003 5.12 4.90 5.06 5.00 37,300.00 129.80

5/12/2003 5.09 4.85 5.09 4.95 70,400.00 131.72

5/13/2003 4.95 4.85 4.85 4.90 152,900.00 131.56

5/14/2003 5.00 4.84 4.86 5.00 87,545.00 131.55

5/15/2003 5.05 4.91 5.04 4.92 97,500.00 132.47

5/16/2003 5.10 4.86 5.10 4.97 101,530.00 128.85

5/19/2003 5.12 4.90 4.95 4.95 95,550.00 125.94

5/20/2003 4.94 4.69 4.85 4.70 79,000.00 126.34

5/21/2003 5.05 4.65 5.05 4.77 50,200.00 126.28

5/22/2003 5.17 4.74 4.92 4.99 88,537.00 128.04

5/23/2003 4.85 4.61 4.84 4.70 84,250.00 128.41

5/27/2003 4.70 4.57 4.60 4.57 61,350.00 133.30

5/28/2003 4.53 4.08 4.45 4.19 286,215.00 134.98

5/29/2003 4.33 4.12 4.18 4.18 110,900.00 137.12

5/30/2003 4.55 4.25 4.35 4.32 223,226.00 140.81

6/2/2003 4.68 4.33 4.40 4.45 149,770.00 140.99

6/3/2003 4.58 4.35 4.50 4.35 66,400.00 141.25

Page 3

App. 55

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 55 of 128
S6INFT

Date Px High Px Low Px Open Px Last Px Volume Px Last

ZIX

6/4/2003 4.44 4.20 4.25 4.25 103,515.00 144.52

6/5/2003 4.49 4.21 4.37 4.30 135,846.00 146.45

6/6/2003 4.40 4.20 4.38 4.21 160,435.00 145.57

6/9/2003 4.36 4.15 4.30 4.16 99,500.00 141.48

6/10/2003 4.30 4.18 4.18 4.30 44,650.00 142.88

6/11/2003 4.30 4.16 4.30 4.18 59,300.00 143.57

6/12/2003 4.52 4.06 4.18 4.30 329,004.00 144.83

6/13/2003 4.45 4.29 4.42 4.33 53,700.00 141.55

6/16/2003 4.49 4.30 4.33 4.39 69,600.00 144.43

6/17/2003 4.55 4.40 4.40 4.50 151,900.00 146.33

6/18/2003 4.52 4.36 4.41 4.39 77,110.00 147.92

6/19/2003 4.48 4.24 4.31 4.25 125,530.00 145.73

6/20/2003 4.41 4.14 4.28 4.36 120,182.00 144.87

6/23/2003 4.30 4.06 4.30 4.07 153,200.00 140.42

6/24/2003 4.25 4.09 4.11 4.25 69,361.00 140.36

6/25/2003 4.18 3.99 4.15 4.04 112,176.00 140.84

6/26/2003 4.19 3.86 4.04 4.00 515,400.00 143.35

6/27/2003 4.05 3.79 4.00 3.85 162,400.00 143.98

6/30/2003 4.00 3.72 3.84 3.77 119,900.00 143.63

7/1/2003 3.85 3.65 3.72 3.78 202,109.00 144.29

7/2/2003 3.99 3.73 3.81 3.73 81,189.00 149.18

7/3/2003 3.88 3.74 3.75 3.88 40,523.00 147.58

7/7/2003 4.25 3.75 3.85 4.05 434,842.00 152.60

7/8/2003 4.30 4.05 4.12 4.10 212,600.00 157.67

7/9/2003 4.10 3.85 4.07 3.86 168,940.00 159.60

7/10/2003 3.91 3.68 3.90 3.80 130,150.00 156.34

7/11/2003 3.95 3.75 3.80 3.95 44,500.00 157.66

7/14/2003 4.00 3.70 3.95 3.80 116,100.00 160.84

7/15/2003 3.94 3.69 3.76 3.73 116,545.00 161.01

7/16/2003 3.83 3.68 3.74 3.69 77,644.00 158.46

7/17/2003 3.80 3.65 3.67 3.65 56,376.00 151.08

7/18/2003 3.80 3.65 3.79 3.74 14,600.00 152.35

7/21/2003 3.99 3.57 3.98 3.66 107,724.00 149.32

7/22/2003 3.84 3.61 3.65 3.70 71,552.00 153.14

7/23/2003 3.95 3.75 3.82 3.93 108,091.00 154.53

7/24/2003 4.16 3.93 3.95 4.09 203,145.00 154.30

7/25/2003 4.15 3.70 3.95 3.84 105,167.00 155.58

7/28/2003 3.99 3.61 3.86 3.79 120,881.00 158.21

7/29/2003 3.92 3.60 3.92 3.67 58,300.00 157.06

7/30/2003 3.85 3.63 3.63 3.71 118,626.00 154.98

7/31/2003 3.86 3.67 3.70 3.76 80,751.00 155.93

8/1/2003 3.87 3.62 3.87 3.77 147,101.00 154.39

8/4/2003 3.82 3.66 3.71 3.72 35,000.00 154.69

8/5/2003 3.79 3.51 3.70 3.63 78,650.00 151.82

8/6/2003 3.77 3.54 3.54 3.57 19,894.00 149.35

8/7/2003 3.72 3.48 3.70 3.64 103,880.00 147.81

8/8/2003 3.68 3.56 3.56 3.59 68,170.00 146.89

8/11/2003 3.70 3.40 3.70 3.50 157,300.00 149.36

8/12/2003 3.50 3.10 3.50 3.13 272,043.00 152.75

8/13/2003 3.34 3.16 3.19 3.32 161,790.00 154.76

Page 4

App. 56

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 56 of 128
S6INFT

Date Px High Px Low Px Open Px Last Px Volume Px Last

ZIX

8/14/2003 3.44 3.25 3.30 3.39 109,500.00 156.24

8/15/2003 3.58 3.26 3.26 3.58 105,900.00 156.81

8/18/2003 3.67 3.50 3.54 3.60 50,731.00 162.05

8/19/2003 3.60 3.45 3.53 3.52 92,705.00 165.69

8/20/2003 3.59 3.36 3.59 3.36 42,490.00 166.57

8/21/2003 3.49 3.25 3.32 3.45 52,973.00 169.64

8/22/2003 3.45 3.30 3.45 3.39 41,564.00 166.99

8/25/2003 3.40 3.27 3.34 3.39 82,131.00 165.44

8/26/2003 3.42 3.30 3.42 3.40 58,400.00 165.49

8/27/2003 3.38 3.09 3.37 3.36 136,345.00 167.64

8/28/2003 3.54 3.30 3.41 3.52 139,831.00 170.58

8/29/2003 3.66 3.37 3.37 3.65 61,034.00 171.58

9/2/2003 3.85 3.55 3.65 3.84 135,926.00 174.89

9/3/2003 4.02 3.79 3.85 3.94 224,408.00 176.67

9/4/2003 4.74 3.91 4.00 4.55 590,374.00 178.77

9/5/2003 4.75 4.34 4.71 4.45 432,195.00 177.88

9/8/2003 4.59 4.33 4.59 4.37 203,791.00 181.46

9/9/2003 5.00 4.20 4.33 4.91 1,129,486.00 179.80

9/10/2003 5.13 4.62 5.00 4.86 293,193.00 172.69

9/11/2003 5.05 4.63 4.94 5.02 116,561.00 174.85

9/12/2003 5.14 4.75 5.14 4.90 69,596.00 174.78

9/15/2003 5.39 4.80 5.00 5.15 218,395.00 173.40

9/16/2003 5.66 5.10 5.57 5.63 413,401.00 177.88

9/17/2003 7.23 5.70 5.79 7.00 1,590,110.00 178.40

9/18/2003 7.50 6.95 7.30 7.45 1,280,188.00 179.20

9/19/2003 10.00 8.84 9.89 8.98 4,538,738.00 178.27

9/22/2003 9.50 8.17 9.01 8.45 1,504,428.00 175.12

9/23/2003 8.73 7.82 8.51 7.84 933,367.00 177.87

9/24/2003 8.58 7.72 7.99 7.89 887,806.00 171.69

9/25/2003 8.36 7.81 7.99 7.90 471,345.00 167.10

9/26/2003 8.48 7.40 8.32 7.45 434,135.00 162.49

9/29/2003 8.05 7.41 7.55 8.05 365,825.00 166.26

9/30/2003 8.25 7.65 8.05 8.10 478,889.00 163.11

10/1/2003 8.24 7.95 8.11 8.15 285,381.00 166.93

10/2/2003 8.21 7.97 8.11 8.19 209,447.00 168.51

10/3/2003 8.75 7.95 8.14 8.18 474,872.00 175.06

10/6/2003 10.10 8.33 9.18 8.75 664,567.00 176.58

10/7/2003 9.21 8.78 8.84 9.19 609,652.00 179.07

10/8/2003 9.50 9.07 9.50 9.07 404,532.00 177.01

10/9/2003 9.40 8.76 9.40 9.05 313,645.00 178.65

10/10/2003 9.08 8.51 9.05 8.54 239,079.00 177.69

10/13/2003 8.60 7.80 8.60 7.82 485,183.00 180.81

10/14/2003 8.15 7.61 7.61 7.86 428,258.00 182.79

10/15/2003 8.10 7.90 8.00 8.00 202,899.00 182.68

10/16/2003 8.24 7.90 8.04 7.98 342,978.00 184.09

10/17/2003 8.09 7.81 8.09 7.88 190,106.00 179.22

10/20/2003 8.40 7.70 7.88 8.30 518,100.00 180.00

10/21/2003 8.48 7.95 8.14 8.38 257,098.00 182.81

10/22/2003 8.50 7.84 8.49 7.95 251,778.00 176.85

10/23/2003 7.95 7.55 7.70 7.80 306,343.00 172.87

Page 5

App. 57

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 57 of 128
S6INFT

Date Px High Px Low Px Open Px Last Px Volume Px Last

ZIX

10/24/2003 8.00 7.56 7.71 7.92 173,961.00 170.65

10/27/2003 8.11 7.75 8.10 8.10 225,654.00 173.71

10/28/2003 8.75 7.95 7.95 8.56 320,479.00 179.97

10/29/2003 8.95 8.30 8.56 8.88 369,007.00 182.56

10/30/2003 9.85 8.96 9.00 9.50 977,451.00 182.12

10/31/2003 9.77 8.74 9.31 9.40 756,489.00 180.40

11/3/2003 9.50 8.89 9.32 8.99 584,508.00 186.69

11/4/2003 9.00 8.70 8.97 8.90 193,591.00 187.55

11/5/2003 9.15 8.83 9.00 9.02 844,242.00 187.78

11/6/2003 9.05 8.70 8.90 8.98 181,801.00 189.58

11/7/2003 9.00 8.51 8.63 8.63 306,845.00 189.79

11/10/2003 8.85 8.61 8.69 8.77 137,737.00 184.89

11/11/2003 8.80 8.35 8.80 8.69 218,060.00 182.96

11/12/2003 9.13 8.65 8.69 9.09 221,905.00 188.83

11/13/2003 9.55 8.85 9.02 9.47 450,202.00 188.83

11/14/2003 9.65 9.00 9.50 9.09 192,219.00 183.97

11/17/2003 9.17 8.75 9.00 9.08 168,307.00 180.62

11/18/2003 9.29 8.65 9.05 8.66 250,439.00 178.20

11/19/2003 9.09 8.40 8.80 8.80 252,353.00 179.64

11/20/2003 8.89 8.25 8.89 8.29 426,607.00 179.13

11/21/2003 8.58 8.30 8.35 8.54 1,736,786.00 179.04

11/24/2003 8.70 8.33 8.65 8.46 236,208.00 185.20

11/25/2003 8.58 8.06 8.23 8.13 237,921.00 186.06

11/26/2003 8.27 8.10 8.10 8.20 142,225.00 185.68

11/28/2003 8.77 8.18 8.28 8.76 214,657.00 186.53

12/1/2003 8.94 8.56 8.63 8.79 189,679.00 189.27

12/2/2003 9.24 8.79 8.89 9.12 437,861.00 188.31

12/3/2003 9.25 8.25 9.15 8.44 236,153.00 183.63

12/4/2003 8.58 8.22 8.26 8.30 173,558.00 182.05

12/5/2003 8.28 8.00 8.22 8.01 218,385.00 178.76

12/8/2003 8.49 7.59 8.00 7.70 346,963.00 178.71

12/9/2003 7.75 7.30 7.67 7.46 247,188.00 173.82

12/10/2003 7.54 6.71 7.54 6.79 765,223.00 171.76

12/11/2003 7.00 6.65 6.80 6.75 424,612.00 178.55

12/12/2003 7.64 6.66 6.94 7.16 976,667.00 180.04

12/15/2003 7.65 6.85 7.22 6.85 270,792.00 174.16

12/16/2003 7.25 6.36 6.88 6.40 409,762.00 173.73

12/17/2003 6.66 6.40 6.40 6.50 162,948.00 173.83

12/18/2003 7.00 6.45 6.70 6.95 384,392.00 177.80

12/19/2003 7.14 6.75 6.77 7.11 363,560.00 177.52

12/22/2003 7.15 6.91 7.00 7.03 202,163.00 178.45

12/23/2003 7.70 6.95 7.12 7.62 371,654.00 181.61

12/24/2003 7.96 7.50 7.65 7.74 236,260.00 180.24

12/26/2003 8.13 7.80 7.90 8.06 144,144.00 181.15

12/29/2003 8.10 7.81 8.00 7.88 245,360.00 184.50

12/30/2003 8.36 7.78 7.90 8.26 373,923.00 185.19

12/31/2003 8.99 8.40 8.50 8.69 749,561.00 182.60

1/2/2004 8.63 8.04 8.63 8.22 357,336.00 183.78

1/5/2004 8.92 8.21 8.25 8.60 495,650.00 190.24

1/6/2004 9.17 8.57 8.60 9.15 713,376.00 191.30

Page 6

App. 58

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 58 of 128
S6INFT

Date Px High Px Low Px Open Px Last Px Volume Px Last

ZIX

1/7/2004 9.27 8.90 9.20 9.01 427,496.00 194.29

1/8/2004 9.33 9.01 9.14 9.18 681,857.00 196.99

1/9/2004 11.18 9.15 9.25 10.93 1,803,934.00 194.76

1/12/2004 11.53 10.52 11.25 11.35 1,201,018.00 198.68

1/13/2004 11.60 10.60 11.45 11.10 698,018.00 196.87

1/14/2004 12.11 11.05 11.60 11.40 1,149,484.00 198.33

1/15/2004 12.35 11.29 11.29 12.35 948,103.00 198.34

1/16/2004 13.83 12.46 12.53 12.57 2,550,807.00 201.32

1/20/2004 14.45 13.35 13.88 14.09 1,877,404.00 205.53

1/21/2004 15.60 13.90 14.35 14.90 1,973,779.00 202.05

1/22/2004 15.13 13.90 15.00 14.10 1,232,388.00 198.50

1/23/2004 14.96 13.93 14.30 14.67 774,421.00 200.83

1/26/2004 16.25 14.67 14.89 15.99 1,260,396.00 202.60

1/27/2004 17.50 16.12 16.30 16.14 1,826,283.00 197.30

1/28/2004 16.90 15.50 16.17 15.84 1,172,405.00 194.61

1/29/2004 16.35 13.94 16.35 14.86 1,399,730.00 191.83

1/30/2004 15.17 13.92 14.61 15.10 1,223,388.00 193.64

2/2/2004 16.75 15.52 16.23 16.28 1,005,600.00 192.30

2/3/2004 16.75 15.18 16.17 15.35 943,756.00 190.77

2/4/2004 13.90 12.36 13.80 12.57 2,139,105.00 183.77

2/5/2004 13.61 11.60 13.15 11.90 1,341,191.00 185.21

2/6/2004 12.78 11.60 11.90 12.78 639,893.00 192.91

2/9/2004 13.94 12.80 12.87 13.63 816,479.00 192.86

2/10/2004 14.40 13.23 13.58 14.16 623,870.00 195.45

2/11/2004 14.49 13.56 14.45 13.86 655,954.00 196.25

2/12/2004 13.90 13.30 13.90 13.40 314,903.00 193.79

2/13/2004 13.55 12.56 13.53 12.91 480,879.00 190.87

2/17/2004 13.40 12.89 12.95 13.00 352,185.00 195.14

2/18/2004 13.09 12.90 12.98 13.00 240,056.00 194.80

2/19/2004 13.20 11.97 13.00 12.00 700,459.00 190.71

2/20/2004 12.44 11.76 12.32 12.06 662,415.00 188.66

2/23/2004 12.32 10.44 12.29 10.80 1,570,219.00 183.69

2/24/2004 11.79 10.61 11.11 11.78 1,129,277.00 183.15

2/25/2004 12.98 11.88 12.04 12.18 969,129.00 186.14

2/26/2004 12.37 12.00 12.37 12.30 316,167.00 188.36

2/27/2004 12.43 11.93 12.40 12.00 440,544.00 187.31

3/1/2004 12.38 11.72 12.00 12.33 305,493.00 191.69

3/2/2004 13.50 12.20 12.37 13.15 796,182.00 190.50

3/3/2004 13.20 12.32 13.20 12.50 451,622.00 189.82

3/4/2004 13.51 12.32 12.44 13.34 853,405.00 192.58

3/5/2004 13.75 12.42 12.94 13.15 679,202.00 192.04

3/8/2004 13.84 13.07 13.44 13.10 298,937.00 187.87

3/9/2004 13.16 12.67 13.05 12.78 225,918.00 184.29

3/10/2004 12.97 12.15 12.71 12.58 306,859.00 180.86

3/11/2004 12.93 12.10 12.50 12.27 302,229.00 179.23

3/12/2004 12.79 12.18 12.27 12.60 270,136.00 184.40

3/15/2004 12.79 12.00 12.55 12.45 333,183.00 178.24

3/16/2004 12.69 12.22 12.24 12.35 285,662.00 178.44

3/17/2004 12.69 12.32 12.32 12.53 197,182.00 182.90

3/18/2004 12.65 11.30 12.45 11.30 1,014,316.00 180.67

Page 7

App. 59

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 59 of 128
S6INFT

Date Px High Px Low Px Open Px Last Px Volume Px Last

ZIX

3/19/2004 11.90 11.32 11.44 11.73 353,247.00 179.09

3/22/2004 11.83 10.85 11.80 11.00 575,064.00 174.14

3/23/2004 11.91 11.14 11.70 11.60 517,446.00 174.77

3/24/2004 12.20 11.44 11.44 12.15 398,545.00 175.08

3/25/2004 13.47 12.10 12.10 12.89 878,958.00 182.11

3/26/2004 13.68 12.84 13.16 13.55 747,723.00 182.69

3/29/2004 13.89 13.37 13.69 13.74 461,423.00 185.75

3/30/2004 14.48 13.46 13.55 14.24 827,050.00 187.77

3/31/2004 15.13 14.16 14.40 14.58 1,047,674.00 186.77

4/1/2004 15.25 14.26 14.48 15.24 777,967.00 189.42

4/2/2004 15.82 14.87 15.41 15.35 652,003.00 193.92

4/5/2004 15.41 13.81 15.41 14.70 1,304,623.00 196.37

4/6/2004 15.12 14.64 15.00 14.90 505,820.00 192.82

4/7/2004 15.31 14.25 14.91 15.23 636,106.00 194.15

4/8/2004 16.46 15.35 15.50 16.13 1,283,872.00 194.46

4/12/2004 17.68 15.83 16.10 17.33 1,452,803.00 196.80

4/13/2004 17.83 16.26 17.60 17.00 957,559.00 191.60

4/14/2004 17.23 16.30 16.50 16.80 630,034.00 190.30

4/15/2004 16.98 15.98 16.57 15.98 582,535.00 186.50

4/16/2004 16.06 14.66 15.95 15.15 1,064,854.00 184.33

4/19/2004 15.90 14.80 14.80 15.70 662,897.00 185.90

4/20/2004 16.60 15.17 15.85 15.25 526,924.00 182.71

4/21/2004 16.19 14.80 15.20 16.07 731,115.00 185.76

4/22/2004 16.20 15.32 15.86 15.95 592,193.00 187.69

4/23/2004 16.42 15.79 16.08 15.94 476,046.00 187.74

4/26/2004 17.10 15.91 15.91 16.61 711,650.00 184.90

4/27/2004 17.46 16.55 16.80 16.85 953,760.00 183.78

4/28/2004 16.85 15.65 16.60 16.13 584,172.00 179.57

4/29/2004 18.55 15.80 18.04 16.30 1,971,056.00 175.28

4/30/2004 16.45 14.60 16.35 14.98 966,818.00 172.13

5/3/2004 15.48 14.09 15.18 14.43 825,399.00 173.09

5/4/2004 14.40 13.51 14.25 13.61 821,595.00 176.38

5/5/2004 12.35 11.25 11.30 11.49 2,438,820.00 176.50

5/6/2004 12.00 8.39 11.90 8.89 5,000,890.00 174.52

5/7/2004 9.40 8.49 8.72 8.69 1,674,880.00 172.00

5/10/2004 8.58 7.51 8.37 7.79 2,077,160.00 168.64

5/11/2004 8.34 7.66 8.24 7.84 932,553.00 173.07

5/12/2004 8.44 7.50 7.83 8.33 1,076,294.00 172.58

5/13/2004 8.60 7.71 8.21 7.85 973,269.00 172.48

5/14/2004 8.20 7.00 7.80 7.10 1,142,483.00 169.53

5/17/2004 7.21 6.46 6.64 7.17 1,010,341.00 166.37

5/18/2004 7.38 6.51 7.32 6.59 689,895.00 169.29

5/19/2004 7.64 6.60 6.60 7.30 1,310,642.00 169.82

5/20/2004 7.41 6.70 7.20 6.78 691,038.00 169.24

5/21/2004 7.18 6.67 6.93 6.84 519,521.00 171.43

5/24/2004 7.14 6.93 6.95 7.11 486,845.00 174.05

5/25/2004 7.74 7.03 7.10 7.57 1,326,282.00 179.28

5/26/2004 7.80 7.40 7.50 7.50 702,244.00 180.76

5/27/2004 7.99 7.56 7.56 7.95 628,615.00 180.19

5/28/2004 9.12 7.75 7.95 8.94 1,834,624.00 180.02

Page 8

App. 60

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 60 of 128
S6INFT

Date Px High Px Low Px Open Px Last Px Volume Px Last

ZIX

6/1/2004 8.94 8.24 8.94 8.49 994,836.00 180.76

6/2/2004 9.10 8.58 8.72 8.83 718,655.00 179.90

6/3/2004 8.90 8.34 8.90 8.43 700,792.00 175.19

6/4/2004 8.75 7.95 8.70 8.05 703,248.00 178.69

6/7/2004 8.40 8.10 8.15 8.29 307,018.00 183.02

6/8/2004 8.69 8.20 8.39 8.43 318,002.00 182.84

6/9/2004 8.58 8.15 8.35 8.20 333,563.00 179.28

6/10/2004 8.29 7.95 8.23 8.09 228,375.00 179.13

6/14/2004 8.20 7.91 8.05 7.91 275,657.00 174.85

6/15/2004 8.29 7.90 7.93 8.00 454,134.00 178.79

6/16/2004 8.75 8.26 8.31 8.50 745,111.00 179.33

6/17/2004 8.70 8.25 8.57 8.41 340,204.00 177.39

6/18/2004 8.50 8.17 8.39 8.50 246,929.00 177.70

6/21/2004 8.50 8.04 8.40 8.12 253,709.00 176.32

6/22/2004 8.43 8.15 8.20 8.39 297,415.00 179.16

6/23/2004 8.49 8.22 8.37 8.40 265,012.00 182.89

6/24/2004 8.39 8.20 8.24 8.37 244,092.00 182.04

6/25/2004 8.66 8.25 8.40 8.66 1,853,850.00 185.68

6/28/2004 8.50 7.66 8.44 8.03 809,662.00 184.08

6/29/2004 8.06 7.59 8.06 7.65 468,308.00 187.09

6/30/2004 7.95 7.55 7.64 7.89 363,974.00 189.22

7/1/2004 7.95 7.56 7.80 7.70 189,278.00 183.66

7/2/2004 7.74 7.55 7.74 7.59 144,201.00 182.31

7/6/2004 7.59 7.01 7.53 7.18 321,920.00 175.61

7/7/2004 7.20 6.65 7.06 6.80 512,809.00 173.76

7/8/2004 6.86 5.94 6.86 5.96 1,014,514.00 171.14

7/9/2004 6.28 5.84 6.03 6.03 355,923.00 173.01

7/12/2004 6.24 5.57 6.10 5.63 415,314.00 169.88

7/13/2004 6.15 5.62 5.62 6.00 565,675.00 169.85

7/14/2004 6.07 5.75 6.00 5.90 374,062.00 166.54

7/15/2004 5.90 5.60 5.90 5.67 289,454.00 167.45

7/16/2004 6.00 5.69 5.69 5.81 360,942.00 164.51

7/19/2004 5.95 5.08 5.92 5.43 577,814.00 163.42

7/20/2004 5.88 5.26 5.40 5.77 350,249.00 166.78

7/21/2004 6.55 5.91 5.98 6.03 1,271,095.00 160.60

7/22/2004 6.13 5.75 6.13 5.86 347,332.00 162.42

7/23/2004 5.95 5.25 5.78 5.44 378,261.00 158.99

7/26/2004 5.50 4.79 5.50 4.96 596,069.00 157.28

7/27/2004 5.50 5.01 5.12 5.43 329,562.00 161.78

7/28/2004 5.53 5.25 5.42 5.39 208,260.00 159.54

7/29/2004 5.80 5.42 5.54 5.77 321,219.00 163.99

7/30/2004 5.96 5.65 5.88 5.86 273,395.00 165.59

8/2/2004 5.86 5.45 5.86 5.72 251,761.00 165.07

8/3/2004 5.82 5.23 5.77 5.30 389,248.00 160.66

8/4/2004 5.60 5.10 5.36 5.20 414,720.00 161.62

8/5/2004 5.25 4.61 5.12 4.63 714,003.00 159.14

8/6/2004 4.69 4.01 4.30 4.46 755,763.00 153.14

8/9/2004 4.52 4.10 4.50 4.14 333,189.00 153.39

8/10/2004 4.30 3.98 4.01 4.19 425,962.00 157.00

8/11/2004 4.24 3.94 4.24 4.11 352,327.00 153.50

Page 9

App. 61

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 61 of 128
S6INFT

Date Px High Px Low Px Open Px Last Px Volume Px Last

ZIX

8/12/2004 4.17 4.00 4.06 4.01 242,966.00 149.53

8/13/2004 4.10 3.81 4.00 3.88 330,331.00 149.95

8/16/2004 4.03 3.83 3.88 3.92 182,012.00 152.92

8/17/2004 4.15 3.96 4.05 4.04 184,979.00 154.98

8/18/2004 4.50 3.95 4.06 4.41 321,649.00 160.16

8/19/2004 4.60 4.31 4.50 4.38 300,770.00 159.55

8/20/2004 4.49 4.23 4.42 4.30 272,421.00 162.72

8/23/2004 4.42 4.23 4.33 4.38 142,539.00 162.53

8/24/2004 4.51 4.16 4.44 4.19 185,634.00 161.99

8/25/2004 4.88 4.20 4.36 4.80 478,364.00 163.92

8/26/2004 4.84 4.32 4.80 4.44 295,721.00 161.39

8/27/2004 4.50 4.34 4.48 4.47 118,607.00 163.29

8/30/2004 4.48 4.18 4.35 4.32 129,995.00 159.77

8/31/2004 4.44 4.10 4.24 4.15 393,531.00 159.41

9/1/2004 4.25 4.11 4.25 4.13 194,468.00 161.20

9/2/2004 4.49 4.22 4.31 4.30 266,808.00 163.11

9/3/2004 4.38 4.23 4.36 4.28 166,167.00 159.23

9/7/2004 4.47 4.11 4.12 4.47 312,895.00 161.01

9/8/2004 4.47 4.26 4.40 4.30 186,388.00 159.52

9/9/2004 4.47 4.20 4.42 4.31 243,768.00 163.22

9/10/2004 4.63 4.30 4.32 4.59 223,960.00 167.01

9/13/2004 5.39 4.50 4.59 4.89 1,095,893.00 170.00

9/14/2004 5.05 4.69 4.81 4.78 368,262.00 169.48

9/15/2004 4.79 4.52 4.79 4.61 180,721.00 166.62

9/16/2004 4.77 4.53 4.69 4.77 155,108.00 168.46

9/17/2004 4.98 4.64 4.81 4.80 154,603.00 168.96

9/20/2004 4.85 4.54 4.85 4.69 115,583.00 169.38

9/21/2004 4.87 4.62 4.80 4.81 124,224.00 172.12

9/22/2004 4.81 4.55 4.81 4.63 158,978.00 167.47

9/23/2004 4.68 4.40 4.53 4.48 259,144.00 168.15

9/24/2004 4.51 4.35 4.35 4.44 149,300.00 165.96

9/27/2004 4.73 4.35 4.73 4.42 178,491.00 163.41

9/28/2004 4.58 4.31 4.31 4.51 128,013.00 164.50

9/29/2004 4.70 4.47 4.61 4.60 151,589.00 168.41

9/30/2004 4.69 4.47 4.47 4.58 152,500.00 168.69

10/1/2004 4.80 4.56 4.59 4.71 207,422.00 174.47

10/4/2004 5.29 4.66 4.88 5.02 519,544.00 177.61

10/5/2004 5.21 4.92 5.10 5.01 478,812.00 177.99

10/6/2004 5.80 4.92 4.95 5.77 771,223.00 179.85

10/7/2004 6.09 5.45 5.80 5.46 803,188.00 177.08

10/8/2004 5.62 5.20 5.45 5.20 261,133.00 172.10

10/11/2004 5.61 5.20 5.32 5.55 161,773.00 173.50

10/12/2004 6.20 5.30 5.45 6.08 776,874.00 172.84

10/13/2004 6.25 5.70 6.18 5.90 429,598.00 172.85

10/14/2004 6.20 5.75 6.00 5.80 296,480.00 169.99

10/15/2004 5.95 5.63 5.77 5.71 265,606.00 170.21

10/18/2004 6.00 5.60 5.80 5.72 216,182.00 171.88

10/19/2004 5.90 5.45 5.61 5.49 261,015.00 172.18

10/20/2004 5.70 5.35 5.41 5.69 165,691.00 172.88

10/21/2004 5.86 5.62 5.63 5.74 207,970.00 177.23

Page 10

App. 62

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 62 of 128
S6INFT

Date Px High Px Low Px Open Px Last Px Volume Px Last

ZIX

10/22/2004 5.84 5.41 5.61 5.48 237,673.00 172.25

10/25/2004 5.51 5.27 5.37 5.33 199,587.00 172.84

10/26/2004 5.59 5.26 5.26 5.40 170,307.00 173.01

10/27/2004 5.70 5.44 5.65 5.69 311,004.00 178.84

10/28/2004 5.75 5.33 5.75 5.45 256,744.00 178.35

10/29/2004 5.58 5.25 5.51 5.40 138,183.00 177.75

11/1/2004 5.55 5.26 5.26 5.39 126,328.00 179.19

11/2/2004 5.50 4.79 5.50 4.88 675,223.00 178.67

11/3/2004 5.09 4.70 5.08 4.77 422,669.00 180.36

11/4/2004 4.67 4.40 4.65 4.55 1,015,097.00 181.69

11/5/2004 4.34 3.84 3.91 4.16 1,366,380.00 183.74

11/8/2004 4.34 4.05 4.13 4.18 493,085.00 183.30

11/9/2004 4.46 4.19 4.44 4.23 276,937.00 183.78

11/10/2004 4.54 4.26 4.54 4.46 320,597.00 183.05

11/11/2004 4.70 4.40 4.45 4.66 490,460.00 185.47

11/12/2004 5.31 4.62 4.62 5.26 1,312,850.00 187.33

11/15/2004 5.35 4.99 5.25 5.25 605,615.00 189.55

11/16/2004 5.25 4.90 5.11 4.97 380,218.00 187.78

11/17/2004 5.15 4.66 4.91 4.81 353,211.00 190.62

11/18/2004 4.95 4.59 4.66 4.64 291,912.00 190.31

11/19/2004 4.66 4.41 4.66 4.48 272,745.00 186.65

11/22/2004 4.62 4.30 4.62 4.47 255,296.00 188.50

11/23/2004 4.60 4.40 4.60 4.52 205,311.00 188.47

11/24/2004 4.58 4.40 4.48 4.45 226,644.00 190.06

11/26/2004 4.54 4.38 4.38 4.40 101,637.00 189.46

11/29/2004 4.75 4.41 4.56 4.70 459,261.00 191.17

11/30/2004 4.77 4.47 4.65 4.58 374,642.00 189.84

12/1/2004 4.81 4.58 4.60 4.73 268,916.00 194.60

12/2/2004 4.84 4.64 4.64 4.76 296,046.00 195.43

12/3/2004 5.29 4.81 4.90 5.09 1,084,756.00 196.73

12/6/2004 5.39 5.02 5.03 5.30 509,422.00 196.59

12/7/2004 5.52 5.01 5.30 5.01 862,338.00 191.45

12/8/2004 5.16 4.89 5.07 5.01 366,161.00 191.56

12/9/2004 5.07 4.87 5.06 4.97 275,544.00 189.32

12/10/2004 5.07 4.62 4.87 4.75 443,581.00 189.18

12/13/2004 5.10 4.69 5.02 4.75 598,280.00 190.33

12/14/2004 5.04 4.68 4.80 4.72 505,762.00 192.18

12/15/2004 4.90 4.61 4.75 4.61 356,666.00 193.52

12/16/2004 4.75 4.44 4.60 4.51 511,845.00 191.42

12/17/2004 4.61 4.31 4.56 4.61 618,828.00 191.33

12/20/2004 4.65 4.36 4.54 4.49 364,984.00 188.43

12/21/2004 4.75 4.38 4.47 4.49 852,054.00 191.07

12/22/2004 4.65 4.41 4.42 4.61 461,208.00 192.29

12/23/2004 4.71 4.50 4.61 4.68 337,442.00 192.97

12/27/2004 4.97 4.69 4.69 4.88 544,759.00 191.43

12/28/2004 5.38 4.92 4.94 5.19 1,074,459.00 194.53

12/29/2004 5.25 5.10 5.15 5.11 508,006.00 194.69

12/30/2004 5.25 5.01 5.12 5.05 445,408.00 194.59

12/31/2004 5.30 5.04 5.08 5.15 700,295.00 194.45

1/3/2005 5.34 4.81 5.34 4.99 536,262.00 190.26

Page 11

App. 63

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 63 of 128
S6INFT

Date Px High Px Low Px Open Px Last Px Volume Px Last

ZIX

1/4/2005 5.32 4.72 5.17 4.83 771,639.00 184.88

1/5/2005 4.96 4.52 4.96 4.75 578,034.00 181.83

1/6/2005 4.80 4.53 4.76 4.53 336,306.00 180.86

1/7/2005 4.70 4.42 4.70 4.52 365,386.00 179.21

1/10/2005 4.70 4.37 4.69 4.40 456,326.00 180.33

1/11/2005 4.46 4.11 4.41 4.19 581,616.00 178.18

1/12/2005 4.27 4.01 4.27 4.09 351,061.00 179.51

1/13/2005 4.20 3.98 4.20 4.13 302,741.00 178.13

1/14/2005 4.38 4.10 4.21 4.30 430,339.00 181.08

1/18/2005 4.39 4.18 4.36 4.39 331,365.00 183.45

1/19/2005 4.39 4.19 4.39 4.23 230,812.00 180.13

1/20/2005 4.22 4.10 4.18 4.17 209,050.00 178.49

1/21/2005 4.29 4.00 4.23 4.06 279,303.00 178.14

1/24/2005 4.13 3.77 4.13 3.86 459,905.00 176.02

1/25/2005 4.00 3.77 3.96 3.88 288,408.00 175.79

1/26/2005 3.96 3.80 3.95 3.85 180,090.00 180.27

1/27/2005 3.95 3.68 3.95 3.70 306,743.00 181.06

1/28/2005 3.74 3.35 3.70 3.66 547,178.00 180.28

1/31/2005 3.80 3.61 3.70 3.73 265,872.00 183.84

2/1/2005 3.92 3.66 3.66 3.84 211,401.00 185.07

2/2/2005 4.12 3.83 3.94 4.08 502,964.00 186.20

2/3/2005 4.10 3.96 4.06 4.01 239,893.00 185.52

2/4/2005 4.07 3.83 4.05 3.86 270,404.00 189.68

2/7/2005 4.05 3.72 3.86 4.03 228,193.00 189.87

2/8/2005 4.22 4.04 4.06 4.12 303,147.00 191.86

2/9/2005 3.73 3.42 3.50 3.52 847,843.00 186.24

2/10/2005 3.64 3.35 3.64 3.48 442,894.00 185.92

2/11/2005 3.53 3.35 3.45 3.37 261,461.00 188.85

2/14/2005 3.51 3.21 3.40 3.43 301,140.00 188.44

2/15/2005 3.54 3.31 3.41 3.33 252,439.00 189.53

2/16/2005 3.38 3.25 3.29 3.27 205,658.00 190.01

2/17/2005 3.31 3.00 3.26 3.07 634,266.00 186.66

2/18/2005 3.23 3.07 3.12 3.17 199,494.00 186.52

2/22/2005 3.17 3.01 3.12 3.02 224,985.00 183.21

2/23/2005 3.16 2.96 3.12 2.98 329,909.00 183.00

2/24/2005 3.00 2.67 2.96 2.68 654,322.00 185.27

2/25/2005 2.98 2.70 2.70 2.88 484,938.00 187.94

2/28/2005 3.05 2.77 2.98 2.97 275,518.00 187.75

3/1/2005 3.23 2.93 2.98 2.95 353,588.00 189.47

3/2/2005 3.09 2.90 2.92 3.02 231,695.00 188.53

3/3/2005 3.17 2.97 3.05 3.14 285,651.00 188.08

3/4/2005 3.49 3.06 3.06 3.45 428,390.00 189.05

3/7/2005 3.79 3.38 3.64 3.54 464,979.00 189.84

3/8/2005 3.85 3.55 3.61 3.82 553,846.00 187.68

3/9/2005 3.89 3.61 3.84 3.69 381,148.00 185.64

3/10/2005 3.80 3.48 3.70 3.54 270,503.00 184.78

3/11/2005 3.80 3.36 3.60 3.47 303,432.00 183.90

3/14/2005 3.63 2.96 3.45 3.33 426,469.00 184.74

3/15/2005 3.37 3.16 3.26 3.30 317,016.00 182.73

3/16/2005 3.39 3.23 3.27 3.33 127,796.00 181.65

Page 12

App. 64

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 64 of 128
S6INFT

Date Px High Px Low Px Open Px Last Px Volume Px Last

ZIX

3/17/2005 3.56 3.28 3.35 3.56 273,109.00 182.23

3/18/2005 3.80 3.49 3.49 3.60 416,047.00 181.40

3/21/2005 3.78 3.56 3.60 3.75 182,510.00 181.25

3/22/2005 4.05 3.71 3.73 3.81 487,358.00 180.75

3/23/2005 3.84 3.65 3.79 3.77 179,571.00 178.99

3/24/2005 4.04 3.70 3.85 3.87 451,009.00 179.93

3/28/2005 4.01 3.89 3.90 3.95 362,534.00 179.07

3/29/2005 4.15 3.81 3.95 3.94 212,407.00 175.81

3/30/2005 4.05 3.86 3.97 3.95 159,825.00 180.23

3/31/2005 3.94 3.64 3.93 3.74 246,869.00 179.48

4/1/2005 3.72 3.20 3.72 3.33 447,522.00 178.46

4/4/2005 3.32 3.11 3.32 3.19 223,700.00 179.04

4/5/2005 3.34 3.06 3.25 3.08 226,023.00 177.87

4/6/2005 3.46 3.06 3.06 3.41 437,687.00 177.82

4/7/2005 3.72 3.31 3.41 3.69 283,042.00 179.86

4/8/2005 3.92 3.69 3.69 3.74 225,364.00 177.89

4/11/2005 3.79 3.55 3.76 3.56 117,110.00 176.54

4/12/2005 3.80 3.46 3.53 3.77 137,061.00 176.68

4/13/2005 3.87 3.65 3.78 3.76 156,608.00 172.85

4/14/2005 3.83 3.36 3.80 3.42 243,095.00 169.38

4/15/2005 3.44 3.16 3.42 3.20 346,514.00 165.36

4/18/2005 3.34 3.20 3.26 3.34 105,975.00 166.60

4/19/2005 3.35 3.13 3.35 3.23 219,633.00 169.55

4/20/2005 3.23 3.00 3.16 3.14 364,772.00 167.20

4/21/2005 3.18 3.05 3.16 3.14 225,295.00 172.68

4/22/2005 3.13 2.92 3.10 2.92 240,436.00 169.19

4/25/2005 3.12 2.85 2.92 3.05 246,693.00 170.26

4/26/2005 3.06 2.96 3.00 3.05 192,518.00 168.34

4/27/2005 3.05 2.99 3.01 2.99 136,706.00 168.93

4/28/2005 3.05 2.91 3.00 2.91 202,550.00 164.73

4/29/2005 2.93 2.63 2.91 2.75 519,563.00 166.75

5/2/2005 2.80 2.60 2.71 2.62 278,171.00 168.53

5/3/2005 2.79 2.50 2.65 2.71 286,926.00 168.24

5/4/2005 2.75 2.50 2.75 2.60 249,085.00 170.58

Page 13

App. 65

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 65 of 128
EXHIBIT D

App. 66

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 66 of 128
Quarter End Date Total 13F Institution Holdings Total % Held Total # of 13F Institutions Price $ Shares Outstanding

31-Mar-05 7,576,473 23.55% 68 3.74 32,169,000

31-Dec-04 7,192,312 22.36% 69 5.15 32,169,000

30-Sep-04 7,796,361 24.42% 64 4.58 31,927,000

30-Jun-04 8,556,308 26.97% 72 7.89 31,728,000

31-Mar-04 6,512,224 21.20% 66 14.58 30,717,000

31-Dec-03 4,511,188 16.14% 50 8.69 27,945,000

30-Sep-03 2,409,339 10.59% 46 8.10 22,745,000

30-Jun-03 2,539,761 11.99% 46 3.77 21,179,000

31-Mar-03 2,370,949 11.52% 46 4.30 20,583,000

31-Dec-02 2,270,097 12.21% 46 4.41 18,593,000

30-Sep-02 2,234,167 12.31% 44 3.85 18,143,000

Exhibit 'D' Reported Institutional Holdings of Zix Corporation

App. 67

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 67 of 128
EXHIBIT 2

App. 68

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 68 of 128
UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF TEXAS

DALLAS DIVISION

MATT BRODY, on behalf of himself §

and all others similarly situated, §

§ Civil Action No. 3:04-CV-1931-K

Plaintiffs, § ECF

§

vs. §

§

ZIX CORPORATION, RONALD A. §

WOESSNER, JOHN A. RYAN, §

DANIEL S. NUTKIS, STEVE M.YORK §

and DENNIS F. HEATHCOTE, §

§

Defendants. §

DECLARATION OF ROGER F. CLAXTON IN SUPPORT OF 

PLAINTIFF’S MOTION FOR CLASS CERTIFICATION

I, Roger F. Claxton, declare under penalty of perjury this 13 day of April, 2006: th

1. I am a member and a lawyer as the law firm if Claxton & Hill, PLLC. I submit

this declaration in support of the motion of Plaintiff’s Motion for Class Certification.

2. Attached hereto as Exhibit A is a true and correct copy of the firm biography for

Murray, Frank & Sailer, LLP.

3. Attached hereto as Exhibit B is a true and correct copy of the firm biography for

Schiffrin & Barroway, LLP.

4. Attached hereto as Exhibit C is a true and correct copy of the firm biography for

Claxton & Hill, PLLC.

I hereby declare under penalty of perjury that the foregoing is true and correct.

s/Roger F. Claxton 

ROGER F. CLAXTON

App. 69

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 69 of 128
CERTIFICATE OF SERVICE

I hereby certify that on this 13th day of April, 2007, I electronically filed the foregoing

document with the clerk of court for the U.S. District Court, Northern District of Texas, using the

electronic case filing system of the court. The electronic case filing system sent a “Notice of

Electronic Filing” to the following attorneys of record who have consented in writing to accept

this notice as service of this document by electronic means:

Gerard G. Pecht

FULBRIGHT & JAWORSKI L.L.P.

1301 McKinney, Suite 5100

Houston, Texas 77010-3095

gpecht@fulbright.com

Karl G. Dial

FULBRIGHT & JAWORSKI L.L.P.

Texas Commerce Bank Tower

2200 Ross Avenue, Suite 2800

Dallas, Texas 75201

kdial@fulbright.com

I further certify that a true and correct copy of the foregoing document was sent by first

class mail to counsel listed below that have not consented in writing to accept this notice by

electronic means:

Eric J. Belfi

Marvin L. Frank

Lawrence D. McCabe

Murray, Frank & Sailer LLP

275 Madison Avenue, Suite 801

New York, NY 10016

Eric Lechtzin

Heather Tashman

Schiffrin & Barroway, LLP

280 King of Prussia Road

Radnor, PA 19087

Thomas A. Dubbs

Goodkind Labaton Rudoff & Sucharow

100 Park Avenue

New York, NY 10017

Frank E. Goodrich

Baron & Budd

3102 Oak Lawn Avenue, Suite 1100

Dallas, Texas 75219

Jeffrey S. Nobel

Andrew M. Schatz

Schatz & Nobel

1 Corporate Center, Suite 1700

Hartford, CT 06109

s/Roger F. Claxton

Roger F. Claxton

App. 70

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 70 of 128
EXHIBIT A

App. 71

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 71 of 128
Murray, Frank & Sailer LLP 

275 Madison Avenue, Suite 801 

New York, New York 10016 

Telephone: (212) 682-1818 

U.S. Toll Free: (800) 497-8076 

Facsimile: (212) 682-1892 

info@murrayfrank.com

www.murrayfrank.com

App. 72

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 72 of 128
URRAY, FRANK & SAILER 

LLP concentrates its practice 

in class action litigation, 

particularly in cases involving 

federal securities law, federal antitrust 

law, ERISA, and state consumer 

protection law. 

SECURITIES FRAUD

 Murray, Frank & Sailer has been 

lead, co-lead counsel, a member of the 

executive committee, or represented a 

class representative in successful 

securities actions throughout the United 

States, including the following: 

In re Royal Ahold Sec. Litig. (D. Md.) 

(recovery of $1.1 billion); In re 

Williams Sec. Litig. (N.D. Okla.) 

(recently settled for $311 million); In re 

Merrill Lynch Inc. Research Reports 

Sec. Litig. (S.D.N.Y.) (recently settled 

for $125 million); In re JWP Inc. Sec. 

Litig. (S.D.N.Y.) ($40 million); In re 

Turkcell Iletisim Hizmetleri A.S. Sec. 

Litig. (S.D.N.Y.) ($19.2 million); In re 

PictureTel Inc. Sec. Litig. (D. Mass.) 

($14 million); In re Marion Merrell 

Dow Inc. Sec. Litig. (W.D. Mo.) ($14 

million); LaVallie v. Owens-Corning 

Fiberglas Corp. (N.D. Ohio) ($10 

million); In re USX Sec. Litig. (W.D. 

Pa.) ($9 million); Miller v. Bonmati

(Del. Ch.) ($9.9 million); Feiner v. 

SS&C Tech., Inc. (D. Conn.) ($8.8 

million). 

 The firm is currently lead or co-lead 

counsel or a member of an executive 

committee in many cases, including the 

following: 

In re General Motors Corp. Sec. Litig. 

(E.D. Mich.); In re Williams Sec. Litig. 

(N.D. Okla.); In re Harley-Davidson, 

Inc. Sec. Litig. (E.D. Wis.); In re Yukos 

Oil Sec. Litig. (S.D.N.Y.); Amalgamated 

Bank v. The Coca-Cola Company (N.D. 

Ga.); Katz v. Praecis Pharmaceuticals 

Inc. (D. Mass.); In re Citadel Software 

Inc. Sec. Litig. (N.D. Tex.); In re EIS 

Int’l Inc. Sec. Litig. (D. Conn.); In re 

Infineon Technologies AG Sec. Litig. 

(N.D. Cal.); In re Andrx Sec. Litig. (S.D. 

Fla.); In re Crompton Sec. Litig. (D. 

Conn.); In re Ramp Corp. Sec. Litig. 

(S.D.N.Y.); In re Credit Suisse First 

Boston Corp. (Lantronix, Inc.) Analyst 

Sec. Litig. (S.D.N.Y.); Brody v. Zix 

Corp. (N.D. Tex.). 

 Murray, Frank & Sailer also 

represents institutional plaintiffs in 

individual actions against Aol Time 

Warner and Royal Dutch Petroleum for 

violations of the United States securities 

laws. 

M 

App. 73

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 73 of 128
2

ANTITRUST

 Murray, Frank & Sailer has also 

represented plaintiffs in federal and 

state class actions arising out of antitrust 

law violations, including the Infant 

Formula, Brand Name Pharmaceutical, 

Nasdaq, VISA/Master-Card, Playmobil, 

Disposable Contact Lens, and Time 

Warner cases. 

 Murray, Frank & Sailer is currently 

counsel in many cases involving 

Sherman Act violations including: In re 

American Express Antitrust Litig.

(S.D.N.Y.); In re Linens Antitrust Litig. 

(S.D.N.Y.); Schwartz v. The Thompson 

Corp. (S.D.N.Y.); In re Hydrogen 

Peroxide Antitrust Litig. (E.D. Pa.); In 

re Air Cargo Carrier Antitrust Litig.

(E.D.N.Y); Slattery v. Apple Computer 

Inc. (N.D. Cal.), Payment Card 

Interchange Fee and Merchant 

Discount Antitrust Litig. (E.D.N.Y.), 

and McDonough v. Toys “R” Us – 

Delaware, Inc., d/b/a Babies “R” Us, 

and Babies “R” Us, Inc. (E.D. Pa.). 

 

 In the Playmobil Case, Murray, 

Frank & Sailer was co-lead counsel, 

representing a class of purchasers of 

Playmobil products. Murray, Frank & 

Sailer was successful in obtaining 

certification of a plaintiff class in an oftcited opinion and settling the case on 

favorable terms to the class. The Court, 

at the fairness hearing, “compliment[ed] 

both counsel in the fine job done 

negotiating with each other and also the 

legal work that has been submitted to 

the Court.” In the Disposable Contact 

Lens case, Murray, Frank & Sailer 

represented a class of purchasers of 

disposable contact lenses in California, 

and eventually obtained reversal in the 

California appellate courts of a denial of 

class certification. In the Time Warner

case, Murray, Frank & Sailer was colead counsel, representing a class of 

subscribers of Time Warner’s high 

speed internet service. Murray, Frank & 

Sailer successfully overcame an 

arbitration clause and obtained favorable 

settlement for the class. 

CONSUMER PROTECTION

 In the consumer protection area, 

Murray, Frank & Sailer as lead counsel 

has represented consumers in class 

actions involving, inter alia, misleading 

uniform public statements concerning 

wrongful billing practices and poor 

service by wireless communications 

providers; wrongful billing practices by 

credit card companies, banks and 

retailers; mislabeling of imported olive 

oil; mislabeling of domestic pasta; 

brokerage fees imposed with no or 

insufficient notice; Medicaid 

overcharges; and faulty automobile seat 

heaters. 

 Among its cases of note, Murray, 

Frank & Sailer recovered benefits worth 

$40 million in Naevus Int’l v. AT&T 

Corp., a consumer class action brought 

in New York State Supreme Court on 

behalf of consumers who subscribed to 

AT&T’s Digital One Rate wireless 

App. 74

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 74 of 128
3

service. In 2005, the firm settled with 

Volkswagen of America, forcing a 

recall of all 2003 and 2004 Volkswagen 

Jettas for faulty automobile seat heaters. 

ERISA

Murray, Frank & Sailer is 

prosecuting several actions in federal 

court against employers on behalf of 

employees for employee investment 

fund mismanagement; knowingly 

offering, marketing, and selling 

improper investments to employees for 

their retirement accounts; and 

knowingly misrepresenting the 

prospects of the employees’ company in 

order to sell company stock to them. 

The firm is currently co-lead counsel in 

the Winn-Dixie Stores, Inc. ERISA Litig.

(S.D. Fla.) and class counsel in In re 

AON ERISA Litig. (N.D. Ill.); In re 

Cardinal Health, Inc. ERISA Litig. 

(S.D. Ohio). 

FIRM HIGHLIGHTS

Murray, Frank & Sailer filed over 120 

securities class actions in 2004 and 

over 100 cases in 2005. In Verteris’s 

“Securities Class Action: Plaintiffs’ 

Counsel Watch,” Q2, 2005 Report, 

MFS was ranked fourth in “Plaintiffs’ 

Counsel Litigation Activity Index” and 

“Plaintiffs’ Counsel by Total Unique 

Actions,” and fifth in “Plaintiffs’ 

Counsel Based on Lead Plaintiff 

Appointments.” MFS is also a member 

of the Executive Committee of the 

National Association of Shareholder 

and Consumer Attorneys (NASCAT).

MAJOR ONGOING CASES

In re General Motors Corp. Securities 

Litigation (E.D. Mich.) – MFS is colead counsel representing a class of 

investors in General Motors securities;

Amalgamated Bank v. The Coca-Cola 

Company (N.D. Ga.) – MFS is co-lead 

counsel representing a class of 

investors of Coca-Cola securities; 

In re Harley-Davidson Securities 

Litigation (E.D. Wis.) – MFS is colead counsel representing a class of 

investors in Harley-Davidson 

Company securities; 

JUDICIAL COMMENDATIONS

In re General Motors Corp. Sec. Litig., 

05-CV-8088 (S.D.N.Y. 2006), in which 

the Court, before appointing the firm 

lead counsel, stated “we know Mr. 

Frank very well, so they are both 

esteemed and experienced attorneys in 

these matters, and I don’t think anybody 

could go wrong with either one of them 

to be honest with you.”

Miller v. Bonmati, Del. Ch., C.A. No. 

15849, Lamb, V.C. (March 18, 1999), 

in which the Court stated “I am quite 

pleased by the work that was done by 

the plaintiffs’ counsel. They seem to 

have done a very professional job of 

App. 75

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 75 of 128
4

dealing with a difficult situation and 

have obtained, from everything I can 

ascertain from the record in front of 

me, quite a beneficial settlement that 

gives an opportunity for this situation 

to work itself out.” 

Adair v. Bristol Tech. Systems, Inc., 

179 F.R.D. 126 (S.D.N.Y. 1998) in 

which Judge Sweet stated plaintiffs’ 

counsel were “skilled advocates and 

negotiators.” 

In re EIS International, Inc. Securities 

Litigation, 97-cv-813 (D. Conn.), in 

which the Court stated: “I wanted to 

compliment counsel . . . We have been 

together quite a long time in the case 

and I appreciate all the fine legal work 

that you’ve done.” 

Adair v. Microfield Graphics, Inc. (D. 

Or. 1998), in a case that recovered 

47% of estimated damages, the Court 

noted “Plaintiff’s counsel have 

exhibited a high quality of work in 

prosecuting this action.” 

Steffen v. Playmobil USA, Inc., Civ 

No. 95-2896 (E.D.N.Y.), in which the 

Court “compliment[ed] both counsel 

in the fine job done negotiating with 

each other and also the legal work that 

has been submitted to the Court.” 

Kinney v. Metro Global Media, Inc., 

170 F. Supp. 2d 173 (D.R.I. 2001), 

Judge Lisi expressed an “appreciation 

for how difficult this case was for all 

sides, for how hotly contested many of 

the issues in this case were from the 

get-go and how reaching a settlement, 

given all of those considerations, was 

particularly difficult; so I commend all 

of you for persevering in the efforts 

that you made toward reaching a 

settlement . . . [and] for achieving what 

I find to be a fair, adequate and 

reasonable result[.]” 

PRECEDENT SETTING DECISIONS

In Cambridge Biotech Corp. v. 

Deloitte and Touche LLP, 6 Mass. L. 

Rptr. 367 (Mass. Super. Jan 28, 1997), 

on a case of first impression, the 

Superior Court of Massachusetts 

applied the doctrine of continuous 

representation for statute of limitations 

purposes to accountants for the first 

time in Massachusetts. 

In Kinney v. Metro Global Media, Inc., 

170 F. Supp. 2d 173 (D.R.I. 2001), 

MFS successfully argued on a case of 

first impression in the District of 

Rhode Island for the pleading standard 

for claims against an auditor under the 

Private Securities Litigation Reform 

Act of 1995. 

In Feiner v. SS&C Tech., Inc., 11 F. 

Supp. 2d 204 (D. Conn. 1998), MFS 

prevailed on an issue of first 

impression concerning the liability of a 

qualified independent underwriter for 

an initial public offering. 

App. 76

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 76 of 128
5

In Sclafani v. Barilla America, Inc., 

2004-03542 (N.Y. App. Div.), MFS 

successfully argued before the 

Supreme Court’s Appellate Division 

that General Business Law § 349(d) 

did not establish a complete defense to 

Plaintiff’s allegation that Barilla’s 

packaging misled consumers into 

believing the company’s pasta was 

made in Italy, obtaining a reversal of a 

trial court dismissal. 

In Adair v. Bristol Tech. Sys., Inc., 179 

F.R.D. 126 (S.D.N.Y. 1998), MFS 

prevailed on an issue of first 

impression in the Southern District of 

New York, successfully arguing that 

standing under the Securities Act of 

1933 was not limited to buyers who 

purchased directly on an initial public 

offering. The opinion was 

subsequently cited in decisions and 

secondary sources over 70 times.

App. 77

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 77 of 128
6

THE PARTNERS

BRIAN MURRAY, a partner, was admitted to the bars of Connecticut in 1990, 

the State of New York and the United States District Courts for the Southern 

and Eastern Districts of New York in 1991, the Second Circuit in 1997, the 

First and Fifth Circuits in 2000, and the Ninth Circuit in 2002. He received 

B.A. and M.A. degrees from the University of Notre Dame in 1983 and 1986, 

respectively. He received a J.D. degree, cum laude, from St. John’s University 

School of Law in 1990. At St. John’s, he was the Articles Editor of the ST.

JOHN’S LAW REVIEW. Mr. Murray co-wrote International Strategic 

Partnerships to Prosecute Securities Class Actions, Investment and Pensions 

Europe (May 2006); The Proportionate Trading Model: Real Science or Junk 

Science?, 52 CLEVELAND ST. L. REV. 391 (2004-05); The Accident of 

Efficiency: Foreign Exchanges, American Depository Receipts, and Space 

Arbitrage, 51 BUFFALO L. REV. 383 (2003); You Shouldn’t Be Required To 

Plead More Than You Have To Prove, 53 BAYLOR L. REV. 783 (2001); He 

Lies, You Die: Criminal Trials, Truth, Perjury, and Fairness, 27 NEW 

ENGLAND J. ON CIVIL AND CRIMINAL CONFINEMENT 1 (2001); Subject Matter 

Jurisdiction Under the Federal Securities Laws: The State of Affairs After 

Itoba, 20 MARYLAND J. OF INT’L L. AND TRADE 235 (1996); Determining 

Excessive Trading in Option Accounts: A Synthetic Valuation Approach, 23 U.

DAYTON L. REV. 316 (1997); Loss Causation Pleading Standard, NEW YORK 

LAW JOURNAL (Feb. 25, 2005); The PSLRA ‘Automatic Stay’ of Discovery, 

NEW YORK LAW JOURNAL (March 3, 2003); and Inherent Risk In Securities 

Cases In The Second Circuit, NEW YORK LAW JOURNAL (Aug. 26, 2004). He 

also authored Lifting the PSLRA “Automatic Stay” of Discovery, 80 N. DAK. L.

REV. 405 (2004); Aftermarket Purchaser Standing Under § 11 of the Securities 

Act of 1933, 73 ST. JOHN’S L. REV. 633 (1999); Recent Rulings Allow Section 

11 Suits By Aftermarket Securities Purchasers, NEW YORK LAW JOURNAL

(Sept. 24, 1998); and Comment, Weissmann v. Freeman: The Second Circuit 

Errs in its Analysis of Derivative Copyrights by Joint Authors, 63 ST. JOHN’S L.

REV. 771 (1989). 

 Mr. Murray was on the trial team that prosecuted a securities fraud case 

under Section 10(b) of the Securities Exchange Act of 1934 against Microdyne 

Corporation in the Eastern District of Virginia and he was also on the trial team 

that presented a claim under Section 14 of the Securities Exchange Act of 1934 

against Artek Systems Corporation and Dynatach Group which settled midway 

through the trial. 

App. 78

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 78 of 128
7

 Mr. Murray’s major cases include In re Eagle Bldg. Tech. Sec. Litig., 221 

F.R.D. 582 (S.D. Fla. 2004), 319 F. Supp. 2d 1318 (S.D. Fla. 2004) (complaint 

against auditor sustained due to magnitude and nature of fraud; no allegations 

of a “tip-off” were necessary); In re Turkcell Iletisim A.S. Sec. Litig., 209 

F.R.D. 353 (S.D.N.Y. 2002) (defining standards by which investment advisors 

have standing to sue); In re Turkcell Iletisim A.S. Sec. Litig., 202 F. Supp. 2d 8 

(S.D.N.Y. 2001) (liability found for false statements in prospectus concerning 

churn rates); Feiner v. SS&C Tech., Inc., 11 F. Supp. 2d 204 (D. Conn. 1998) 

(qualified independent underwriters held liable for pricing of offering); Malone 

v. Microdyne Corp., 26 F.3d 471 (4th Cir. 1994) (reversal of directed verdict for 

defendants); and Adair v. Bristol Tech. Systems, Inc., 179 F.R.D. 126 (S.D.N.Y. 

1998) (aftermarket purchasers have standing under section 11 of the Securities 

Act of 1933). Mr. Murray also prevailed on an issue of first impression in the 

Superior Court of Massachusetts, in Cambridge Biotech Corp. v. Deloitte and 

Touche LLP, in which the court applied the doctrine of continuous 

representation for statute of limitations purposes to accountants for the first 

time in Massachusetts. 6 Mass. L. Rptr. 367 (Mass. Super. Jan. 28, 1997). In 

addition, in Adair v. Microfield Graphics, Inc. (D. Or.), Mr. Murray settled the 

case for 47% of estimated damages. 

 Mr. Murray served as a Trustee of the Incorporated Village of Garden City 

(2000-2002); Commissioner of Recreation for Garden City (2001-2002); 

Commissioner of Police for Garden City (2000-2001); Member, Sports Law 

Committee, Association of the Bar for the City of New York, 1994-1997; and 

is currently a Member, Litigation Committee, Association of the Bar for the 

City of New York, 2003-present; and Member, New York State Bar 

Association Committee on Federal Constitution and Legislation, 2005-present. 

 Mr. Murray has been a panelist at CLEs sponsored by the Federal Bar 

Council and the Institute for Law and Economic Policy, at the GermanAmerican Lawyers Association Annual Meeting in Frankfurt, Germany, and at 

“‘Class Action’ Etutela Internazionale Degli Investmenti Finanziari” in 

Vicenzia, Italy. 

MARVIN L. FRANK, the managing partner, was admitted to bars of New 

York, New Jersey, and the United States District Court for the District of New 

Jersey in 1991, the District of Nebraska in 2005, the United States District 

Courts for the Southern and Eastern Districts of New York in 1992, the Second 

Circuit in 1998, the Seventh Circuit in 1999, the United States Supreme Court 

in 2004, the Eastern District of Michigan in 2006, and the Northern District of 

App. 79

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 79 of 128
8

Texas in 2006. Mr. Frank graduated with a B.A. degree from The City College 

of New York in 1969, a M.B.A. degree from Bernard M. Baruch College in 

1974, and received his J.D. degree, magna cum laude, from New York Law 

School in 1991. At New York Law School, he received the Kaplun Foundation 

Award For Academic Excellence. 

 Mr. Frank’s major cases include In re General Motors Corp. Sec. Litig., 

05-CV-8088 (S.D.N.Y.), in which the Court, before appointing the firm lead 

counsel, stated “we know Mr. Frank very well, so they are both esteemed and 

experienced attorneys in these matters, and I don’t think anybody could go 

wrong with either one of them to be honest with you”; Sclafani v. Barilla 

America, Inc., 2004-03542 (N.Y. App. Div.), in which Mr. Frank successfully 

argued before the Supreme Court’s Appellate Division that General Business 

Law § 349(d) did not establish a complete defense to Plaintiff’s allegation that 

Barilla’s packaging misled consumers into believing the company’s pasta was 

made in Italy, obtaining a reversal of a trial court dismissal; Miller v. Bonmati, 

Del. Ch., C.A. No. 15849, Lamb, V.C. (Mar. 18, 1999), in which the Court 

stated “I am quite pleased by the work that was done by the plaintiffs’ counsel. 

They seem to have done a very professional job of dealing with a difficult 

situation and have obtained, from everything I can ascertain from the record in 

front of me, quite a beneficial settlement that gives an opportunity for this 

situation to work itself out.”; In re JWP Inc. Sec. Litig. (S.D.N.Y.) ($40 

million); In re Marion Merrell Dow Inc. Sec. Litig. (W.D. Mo.) ($14 million); 

In re PictureTel Inc. Sec. Litig. (D. Mass) ($14 million); In re ContiFinancial 

Sec. Litig. (S.D.N.Y.) ($5.5 million); In re Quintiles Transnational Sec. Litig. 

(M.D.N.C.) ($3 million). 

 Mr. Frank is the firm’s representative on the Executive Committee of the 

National Association of Shareholder and Consumer Attorneys (NASCAT). He 

is Vice President of the Institute for Law and Economic Policy (ILEP), a public 

policy research and educational foundation – a think tank – established to 

preserve, study, and enhance access to the civil justice system by shareholders 

and consumers and Vice President of the Emerald Green Property Owners 

Association in Rock Hill, New York. 

 Mr. Frank co-wrote Staying Derivative Actions Pursuant to PSLRA and 

SLUSA, NEW YORK LAW JOURNAL (Oct. 21, 2005) and the SECURITIES 

REFORM ACT LITIGATION REPORTER, Vol. 20, No. 3 (Dec. 2005). Mr. Frank 

has been a panelist at the American Banker’s Association Operations 

Conference for Securities, Brokerage & Trust in Memphis, Tennessee and a 

App. 80

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 80 of 128
9

panelist at the Magenta One Conference for Securities and Trust on the Isle of 

Jersey, United Kingdom. 

JACQUELINE SAILER, a partner, was admitted to the bars of Delaware in 

1990, the United States District Court for the District of Delaware in 1991, the 

State of New York and the United States District Courts for the Southern and 

Eastern Districts of New York in 1996, the United States Court of Appeals for 

the Sixth Circuit and the United States District Court for the District of 

Colorado in 1997, the United States Court of Appeals for the Second Circuit in 

1998, and the United States Supreme Court in 2005. She graduated with 

honors from Smith College with a B.A. degree in 1985. She received a J.D. 

degree from St. John’s University School of Law in 1990. Ms. Sailer is fluent 

in French. She is a member of the Federal Bar Council; member, National 

Association of Consumer Advocates; and member, Association of the Bar for 

the City of New York, including the Sex and Law Committee, 1996-1999. Ms. 

Sailer is the co-author of Loss Causation Pleading Standards, NEW YORK LAW 

JOURNAL (Feb. 25, 2005). 

 Ms. Sailer was responsible for the recovery of $40 million worth of 

benefits for a plaintiff class of wireless consumers in a consumer class action, 

Naevus Int’l, Inc. v. AT&T Corp. Her major reported cases as lead counsel 

include Naevus Intl., Inc. v. AT&T Corp., 713 N.Y.S.2d 642 (Sup. Ct. New 

York Co. 2000) (establishing limits on the reach of the Federal 

Communications Act on state consumer fraud claims), in which she 

successfully argued against a motion to dismiss on behalf of a class of current 

and former subscribers to AT&T’s wireless service; and a federal securities 

class action, Kinney v. Metro Global Media, Inc., 170 F. Supp. 2d 173 (D.R.I. 

2001) (addressing the pleading standard for fraud under the Private Securities 

Litigation Reform Act of 1995 for claims against an auditor, an issue of first 

impression in the District of Rhode Island), in which she successfully argued 

and opposed an auditor’s motion to dismiss claims under Section 10(b) of the 

Securities Exchange Act of 1934; Baffa v. Donaldson, Lufkin & Jenrette 

Securities Corp., 999 F. Supp. 725 (S.D.N.Y. 1998) (denying underwriters’ 

motion to dismiss securities fraud claims). At the fairness hearing in Metro 

Global, Judge Lisi expressed an “appreciation for how difficult this case was 

for all sides, for how hotly contested many of the issues in this case were from 

the get-go and how reaching a settlement, given all of those considerations, was 

particularly difficult; so I commend all of you for persevering in the efforts that 

you made toward reaching a settlement . . . [and] for achieving what I find to be 

a fair, adequate and reasonable result[.]” 

App. 81

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 81 of 128
10

 Ms. Sailer’s trial experience includes serving as second chair in the 

prosecution of a breach of contract case that was tried successfully before a 

jury in the District of Delaware. 

 Currently Ms. Sailer’s case responsibilities include serving as lead counsel 

and co-chairperson of the executive committee in securities fraud cases brought 

against Merrill Lynch & Co. based on fraudulent analyst reports, pending in the 

Southern District of New York. 

LAWRENCE D. MCCABE, a partner, was admitted to the bars of the State of 

New York and the United States District Court for the Southern District of New 

York in 1995, and the United States District Court for the Eastern District of 

New York in 2001. Mr. McCabe received a B.A. degree, cum laude, from Iona 

College in 1984. He received his J.D. degree, cum laude, from Fordham 

University School of Law in 1994. At Fordham, he was a Notes & Articles 

editor of the Law Review. Upon graduation from Fordham, he was admitted 

into the Order of the Coif. 

 Mr. McCabe focuses his practice primarily on class actions on behalf of 

defrauded investors, derivative actions on behalf of corporate shareholders, as 

well as complex commercial litigation. His extensive securities fraud litigation 

experience includes significant settlements for class members in In re 

Computer Associates 2002 Class Action Sec. Litig. (common stock valued at 

approximately $165 million); Scheiner v. i2 Tech., Inc. (N.D. Tex.) ($87.75 

million); In Re Lason, Inc. Sec. Litig. (E.D. Mich.) ($12.68 million); In re 

Berkshire Realty Co. Shareholder Litig. (Del. Ch.) ($6.25 million); Dorchester 

Investors v. Peak TrENDS Trust (S.D.N.Y.) ($4 million). 

 Upon graduation from college, Mr. McCabe worked as a securities trader, 

specializing in NASDAQ securities. After law school, Mr. McCabe practiced 

commercial litigation with Skadden, Arps, Slate, Meagher & Flom LLP. Mr. 

McCabe has been an active member of the plaintiffs bar since 2002 when he 

became associated with Milberg Weiss Hynes & Lerach LLP and later with 

Lerach Coughlin Stoia Geller Rudman & Robbins LLP. 

App. 82

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 82 of 128
11

THE ASSOCIATES

GREGORY B. LINKH, an associate, was admitted to the bars of the State of 

New York and the United States District Court for the Southern and Eastern 

Districts of New York in 2000. He graduated from the State University of New 

York at Binghamton with a B.A. degree in 1996 and received a J.D. degree 

from the University of Michigan in 1999. Mr. Linkh is the co-author of 

Inherent Risk In Securities Cases In The Second Circuit, NEW YORK LAW 

JOURNAL (Aug. 26, 2004); Staying Derivative Action Pursuant to PSLRA and 

SLUSA, NEW YORK LAW JOURNAL (Oct. 21, 2005) and the SECURITIES 

REFORM ACT LITIGATION REPORTER, Vol. 20, No. 3 (Dec. 2005). Prior to 

joining Murray, Frank & Sailer, Mr. Linkh was associated with the law firms 

Dewey Ballantine LLP and Pomerantz Haudek Block Grossman & Gross LLP.

THOMAS J. KENNEDY, an associate, was admitted to the bars of New York 

and the United States District Courts for the Southern and Eastern Districts of 

New York in 1996. He received a J.D. degree in 1995 from St. John’s 

University School of Law and a B.S. in Accounting from Miami University in 

1992. Mr. Kennedy passed the CPA exam in 1998. 

BRIDGET V. HAMILL, an associate, was admitted to the bars of the State of 

New Jersey in 2001 and the State of New York in 2005. She received a J.D. 

degree in 2000 from Rutgers School of Law and a B.A. from Douglass College 

of Rutgers University, where she was one of twelve members of her graduating 

class in the Douglass Scholars Academic Scholarship Program, in 1985. Her 

primary area of practice is securities class action. She is currently working on 

In re Williams Sec. Litig. (N.D. Okla.). Prior to joining Murray, Frank & 

Sailer, Ms. Hamill was law clerk to U.S. Magistrate Judge Mark Falk in the 

District of New Jersey. While attending law school, she was an employee 

stock options/stock purchase plan administrator in New York City. Prior to 

entering law school, Ms. Hamill was a health care information systems 

manager. 

 

BRADLEY P. DYER, an associate, was admitted to the bars of the State of 

New York and the United States District Courts for the Southern and Eastern 

Districts of New York in 2003. He received a B.A. degree in Government & 

Law in 1999, from Lafayette College, and received a J.D. degree from Fordham 

University School of Law in 2002. His primary area of practice is securities 

class action litigation. 

App. 83

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 83 of 128
12

BRIAN BROOKS, an associate, was admitted to the bar of the State of 

Louisiana in 2003. Mr. Brooks received a B.A. from Northwestern State 

University in 1998 and a J.D. from Washington and Lee University in 2002. 

Prior to joining Murray, Frank & Sailer he was associated with the firm of 

Percy, Smith & Foote, where his primary area of practice was antitrust law. 

OLGA FORT, an associate, was admitted to the bar of the State of New York 

in 2005. She graduated from Fordham University School of Law with a Master 

of Laws degree in Banking, Corporate and Finance Law in 2004. She received 

a J.D. degree in 1998 from the Moscow Institute of Economics and Law and a 

B.A. degree in Commerce and Marketing from Moscow University for the 

Humanities in 1995. She attended the Russian State Institute of Intellectual 

Property from 1998 to 2000. She authored “International Exhaustion of 

Intellectual Property Rights,” PATENT AFFAIRS, #8, Moscow, 2000 and 

Exhaustion of Intellectual Property Rights, RUSSIAN STATE INSTITUTE OF 

INTELLECTUAL PROPERTY JOURNAL, Moscow, 1999 (Thesis for and 

Presentation at the Conference on Legal Protection, Commercial Use and 

Problems associated with Intellectual Property organized by the Russian State 

Agency on Patents and Trademarks, December 16-17, 1999). While attending 

law school, Mrs. Fort clerked for a Judge in Moscow Military Court. She 

worked as a legal counsel for the Savings Bank of the Russian Federation 

where she specialized in banking, finance, and corporate law. Prior to joining 

Murray, Frank & Sailer, Mrs. Fort was associated with the Law Offices of Peter 

E. Finning, where her primary area of practice was insurance defense litigation. 

She is a member of the American Bar Association and New York State Bar 

Association. 

SCOTT H. LEVY, an associate, was admitted to the New York bar in 2006. 

He received a B.A. degree in History from the University of California at 

Berkeley in 2001 and a J.D. degree from the Fordham University School of 

Law in 2005. At Fordham, he was a staff member of the FORDHAM URBAN 

LAW JOURNAL. 

OF COUNSEL

JAMES M. MARRIN, JR. was admitted to the bars of the State of New York 

in 2001 and the United States District Courts for the Southern and Eastern 

Districts of New York in 2005. He attended New York Law School on an 

academic scholarship and graduated cum laude in 2000. He graduated from 

Georgetown University with a B.A. in government in 1993. Mr. Marrin served 

App. 84

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 84 of 128
13

as an Assistant District Attorney for the Kings County District Attorney from 

2000 to 2003, prosecuting felonies and misdemeanors. From 2003 to 2005, he 

was in private practice, specializing in trusts and estates, real estate, and 

criminal defense.

ANGELA M. FINLAY was admitted to the Washington State bar in 2000. She 

received a J.D. from New York Law School in 1999 and a B.A. from Loyola 

College in Maryland in 1991. She holds a Certificate in Advanced Accounting 

from the University of Washington Business School. 

CHARLES CLAY CARROLL was admitted to the bars of the State of Alabama 

and the United States District Courts for the Northern, Middle, and Southern 

Districts of Alabama in 2003, and the bar of the State of Kentucky in 2005. He 

earned his J.D. degree in 2002 from the University of Alabama, where he 

received the Balch & Bingham/Harold A. Bowron Award for Academic 

Achievement in Labor and Employment Law. After graduating from the 

University of Alabama with B.A. degrees in Political Economics (1994) and 

Geography (1995), Mr. Carroll earned graduate degrees in International 

Business Management from Schiller University and Heidelberg University in 

Germany in 1996; Public Administration from the University of Alabama in 

1998; and Mediation and Conflict Resolution from Erasmus University in The 

Netherlands in 1999. 

NEIL GANDHI was admitted to the New Jersey State bar in 2005 and the 

New York State bar in 2006. He received a B.A. degree in Economics and 

History from New York University in 2001 and a J.D. degree from Fordham 

Law School in 2005. At Fordham, he was an associate editor of the 

Fordham Intellectual Property, Media, and Entertainment Law Journal. 

While in law school, Mr. Gandhi interned at the New York Stock Exchange. 

App. 85

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 85 of 128
EXHIBIT B

App. 86

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 86 of 128
FIRM PROFILE 

PENNSYLVANIA OFFICE CALIFORNIA OFFICE

280 King of Prussia Road 2125 Oak Grove Road, Suite 120 

Radnor, PA 19087 Walnut Creek, CA 94598 

Telephone: (610) 667.7706 Telephone: (925) 945.0770 

Facsimile: (610) 667.7056 Facsimile: (925) 945.8792 

chiffrin Barroway Topaz & Kessler, LLP, specializes in representing shareholders and 

consumers in complex class action litigation in state and federal courts throughout the 

United States. Since our inception, SBTK has recovered billions of dollars on behalf of 

defrauded shareholders and aggrieved consumers. The firm is led by its senior partners, Richard 

S. Schiffrin, Andrew L. Barroway, Marc A. Topaz, and David Kessler, with assistance from 

partners Stuart L. Berman, Katharine M. Ryan, Gregory M. Castaldo, Michael K. Yarnoff, 

Joseph H. Meltzer, Darren J. Check, Tobias L. Millrood, Andrew L. Zivitz, Sean M. Handler, 

John A. Kehoe, Lee D. Rudy, Kay E. Sickles, Eric L. Zagar and numerous experienced 

associates and staff. 

S

SBTK focuses on the prosecution of securities fraud actions and derivative and transactional 

litigation brought against public companies, their officers and directors, and their auditors and 

investment banking firms. In addition, SBTK represents employees in ERISA/401 K actions, as 

well as individuals and institutions in consumer litigation, product liability and antitrust actions. 

Throughout our history, SBTK has represented various private institutional investors, including 

public and Taft-Hartley pension funds, hedge funds, mutual fund managers, investment advisors, 

and insurance companies, as well as thousands of individual investors in securities fraud class 

actions. Currently, SBTK is serving as Lead or Co-Lead Counsel in several high profile 

securities class actions against companies such as Tyco, Delphi Corp., Tenet Healthcare, Sprint 

Corp. and PNC Bank. 

App. 87

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 87 of 128
Noteworthy Achievements 

During the firm’s successful history, SBTK has recovered billions of dollars for defrauded 

stockholders and consumers. The following are among the firm’s notable achievements: 

In re Tenet Healthcare Corp. Securities Litigation, 

No. CV-02-8462-RSWL (Rx) (C.D. Cal. 2002): 

SBTK serves as co-lead counsel on behalf of the State of New Jersey and its Division of 

Investment against Tenet Healthcare Corp. and certain of its former officers and directors. 

Among other things, the Lead Plaintiff alleges that defendants made a series of materially false 

or misleading statements and omissions concerning Tenet’s business model and financial health 

from January 11, 2000 through November 7, 2002. After defeating defendants’ motions to 

dismiss and performing substantial document and deposition discovery, a partial settlement 

has been reached in the amount of $216.5 million in cash which will be submitted for 

preliminary approval by the Court in the coming weeks. The Partial Settlement is being funded 

primarily by Tenet and its insurance carriers ($215 million), with personal contributions in the 

aggregate amount of $1.5 million being made by two of Tenet’s former officers, Jeffrey 

Barbakow and Thomas Mackey. In addition to the substantial cash recovery, the prosecution of 

this action has played a prominent role in Tenet’s initiation of sweeping corporate governance 

reforms which have led to Tenet being ranked by various institutional rating entities as among 

the best corporations in America for its corporate governance. The case will continue against 

KPMG as the Court denied KPMG’s motion to dismiss the action in its entirety in December, 

2005. 

In re AremisSoft Corp. Securities Litigation, 

C.A. No. 01-CV-2486 (D.N.J. 2002): 

SBTK is particularly proud of the results recently achieved in this case before the Honorable Joel 

A. Pisano. This case was exceedingly complicated, as it involved the embezzlement of hundreds 

of millions of dollars by former officers of the Company, who are now fugitives. In settling the 

action, SBTK, as sole Lead Counsel, assisted in reorganizing the Company as a new Company to 

allow for it to continue operations, while successfully separating out the securities fraud claims 

and the bankrupt Company’s claims into a litigation trust. The Settlement, which was recently 

approved, calls for the class to receive the majority of the equity in the new Company, as well as 

their pro rata share of any amounts recovered by the litigation trust. The Court-appointed 

cotrustees, Joseph P. LaSala, Esq. and Fred S. Zeidman, have retained SBTK to continue 

prosecuting the actions on behalf of the litigation trust. In this capacity, we have filed an action 

in the Isle of Man, and have successfully frozen more than $200 million of stolen funds from one 

of the fugitives, and are in the process of attempting to recover the money on behalf of the trust. 

In addition, we are continuing to litigate the trust’s claims against the remaining fugitive. 

In re The Interpublic Group of Companies Securities Litigation, 

No. 02 Civ. 6527 (S.D.N.Y. 2002): 

SBTK served as sole Lead Counsel in this action on behalf of an institutional investor and 

recently received final approval of a settlement consisting of $20 million in cash and 6,551,725 

shares of IPG common stock with expected distribution by early summer 2005. As of February 

2005, the stock had an approximate value of $87 million, resulting in a total settlement value of 

App. 88

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 88 of 128
approximately $107 million. In granting its approval, the Court praised SBTK for acting 

responsibly and noted the firm’s professionalism, competence and contribution to achieving such 

a favorable result. 

In re Digital Lightwave, Inc. Securities Litigation, 

Consolidated Case No. 98-152-CIV-T-24E (M.D. Fla. 1999): 

The firm served as Co-Lead Counsel in one of the nation’s most successful securities class 

actions. After extensive litigation and negotiations, a settlement consisting primarily of stock 

ultimately grew to a value of over $170 million between the time in which the settlement was 

negotiated and the time at which it was distributed. SBTK took on the primary role in negotiating 

the terms of the equity component, insisting that the class have the right to share in any upward 

appreciation in the value of the stock after the settlement was reached. This recovery represented 

an astounding approximately two hundred percent (200%) of class members’ losses. We believe 

that this represents the largest percentage recovery for shareholders in securities class action 

history. 

In re Initial Public Offering Securities Litigation, 

Master File No. 21 MC 92 (SAS) (S.D.N.Y. Dec. 12, 2002): 

SBTK holds a prominent position as an Executive Committee member in this action. Of the sixty 

plaintiffs firms which originally filed actions in these coordinated proceedings, SBTK was one of 

only six selected to serve on the Executive Committee. The coordinated actions, which have 

been filed against 309 separate issuers of publicly traded securities, challenge the legality of the 

practices which accompany the allocations of shares in initial public offerings. In addition to 

suing the issuers of such securities, the 309 coordinated actions also name as defendants the 

primary investment banking firms which underwrote the offerings. This case, which has received 

a great deal of national and international media attention, is widely considered the largest 

securities class action litigation in history. At the present time, the Court has preliminarily 

approved a $1 billion settlement with the insurers and their officers and directors. The case is 

proceeding against the underwriting defendants. 

In re Global Crossing, Ltd. ERISA Litigation, 

No. 02 Civ. 7453 (S.D.N.Y. 2004): 

SBTK served as Co-Lead Counsel in this complex and high-profile action which alleged that 

certain directors and officers of Global Crossing, a former high-flier of the late 1990’s tech stock 

boom, breached their fiduciary duties under the Employee retirement Income Security Act of 

1974 to certain company-provided 401(k) plans and their participants. These breaches 

surrounded the plans’ alleged imprudent investment in Global Crossing stock during a 

time when defendants knew, or should have known, that the company was facing imminent 

bankruptcy. A settlement of plaintiffs’ claims restoring $79 million to the Plans and their 

participants was approved in November 2004. At the time, this represented the largest recovery 

received in a company stock ERISA class action. 

App. 89

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 89 of 128
In re Honeywell International ERISA Litigation, 

No. 03-1214 (DRD) (D.N.J. 2004): 

SBTK is serving as Lead Counsel in a breach of fiduciary duty case under ERISA against 

Honeywell International, Inc. and certain fiduciaries of Honeywell pension plans. The suit 

alleges that Honeywell and the individual fiduciary defendants, allowed Honeywell’s 401(k) 

plans and their participants to imprudently invest significant assets in company stock, despite 

that defendants knew, or should have known, that Honeywell’s stock was an imprudent 

investment due to undisclosed, wide-ranging problems stemming from a consummated 

merger with Allied Signal and a failed merger with General Electric. A settlement f plaintiffs’ 

claims, which includes a $14 million payment to the plans and their affected participants, and 

significant structural relief affording participants much greater leeway in diversifying their 

retirement savings portfolios, is currently pending court approval. 

In re Remeron Antitrust Litigation, 

No. 02-CV-2007 (D.N.J. 2004): 

SBTK is Co-Lead Counsel in an action challenging Organon, Inc.’s filing of certain patents and 

patent infringement lawsuits as an abuse of the Hatch-Waxman Act, and an effort to unlawfully 

extend their monopoly in the market for Remeron. Specifically, the lawsuit alleges that 

defendants violated state and federal antitrust laws in their efforts to keep competing products 

from entering the market, and seeks damages sustained by consumers and third-party payors. 

After lengthy litigation, including numerous motions and over 50 depositions, the matter settled 

for $36 million. The settlement is pending final approval by the court. 

Henry v. Sears, et al., 

Case No. 98 C 4110 (N.D. Ill. 1999): 

The firm served as Co-Lead Counsel for one of the largest consumer class actions in history, 

consisting of approximately 11 million Sears credit card holders whose interest rates were 

improperly increased in connection with the transfer of the credit card accounts to a national 

bank. SBTK successfully negotiated a settlement representing approximately 66% of all class 

members’ damages, thereby providing a total benefit exceeding $156 million. All $156 million 

was distributed automatically to the Class members, without the filing of a single proof of claim 

form. In approving the settlement, the District Court stated: “. . . I am pleased to approve 

the settlement. I think it does the best that could be done under the circumstances on behalf of 

the class. . . . The litigation was complex in both liability and damages and required both 

professional skill and standing which class counsel demonstrated in abundance.” 

Jordan v. State Farm Insurance Company, 

Case No. 97 CH 11 (Cir. Ct., McLean County, Ill. 1998): 

Plaintiffs alleged that State Farm had engaged in fraudulent sales practices known as “churning,” 

and marketing and selling “vanishing premium” policies that do not actually “vanish.” After 

several years of discovery, motion practice and settlement negotiations, SBTK, as Liaison 

Counsel, successfully resolved the action for $225 million in cash, dividend enhancements and 

other monetary benefits for current and former State Farm policyholders. 

App. 90

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 90 of 128
In re Liberate Technologies Securities Litigation, 

No. C-02-5017 (MJJ) (N.D. Cal. 2005): 

Plaintiffs alleged that Liberate engaged in fraudulent revenue recognition practices to artificially 

inflate the price of its stock, ultimately forcing it to restate its earnings. As sole Lead Counsel, 

SBTK successfully negotiated a $13.8 million settlement, which represents almost 40% of the 

damages suffered by the class. In approving the settlement, the district court complimented Lead 

Counsel for its “extremely credible and competent job.” 

In re InfoSpace, Inc. Securities Litigation, 

Master File No. C-01-0913-Z (D. Wash. 2001): 

SBTK served as Co-Lead Counsel on behalf of plaintiffs alleging that InfoSpace and certain of 

its officers and directors overstated revenues by using improper accounting methods, overstated 

the demand for InfoSpace’s wireless services, misstated InfoSpace’s financial relationships with 

major customers, and falsely represented that InfoSpace would receive subscription fees from 

users of web-enabled cell phones. After two years of hard-fought litigation and complex 

mediation, a settlement of $34.3 million was obtained for members of the class. 

In re Riverstone Networks, Inc. Securities Litigation, 

Case No. CV-02-3581 (N.D. Cal. 2002): 

SBTK served as sole lead counsel on behalf of plaintiffs alleging that Riverstone and certain of 

its officers and directors sought to create the impression that the Company, despite the industrywide downturn in the telecom sector, had the ability to prosper and succeed and was actually 

prospering. In that regard, plaintiffs alleged that defendants issued a series of false and 

misleading statements concerning the Company’s financial condition, sales and prospects, and 

used inside information to personally profit. After extensive litigation, the parties entered into 

formal mediation with the Honorable Charles Legge (Ret.). Following five months of mediation, 

the parties reached a settlement of $18.5 million which has been preliminarily approved by the 

Court. 

In re Assisted Living Concepts, Inc. Securities Litigation, 

Lead Case No. 99-167-AA (D. Or. 1999): 

SBTK served as Co-Lead Counsel and was instrumental in obtaining a $30 million recovery for 

class members from the Company, its executive officers and directors, and several underwriters 

for their role in an alleged complex accounting fraud involving the use of a purportedly 

independent joint venture to absorb the Company’s start-up losses. Even after this $30 million 

recovery, through counsel’s efforts, an additional $12.5 million was obtained from the auditors 

providing for a total recovery of $42.5 million. 

Wanstrath v. Doctor R. Crants, et al., 

No. 99-1719-111 (Tenn. Chan. Ct., 20th Judicial District, 1999): 

SBTK served as Lead Counsel in a derivative action filed against the officers and directors of 

Prison Realty Trust, Inc., challenging the transfer of assets from the Company to a private entity 

owned by several of the Company’s top insiders. Numerous federal securities class actions were 

pending against the Company at this time. Through the derivative litigation, the Company’s top 

management was ousted, the composition of the Board of Directors was significantly improved, 

App. 91

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 91 of 128
and important corporate governance provisions were put in place to prevent future abuse. Mr. 

Schiffrin, in addition to achieving these desirable results, was able to personally effectuate 

a global settlement of all pending litigation against the backdrop of an almost certain bankruptcy. 

The case was resolved in conjunction with the federal securities cases for the payment of 

approximately $50 million by the Company’s insurers and the issuance of over 46 million shares 

to the class members. 

In re Cumulus Media Inc. Securities Litigation, 

Lead Case No. 00-C-391 E.D. Wis. 2000): 

SBTK served as Lead Counsel and successfully litigated the action and negotiated a settlement 

of $13 million in cash and 240,000 shares of freely tradable stock in Cumulus Media, which 

traded for approximately $19 per share, for a total settlement value of $17.5 million at the time 

the settlement was approved by the Court. 

App. 92

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 92 of 128
PARTNERS 

RICHARD S. SCHIFFRIN, founding partner of the firm, is licensed to practice law in 

Illinois and Pennsylvania, and has been admitted to practice before numerous United States 

District Courts. In his seven years of practice with the Office of the Public Defender of Cook 

County, Illinois, Mr. Schiffrin represented hundreds of clients in both bench and jury trials, as 

well as appeals. Mr. Schiffrin has also taught legal writing and appellate advocacy at John 

Marshall Law School and has served as a faculty member at numerous legal seminars, including 

the Annual Institute on Securities Regulation, NERA: Finance, Law & Economics — Securities 

Litigation Seminar, the Tulane Corporate Law Institute, and the CityBar Center for CLE (NYC): 

Ethical Issues in the Practice of Securities Law. 

Most recently, Mr. Schiffrin spoke at the MultiPensions 2005 Conference in Amsterdam, 

Netherlands; the Public Funds Symposium 2005 in Washington, D.C.; the European Pension 

Symposium in Florence, Italy; and the Pennsylvania Public Employees Retirement Summit 

(PAPERS) in Harrisburg, Pennsylvania. Mr. Schiffrin oversees all aspects of litigation on behalf 

of the firm. Mr. Schiffrin has been recognized for his expertise in numerous cases, including 

most prominently: 

In re Tenet Healthcare Corp., 02-CV-8462 (C.D. Cal.): 

Schiffrin Barroway Topaz & Kessler served as Co-Lead Counsel on behalf of plaintiffs, alleging 

that Tenet Healthcare and certain of its officers and directors defrauded Medicare out of 

hundreds of millions of dollars, materially overstated Tenet's revenues, and performed 

unnecessary cardiac surgeries to increase the Company's earnings. After three years of hardfought litigation and complex mediation, Schiffrin Barroway Topaz & Kessler helped obtain a 

settlement involving a $216.5 million payment from Tenet and the Company's former CEO and 

COO, and specific corporate governance improvements. 

In re AremisSoft Corp. Securities Litigation, C.A. No. 01-CV-2486 (D.N.J. 2002):

Schiffrin Barroway Topaz & Kessler is particularly proud of the results achieved in this case 

before the Honorable Joel A. Pisano. This case was exceedingly complicated, as it involved the 

embezzlement of hundreds of millions of dollars by former officers of the Company, some of 

whom remain fugitives. In settling the action, Schiffrin Barroway Topaz & Kessler, as sole Lead 

Counsel, assisted in reorganizing the Company as a new Company which allowed for it to 

continue operations, while successfully separating out the securities fraud claims and the 

bankrupt Company’s claims into a litigation trust. The Settlement, approved by the court, 

enabled the class to receive the majority of the equity in the new Company, as well as their pro 

rata share of all amounts recovered by the litigation trust. The court-appointed co-trustees, 

Joseph P. LaSala, Esq. and Fred S. Zeidman, retained Schiffrin Barroway Topaz & Kessler to 

further assist with prosecuting the actions on behalf of the litigation trust. 

After filing an action in the Isle of Man, where the trust successfully froze more than $200 

million of stolen funds from one of the fugitives, the trust achieved a settlement of this action for 

$200 million, which was returned to the United States and paid to the trust. Recently, the trust 

App. 93

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 93 of 128
commenced another action in Cyprus, where it obtained a Mareva injunction and interim 

ancillary relief against bank accounts and assets owned and/or controlled by the other principal 

wrongdoer. 

Thus far, counsel on behalf of the trust and its beneficiaries have achieved settlements with the 

Company and certain of its directors and officers as well as the Company’s auditors, lawyer and 

underwriters, for a total of more than $250 million. The beneficiaries of the trust have already 

received in excess of 28% of their recognized losses. 

Henry v. Sears, et al., Case No. 98 C 4110 (N.D. Ill. 1999):

Schiffrin Barroway Topaz & Kessler served as Lead Counsel on behalf of the largest class of 

credit card holders in history. At stake was the right of Sears and its newly formed affiliate, Sears 

National Bank (“SNB”), to retroactively increase the interest rates on eleven million credit card 

accounts with outstanding balances resulting from purchases made prior to the accounts being 

transferred to SNB. Schiffrin Barroway Topaz & Kessler alleged that such conduct violated the 

Truth-in-Lending Act, the National Banking Act and state consumer fraud statutes. After 

extensively litigating various aspects of liability, an additional nine months were then spent 

determining damages. The extraordinary complexity of the damage calculations required Mr. 

Schiffrin and experts from both parties to develop, test and utilize a novel computer model to 

ascertain total damages for the class and individualized damages for each class member. 

Ultimately, Mr. Schiffrin and his partner, Mr. Kessler, were able to negotiate a $156 million 

settlement, which represented approximately 66% of total damages. In approving the settlement, 

District Court Judge Leinenwebber of the Northern District of Illinois stated: 

. . . I am pleased to approve the settlement. I think it does the best that could be done under the 

circumstances on behalf of the class. . . . The litigation was complex in both liability and 

damages and required both professional skill and standing which class counsel demonstrated in 

abundance. 

The entire settlement fund of $156 million was distributed without the filing of a single proof of 

claim form by any class member. 

Wanstrath v. Doctor R. Crants, et al., C.A. No. 99-1719-III (Tenn. Chan. Ct., 20th Judicial 

District, 1999):

Schiffrin Barroway Topaz & Kessler served as Lead Counsel in a derivative action filed against 

the officers and directors of Prison Realty Trust, Inc., challenging the transfer of assets from the 

Company to a private entity owned by several of the Company’s top insiders. Numerous federal 

securities class actions were pending against the Company at this time. Through the derivative 

litigation, the Company’s top management was ousted, the composition of the Board of Directors 

was significantly improved and important corporate governance provisions were put in place to 

prevent future abuse. Mr. Schiffrin, in addition to achieving these desirable results, was able to 

personally effectuate a global settlement of all pending litigation against the backdrop of an 

almost certain bankruptcy. The case was resolved in conjunction with the federal securities cases 

App. 94

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 94 of 128
for the payment of approximately $50 million by the Company’s insurers and the issuance of 

over 46 million shares to the class members. 

Jordan v. State Farm Insurance Company, Case No. 97 CH 11 (Cir. Ct., McLean County, Ill. 

1998):

Schiffrin Barroway Topaz & Kessler brought a claim on behalf of multiple plaintiffs alleging 

that State Farm had engaged in fraudulent sales practices by “churning” policies and marketing 

and selling “vanishing premium” policies that never “vanished.” After several years of 

discovery, motion practice and settlement negotiations, Mr. Schiffrin played a critical role in 

resolving the action for $225 million in cash, dividend enhancements and other monetary 

benefits for current and former State Farm policyholders. Schiffrin Barroway Topaz & Kessler 

also has achieved substantial settlements in 20 additional cases alleging fraudulent sales practices 

by various insurance companies. 

Mr. Schiffrin has also represented defrauded shareholders and companies in complex class and 

derivative actions, including the following: 

Huscher v. Curley, et al., No. 00 Civ. 21379 (Mich. Cir. Ct., 2000) (In re Sotheby’s Holdings, 

Inc. Derivative Litigation):

Schiffrin Barroway Topaz & Kessler served as Lead Counsel in a derivative action arising out of 

Sotheby’s alleged antitrust price fixing conspiracy with auction house rival Christie’s 

International PLC. A multi-million dollar settlement was negotiated by Mr. Schiffrin whereby 

Diana Brooks (Sotheby’s President at the time of the alleged wrongdoing) agreed to relinquish 

all of her Sotheby’s stock options, and the Company’s insurance carrier made a substantial 

monetary payment to the Company. In addition, significant changes in the Company’s top 

management and Board of Directors were achieved in conjunction with the settlement of the 

litigation. 

ANDREW L. BARROWAY, managing partner of the firm, received his law degree from the 

University of Pennsylvania Law School, where he was a member of the ABA Negotiation team. 

He is licensed to practice law in Pennsylvania and New Jersey, and has been admitted to practice 

before the United States District Court for the Eastern District of Pennsylvania. Mr. Barroway 

frequently lectures on securities class action and lead plaintiff issues, and recently spoke at the 

2005 Institutional Investor Hedge Fund Workshop in New York City and the Public Funds 

Summit 2005 in Phoenix, Arizona. Mr. Barroway has been actively involved in all aspects of 

litigation on behalf of the firm, and co-manages the firm’s securities department. Of his 

numerous successful representations of shareholders, the following stand out as exceptional: 

In re The Interpublic Group of Companies Securities Litigation, No. 02 Civ. 6527 (S.D.N.Y. 

2002):

Schiffrin Barroway Topaz & Kessler served as sole Lead Counsel in this action on behalf of an 

institutional investor and recently received final approval of a settlement consisting of $20 

million in cash and 6,551,725 shares of IPG common stock. As of February 2005, the stock had 

App. 95

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 95 of 128
an approximate value of $87 million, resulting in a total settlement value of approximately $107 

million. In granting its approval, the Court praised Schiffrin Barroway Topaz & Kessler for 

acting responsibly and noted the firm’s professionalism, competence and contribution to 

achieving such a favorable result. 

In re Digital Lightwave, Inc. Securities Litigation, Consolidated Case No. 98-152-CIV-T-24E 

(M.D. Fla. 1999):

The firm served as Co-Lead Counsel in one of the nation’s most successful securities class 

actions. After extensive litigation and negotiations, a settlement consisting primarily of stock 

ultimately grew to a value of over $170 million between the time in which the settlement was 

negotiated and the time at which it was distributed. Schiffrin Barroway Topaz & Kessler took on 

the primary role in negotiating the terms of the equity component, insisting that the class have 

the right to share in any upward appreciation in the value of the stock after the settlement was 

reached. This recovery represented an astounding approximately two hundred percent (200%) of 

class members’ losses. Schiffrin Barroway Topaz & Kessler believes that this represents the 

largest percentage recovery for shareholders in securities class action history. 

Mr. Barroway, along with his partner, Mr. Kessler, has also negotiated substantial settlements of 

securities class actions in which Schiffrin Barroway Topaz & Kessler was Lead or Co-Lead 

Counsel against Pinnacle Holdings, Cell Pathways, Gateway, Mercator and NetSolve. Mr. 

Barroway currently represents numerous public pension funds, private investment funds, money 

management firms, and individuals in securities fraud litigation as Lead or Co-Lead Counsel. 

MARC A. TOPAZ, a senior partner of the firm, received his law degree from Temple 

University School of Law, where he was an editor of the Temple Law Review and a member of 

the Moot Court Honor Society. He also received his Master of Law (L.L.M.) in taxation from the 

New York University School of Law, where he served as an editor of the New York University 

Tax Law Review. He is licensed to practice law in Pennsylvania and New Jersey, and has been 

admitted to practice before the United States District Court for the Eastern District of 

Pennsylvania. Mr. Topaz manages the firm’s derivative, transactional and antitrust departments. 

In this regard, Mr. Topaz has been actively involved in litigating the following prominent cases: 

In re MTC Electronic Shareholder Litigation, No. CV-93-0876 (E.D.N.Y. 1993): 

Schiffrin Barroway Topaz & Kessler served as Co-Counsel in a case involving securities fraud 

by MTC, its officers and directors, underwriters and accountants. The case presented novel 

issues of Chinese law, and required the construction of a database of hundreds of thousands of 

documents utilized in numerous party and non-party depositions. A $72 million settlement was 

achieved on the eve of trial. 

In re Oppenheimer Capital, L.P., Unitholders Litigation, Consolidated No. 16022NC (Del. Ch. 

1997):

Schiffrin Barroway Topaz & Kessler served as Co-Lead Counsel on behalf of plaintiffs alleging 

that a merger proposed by Pimco Advisors benefitted certain Pimco insiders by 

App. 96

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 96 of 128
disproportionately allocating tax benefits achieved from the restructuring of a limited 

partnership, and failing to provide adequate compensation to the Oppenheimer shareholders. 

Plaintiffs moved to enjoin the transaction and a settlement was reached whereby defendants 

agreed to pay a special dividend to Oppenheimer limited partners of approximately $16 million. 

Wanstrath v. Doctor R. Crants, et al., C.A. No. 99-1719-III 

(Tenn. Chan. Ct., 20th Judicial District, 1999): 

Schiffrin Barroway Topaz & Kessler served as Lead Counsel in a derivative action filed against 

the officers and directors of Prison Realty Trust, Inc., challenging the transfer of assets from the 

Company to a private entity owned by several of the Company’s top insiders. Numerous federal 

securities class actions were pending against the Company at this time. Through the derivative 

litigation, the Company’s top management was ousted, the composition of the Board of Directors 

was significantly improved and important corporate governance provisions were put in place to 

prevent future abuse. Mr. Schiffrin, in addition to achieving these desirable results, was able to 

personally effectuate a global settlement of all pending litigation against the backdrop of an 

almost certain bankruptcy. The case was resolved in conjunction with the federal securities cases 

for the payment of approximately $50 million by the Company’s insurers and the issuance of 

over 46 million shares to the class members. 

DAVID KESSLER, a senior partner of the firm, graduated with distinction from the Emory 

School of Law. He is licensed to practice in Pennsylvania and New Jersey, and has been 

admitted to practice before the United States District Court for the Eastern District of 

Pennsylvania and the United States District Court for the District of New Jersey. Prior to 

practicing law, Mr. Kessler was a Certified Public Accountant in Pennsylvania. Mr. Kessler comanages the firm’s nationally recognized securities department. In addition, Mr. Kessler often 

lectures on securities litigation and was a featured speaker on hot topics in securities litigation in 

a seminar entitled “The Explosion and Evolution of Class Action Law” in December 2004 in 

Philadelphia, Pennsylvania, and the Corporate Governance Summit on Corporate Accountability 

in July 2003 in New York City. Mr. Kessler has achieved the following outstanding results in 

federal securities cases: 

In re Initial Public Offering Securities Litigation, Master File No. 21 MC 92 (SAS) (S.D.N.Y. 

Dec. 12, 2002): 

Mr. Kessler, along with Mr. Schiffrin, is presently heading up the firm’s litigation efforts in its 

prominent position as an Executive Committee member in this action. Of the sixty plaintiffs 

firms which originally filed actions in these coordinated proceedings, Schiffrin Barroway Topaz 

& Kessler was one of only six selected to serve on the Executive Committee. The coordinated 

actions, which have been filed against 309 separate issuers of publicly traded securities, 

challenge the legality of the practices which accompany the allocations of shares in initial public 

offerings. In addition to suing the issuers of such securities, the 309 coordinated actions also 

name as defendants the primary investment banking firms which underwrote the offerings. This 

case, which has received a great deal of national and international media attention, is widely 

considered the largest securities class action litigation in history. At the present time, the court 

has preliminarily approved a $1 billion settlement with the issuers and their officers and 

App. 97

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 97 of 128
directors. The class has also reached an agreement in principle to resolve the action against JP 

Morgan for $425 million, which is in the process of being memorialized and submitted to the 

Court for approval. The case is proceeding against the remaining underwriting defendants. 

In re PNC Financial Services Group, Inc. Litigation, Case No. 02-CV-271 (W.D. Pa. 2002): 

Schiffrin Barroway Topaz & Kessler served as Co-Lease Counsel and was instrumental in 

opbtaining a $30 million recovery for class members from PNC and the assignment of certain 

claims it may have had against its audit and other third party law firms and insurance companies, 

with respect to an alleged fraudulent scheme wherein non-performing assets were removed from 

PNC's books and transferred to special purpose entities that PNC allegedly still controlled. An 

additional $6.6 million was recovered from the insurance company and the law firms and an 

agreement in the principle has now been reached with the audit to resolve all claims for another 

$9.075 million, providing for a total recovery from the securities litigation of $45.675 million 

upon approval of the auditor settlement. When coupled with the $156 million restitution fund 

established through government actions against some of the same defendants and third parties, 

the total recovery for class members exceeds $200 million. 

In re Assisted Living Concepts, Inc. Securities Litigation, Lead Case No. 99-167-AA (D. Or. 

1999): 

Schiffrin Barroway Topaz & Kessler served as Co-Lead Counsel and was instrumental in 

obtaining a $30 million recovery for class members from the Company, its executive officers and 

directors, and several underwriters for their role in an alleged complex accounting fraud 

involving the use of a purportedly independent joint venture to absorb the Company’s startup 

losses. Even after this $30 million recovery, through counsel’s efforts, an additional $12.5 

million was obtained from the auditors providing for a total recovery of $42.5 million. 

In re Cumulus Media Inc. Securities Litigation, Lead Case No. 00-C-391 (E.D. Wis. 2000): 

Schiffrin Barroway Topaz & Kessler served as Lead Counsel and successfully litigated the 

action and negotiated a settlement of $13 million in cash and 240,000 shares of freely tradable 

stock in Cumulus Media, which traded for approximately $19 per share, for a total settlement 

value of $17.5 million at the time the settlement was approved by the Court.

KATHARINE M. RYAN, a partner of the firm, graduated cum laude from Villanova 

University School of Law in May 1984. Ms. Ryan is admitted to practice before the United 

States District Court for the Eastern District of Pennsylvania, the Court of Appeals for the Third 

Circuit and the United States Supreme Court. Ms. Ryan recently participated as a speaker in a 

legal teleconference entitled “Is the PSLRA’s Safe Harbor Provision Safe?” Ms. Ryan is actively 

involved in litigating several of the firm’s most prominent cases and was integral in the excellent 

results achieved in the following cases: 

App. 98

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 98 of 128
In re The Interpublic Group of Companies Securities Litigation, No. 02 Civ. 6527 (S.D.N.Y. 

2002): 

Schiffrin Barroway Topaz & Kessler served as sole Lead Counsel in this action on behalf of an 

institutional investor and recently received final approval of a settlement consisting of $20 

million in cash and 6,551,725 shares of IPG common stock. As of February 2005, the stock had 

an approximate value of $87 million, resulting in a total settlement value of approximately $107 

million. In granting its approval, the Court praised Schiffrin Barroway Topaz & Kessler for 

acting responsibly and noted the firm’s professionalism, competence and contribution to 

achieving such a favorable result. 

In re New Power Holdings, Inc. Securities Litigation, No. 02 Civ. 1550 (S.D.N.Y. 2002): 

Schiffrin Barroway Topaz & Kessler served as Co-Lead Counsel and was instrumental in 

obtaining a recovery of $41 million in cash for class members against a bankrupt company, 

certain of its officers and directors and the underwriters of the Company’s offering. Claims 

involved New Power, an offshoot of Enron, that was formed to re-enter the deregulated energy 

market and pursued an IPO with no viable plan to hedge against volatile energy prices.

STUART L. BERMAN, a partner of the firm, received his law degree from George 

Washington University National Law Center, and his undergraduate degree from Brandeis 

University. He is licensed to practice law in Pennsylvania and New Jersey, and has been 

admitted to practice before the United States District Court for the Eastern District of 

Pennsylvania and the United States District Court for the District of New Jersey. Mr. Berman 

manages the firm’s lead plaintiff department and has been instrumental in courts appointing 

many of the firm’s institutional and individual clients as lead plaintiffs in important cases, such 

as: 

In re Tenet Healthcare Corp. Securities Litigation, No. CV-02-8462- RSWL (C.D. Cal. 2002), 

State of New Jersey and its Division of Investment v. Sprint Corporation, et al., No. 2:03-CV02071-JWL (D. Kan. 2003), 

In re The Interpublic Group of Companies Securities Litigation, No. 02 Civ. 6527 (S.D.N.Y. 

2002), State of New Jersey and Its Division of Investment v. Sprint Corporation, et al., No. 03-

2071-JWL (D. Kan. 2003), 

In re Delphi Corp. Sec. Litig., 1:05-CV-2637 (NRB) (S.D.N.Y. 2005);

In re Vaxgen Inc. Securities Litigation, No. C 03-01129 JSW (N.D. Cal. 2003), 

In re American Business Financial Services, Inc., No. 04- 0265 (E.D. Pa. 2004) 

In re Autobytel, Inc. Securities Litigation, No. CV04-8987 MMM (JWJx) (C.D. Cal. 2004). 

App. 99

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 99 of 128
Mr. Berman represents and works with institutional investors worldwide in securities litigation 

and other related matters. In addition, Mr. Berman is a frequent speaker on securities issues, 

especially as they relate to institutional investors, and has been a speaker at such events as The 

European Pension Symposium in Florence, Italy; the Public Funds Symposium 2005 in 

Washington, D.C.; the Pennsylvania Public Employees Retirement (PAPERS) Summit in 

Harrisburg, Pennsylvania; and the New England Pension Summit in Newport, Rhode Island; the 

Rights and Responsibilities for Institutional Investors 2006 in Amsterdam, Netherlands; and the 

European Investment Roundtable 2006 in Barcelona, Spain. He speaks with institutional 

investors located around the world regarding their rights and obligations associated with 

securities fraud class actions and individual actions. Mr. Berman works closely with the firm’s 

institutional investors and counsels them on fulfilling their fiduciary obligations and exercising 

their rights in all types of securities related actions. 

Mr. Berman has specialized in the area of securities litigation for the past nine years. He is 

particularly proud of the results achieved in In re AremisSoft Corp. Sec. Litig., C.A. No. 01-CV2486 (D.N.J. 2002), a case on which Mr. Berman and his partner, Richard Schiffrin, have 

worked extensively. This case was exceedingly complicated, as it involved the embezzlement of 

hundreds of millions of dollars by former officers of the Company, some of whom are now 

fugitives. In settling the action, Schiffrin Barroway Topaz & Kessler, as sole Lead Counsel, 

assisted in reorganizing AremisSoft as a new Company which allowed for it to continue 

operations, while successfully separating out the securities fraud claims and the bankrupt 

Company’s claims into a litigation trust. The Settlement, which was approved by the Court, 

called for the class to receive the majority of the equity in the new Company, as well as their pro 

rata share of all amounts recovered by the litigation trust. The Court-appointed co-trustees, 

Joseph P. LaSala, Esq. and Fred S. Zeidman, retained Schiffrin Barroway Topaz & Kessler to 

continue prosecuting the actions on behalf of the litigation trust. After extensive litigation in the 

Isle of Man, including the successful freezing of more than $200 million of stolen funds, the trust 

recently settled its action against one of the principal wrongdoers and recovered approximately 

$200 million. Thus far, the trust has distributed to beneficiaries of the trust more than 28% of 

their recognized losses (excluding the value of the equity of the new Company), and is poised to 

recover even more. Recently, the trust commenced further litigation in Cyprus, where it obtained 

a Mareva injunction and interim ancillary relief against bank accounts and assets owned and/or 

controlled by the other principal wrongdoer. 

GREGORY M. CASTALDO, a partner of the firm, received his law degree from Loyola 

Law School, where he received the American Jurisprudence award in legal writing. He received 

his undergraduate degree from the Wharton School of Business at the University of 

Pennsylvania. He is licensed to practice law in Pennsylvania and New Jersey. Mr. Castaldo has 

been actively involved in litigating the following cases: 

In re Tenet Healthcare Corp., 02-CV-8462 (C.D. Cal.): 

Schiffrin Barroway Topaz & Kessler served as Co-Lead Counsel on behalf of plaintiffs, alleging 

that Tenet Healthcare and certain of its officers and directors defrauded Medicare out of 

hundreds of millions of dollars, materially overstated Tenet's revenues, and performed 

unnecessary cardiac surgeries to increase the Company's earnings. After three years of hardApp. 100

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 100 of 128
fought litigation and complex mediation, Schiffrin Barroway Topaz & Kessler helped obtain a 

settlement involving a $216.5 million payment from Tenet and the Company's former CEO and 

COO, and specific corporate governance improvements. 

In re Liberate Technologies Securities Litigation, No. C-02-5017 (MJJ) (N.D. Cal. 2005):

Plaintiffs alleged that Liberate engaged in fraudulent revenue recognition practices to artificially 

inflate the price of its stock, ultimately forcing it to restate its earning. As sole Lead Counsel, 

Schiffrin Barroway Topaz & Kessler successfully negotiated a $13.8 million settlement, which 

represents almost 40% of the damages suffered by the class. In approving the settlement, the 

district court complimented Lead Counsel for its "extremely credible and competent job."

In re Sodexho Marriott Shareholders Litigation, 

Consol. C.A. No. 18640-NC, Delaware Chancery Court, in which Class Counsel was partially 

responsible for creating an aggregate financial benefit of approximately $166 million for 

members of the class. 

Mr. Castaldo is also presently State of New Jersey and Its Division of Investment v. Sprint 

Corporation, et al., No. 03-2071-JWL (D. Kan. 2003) among other actions. 

MICHAEL K. YARNOFF, a partner of the firm, received his law degree from Widener 

University School of Law. Mr. Yarnoff is licensed to practice law in Pennsylvania, New Jersey, 

and Delaware and has been admitted to practice before the United States District Courts for the 

Eastern District of Pennsylvania and the District of New Jersey. He serves in the firm’s securities 

litigation department and has been actively involved in a number of federal securities cases in 

which outstanding results were achieved, including the following: 

In re CVS Corporation Securities Litigation, C.A. No. 01-11464 JLT (D.Mass.):

After more than three years of contentious litigation and a series of protracted mediation 

sessions, Schiffrin Barroway Topaz & Kessler, LLP, serving as co-lead counsel, secured a $110 

million recovery for class members in the CVS Securities Litigation. Specifically, the suit 

alleged that CVS violated accounting practices by delaying discounts on merchandise in an effort 

to prop up its earnings. In addition, the suit charged that in 2001, the Company and its Chief 

Executive Officer, Thomas M. Ryan, improperly delayed announcement of its intention to close 

approximately 200 underperforming stores, and that an industry-wide pharmacist shortage would 

have a materially negative impact on the Company’s performance. Settlement was reached just 

days prior to the commencement of trial, and shortly after the district court had denied the 

defendants’ motions for summary judgment. This substantial recovery, which represents the 

third-largest settlement in a securities class action case in the First Circuit, received final 

approval from District Judge Joseph Tauro on September 27, 2004. 

App. 101

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 101 of 128
In re InfoSpace, Inc. Securities Litigation, Master File No. C-01-0913-Z (D. Wash. 2001):

Schiffrin Barroway Topaz & Kessler served as Co-Lead Counsel on behalf of plaintiffs alleging 

that InfoSpace and certain of its officers and directors overstated revenues by using improper 

accounting methods, overstated the demand for InfoSpace’s wireless services, misstated 

InfoSpace’s financial relationships with major customers, and falsely represented that InfoSpace 

would receive subscription fees from users of web-enabled cell phones. After two years of hardfought litigation and complex mediation, a settlement of $34.3 million was obtained for members 

of the class. 

In re Riverstone Networks, Inc. Securities Litigation, Case No. CV-02-3581 (N.D. Cal. 2002):

Schiffrin Barroway Topaz & Kessler served as Lead Counsel on behalf of plaintiffs alleging that 

Riverstone and certain of its officers and directors sought to create the impression that the 

Company, despite the industry-wide downturn in the telecom sector, had the ability to prosper 

and succeed and was actually prospering. In that regard, plaintiffs alleged that defendants issued 

a series of false and misleading statements concerning the Company’s financial condition, sales 

and prospects, and used inside information to personally profit. After extensive litigation, the 

parties entered into formal mediation with the Honorable Charles Legge (Ret.). Following fivemonths of mediation, the parties reached a settlement of $18.5 million. 

JOSEPH MELTZER, a partner of the firm, concentrates his practice in the areas of ERISA 

and antitrust complex litigation. He is licensed to practice law in Pennsylvania and New Jersey 

and is admitted to practice before numerous United States District Courts and United States 

Courts of Appeals, including the United States Court of Appeals for the Third Circuit. 

Mr. Meltzer manages the firm’s ERISA Litigation Department, which has excelled in the highly 

specialized area of prosecuting claims on behalf of retirement savings plans. Mr. Meltzer is lead 

counsel in several pending nationwide class actions brought under ERISA, including Lewis v. El 

Paso Corp. (S.D. Tex.); In re Sears, Roebuck & Co. ERISA Litigation (N.D. Ill.); In re Loral 

Space ERISA Litigation (S.D.N.Y.) and In re Schering-Plough Corp. ERISA Litig., where the 

firm obtained an important ruling from the Third Circuit reversing the District Court’s dismissal 

and confirming the rights of pension plan participants to pursue these claims. See 420 F.3d 231, 

amended by No. 04-CV-3073, 2005 U.S. App. LEXIS 19826 (3d Cir., Sept. 15, 2005). He is a 

frequent lecturer on ERISA litigation and employee benefits issues, is a member of the ABA’s 

Section Committee on Employee Benefits and has been recognized by numerous courts for his 

ability and expertise in this complex area of the law. Since helping to establish the ERISA 

Litigation Department, Mr. Meltzer has recovered well over $250 million for retirement plan 

participants, including in the following prominent cases: 

In re AOL Time Warner ERISA Litig., C.A. No. 02-8853 (S.D.N.Y.): The firm served as CoLead Counsel in one of the most successful ERISA class actions. Following extensive litigation, 

including motions for summary judgment, Mr. Meltzer helped negotiate a settlement of $100 

million for a class of retirement plan participants. To date, this is the second largest settlement 

for a case of this type and the largest in a case involving a non-bankrupt company.

App. 102

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 102 of 128
In re Global Crossing Ltd. ERISA Litig., No. 02-7453 (S.D.N.Y.): The firm served as Co-Lead 

Counsel in one of the earliest ERISA class actions involving employer securities and seeking 

relief under ERISA sec. 502(a)(2). After extensive litigation and complex negotiations, the firm 

helped secure a recovery of over $78 million for retirees whose nest eggs were badly impacted 

by the collapse of Global Crossing. 

Mr. Meltzer also manages the firm’s Antitrust Department and serves as lead counsel in 

numerous nationwide antitrust actions where he represents such clients as the Pennsylvania 

Turnpike Commission, the Southeastern Pennsylvania Transportation Authority (SEPTA) and 

the Sidney Hillman Health Center of Rochester. As lead counsel, he has helped obtain several 

multi-million dollar settlements, including settlements in In re Remeron Antitrust Litigation, 02-

CV-2007 (D.N.J.) ($36 million settlement) and In re Augmentin Antitrust Litigation, 02-442 

(E.D. Va.) ($29 million settlement). Mr. Meltzer also lectures on issues related to antitrust 

litigation and is a member of the ABA’s Section Committee on Antitrust Law. 

In addition to the ERISA Litigation and Antitrust Departments, Mr. Meltzer manages the firm’s 

Consumer Fraud Department. An honors graduate of the University of Maryland, he received 

his law degree with honors from Temple University School of Law. Prior to joining Schiffrin & 

Barroway, Mr. Meltzer practiced at Barrack, Rodos & Bacine in Philadelphia, where he had 

prominent roles in prosecuting several complex class actions to successful conclusions and also 

defended clients in antitrust and commercial litigation. 

DARREN J. CHECK, a partner of the firm, concentrates his practice in the area of securities 

litigation and institutional investor relations. He is a graduate of Franklin & Marshall College 

where he received a degree in History, with honors. Mr. Check received his law degree from 

Temple University School of Law and is licensed to practice law in Pennsylvania and New 

Jersey, and has been admitted to practice before the United States District Court for the Eastern 

District of Pennsylvania, the United States District Court for the District of New Jersey, and the 

United States District Court for the District of Colorado. Mr. Check began his career at Schiffrin 

Barroway Topaz & Kessler by working extensively with partner David Kessler on In re Initial 

Public Offering Securities Litigation, No. 21 MC 92 (SAS) (S.D.N.Y. Dec. 12, 2002), widely 

considered the largest securities class action in history. 

Currently, Mr. Check concentrates his time as the firm’s Director of Institutional Relations. He 

consults with institutional investors from around the world regarding their rights and 

responsibilities with respect to their investments and taking an active role in shareholder 

litigation. Mr. Check assists clients in evaluating what systems they have in place to identify and 

monitor shareholder litigation that has an affect on their investments, and also assists them in 

evaluating the strength of such cases and to what extent they may be affected by the conduct that 

has been alleged. He currently works with clients in the U.S., Canada, United Kingdom, France, 

Italy, Sweden, Denmark, Finland, Norway, Germany, Austria, and the Netherlands. Mr. Check 

regularly speaks on the subjects of shareholder litigation, corporate governance, investor 

activism, and how Schiffrin Barroway Topaz & Kessler's services can be of use to investors. 

Recently, Mr. Check spoke at the MultiPensions 2005 Conference in Amsterdam, Netherlands; 

the 2005 European Pension Symposium in Florence, Italy; the Public Funds Summit 2005 in 

Phoenix, Arizona; the European Investment Roundtable in Barcelona, Spain; The Rights & 

App. 103

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 103 of 128
Responsibilities Of Institutional Investors: European and U.S. Approaches To Active Ownership 

in Amsterdam, Netherlands; the Corporate Governance & Responsible Investment Summit, 

Stockholm, Sweden; Pension Fund Investment World – Germany in Frankfurt, Germany; and the 

2007 European Pension Symposium in Lisbon, Portugal. 

TOBIAS MILLROOD, a partner of the firm, manages the mass tort department at Schiffrin 

Barroway Topaz & Kessler. Mr. Millrood has been actively involved in mass tort litigation 

involving Prempro (Hormone Therapy), Guidant Cardiac Devices, Medtronic Cardiac Devices, 

Vioxx, Fen-Phen, Baycol, Meridia, Thimerosal, Ephedra and Zyprexa. 

Mr. Millrood has been distinguished with leadership roles in several national products liability 

actions. Mr. Millrood currently serves as Liaison Counsel in In Re Hormone Therapy Litigation, 

Philadelphia Court of Common Pleas. Mr. Millrood also serves on the Plaintiffs’ Steering 

Committee in MDL 1507 – In Re Prempro Products Liability and is Chair of the Association of 

Trial Lawyers of America (ATLA) Hormone Therapy Litigation Group. Mr. Millrood served as 

a Co-Chair of the Expert Committee in In Re Baycol Litigation, Philadelphia Court of Common 

Pleas. In Meridia, Mr. Millrood is Co-Chair of the ATLA Meridia Litigation Group. He also 

served on the Executive Committee of MDL 1481, In re Meridia Products Liability. In 

Thimerosal, Mr. Millrood serves on the Executive Committee of the Omnibus Autism 

Proceedings before the National Vaccine Injury Compensation Program. In August 2003, Mr. 

Millrood’s article on Hormone Therapy was published in Trial magazine. Mr. Millrood speaks 

frequently at various seminars, on the topics of Mass Tort Litigation, Hormone Therapy, Cardiac 

Device Litigation, Meridia, the Ethics of Settling Mass Tort Cases and Electronic Discovery. Mr. 

Millrood has helped his clients to achieve millions of dollars in settlement of their product 

liability claims. 

Prior to joining Schiffrin Barroway Topaz & Kessler, LLP, Mr. Millrood practiced at Anapol 

Schwartz. While at Anapol Schwartz, Mr. Millrood garnered several notable achievements, 

including serving as co-counsel in a $22 million medical malpractice verdict in Wallace v. 

Fraider (Phila. CCP Mar. 2001), one of the highest in state history. He also wrote and argued 

cases resulting in significant changes to Pennsylvania law: Cullen v. Pennsylvania Prop. & Cas. 

Ins. Guar. Ass’n, 760 A.2d 1198 (Pa. Commw. 2000) (Pennsylvania workers’ compensation 

carrier could not assert a subrogated claim for benefits that its insured’s employee was precluded 

from recovering in settlement of a related medical malpractice claim); and Estate of Magette v. 

Goodman, 2001 WL 218981 (Pa. Super. 2001) (failure to retain evidence of EKG strip during 

orthopedic surgery that resulted in death of patient required new trial where court failed to give 

jury adverse inference instruction). 

Mr. Millrood received his law degree from University of Tulsa College of Law. He is licensed to 

practice law in Pennsylvania and New Jersey, and has been admitted to practice before the 

United States District Court for the Eastern District of Pennsylvania, the United States District 

Court for the District of New Jersey and the United States Court of Appeals for the Third Circuit. 

Mr. Millrood is a former member of the Pennsylvania Trial Lawyers Board of Governors and the 

Executive Committee of the Philadelphia Bar Association Young Lawyers’ Division. 

 

App. 104

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 104 of 128
ANDREW L. ZIVITZ, a partner of the firm, received his law degree from Duke University 

School of Law, and received a Bachelor of Arts degree, with distinction, from the University of 

Michigan, Ann Arbor. Prior to joining Schiffrin Barroway Topaz & Kessler, Mr. Zivitz practiced 

with the Philadelphia law firms of Klehr, Harrison, Harvey, Branzburg & Ellers, LLP and 

Drinker Biddle & Reath, LLP, where he litigated complex commercial and environmental 

matters. 

Mr. Zivitz is admitted to practice law in Pennsylvania and New Jersey, and has been admitted to 

practice before the United States District Court for the Eastern District of Pennsylvania and the 

United States District Court for the District of New Jersey. Mr. Zivitz concentrates his practice in 

the area of securities litigation, and is Lead or Co-Lead Counsel in several of the largest class 

action securities cases currently pending nationwide. In addition, Mr. Zivitz has been actively 

involved in a number of federal securities cases in which outstanding results were achieved, 

including the following: 

In re Tenet Healthcare Corp., 02-CV-8462 (C.D.Cal.):

Schiffrin Barroway Topaz & Kessler served as Co-Lead Counsel on behalf of plaintiffs, alleging 

that Tenet Healthcare and certain of its officers and directors defrauded Medicare out of 

hundreds of millions of dollars, materially overstated Tenet's revenues, and performed 

unnecessary cardiac surgeries to increase the Company's earnings. After three years of hardfought litigation and complex mediation, Schiffrin Barroway Topaz & Kessler helped obtain a 

settlement involving a $216.5 million payment from Tenet and the Company's former CEO and 

COO, and specific corporate governance improvements. 

In re Computer Associates, No. 02-CV-1226 (E.D.N.Y.):

Schiffrin Barroway Topaz & Kessler served as Co-Lead Counsel on behalf of plaintiffs, alleging 

that Computer Associates and certain of its officers misrepresented the health of the company's 

business, materially overstated the company's revenues, and engaged in illegal insider selling. 

After nearly two years of litigation, Schiffrin Barroway Topaz & Kessler helped obtain a 

settlement of $150 million from the company. 

In re McLeod USA Inc., No. C02-0001-MWB (N.D. Iowa): 

Schiffrin Barroway Topaz & Kessler served as Co-Lead Counsel on behalf of plaintiffs, alleging 

that McLeod USA and certain of its officers misrepresented the health and prospects of the 

company's business. After more than three years of litigation, Schiffrin Barroway Topaz & 

Kessler helped obtain a settlement of $30 million from the defendants. 

In re Ligand Pharmaceuticals, Inc., 04-CV-1620-DMS (S.D. Cal): 

Schiffrin Barroway Topaz & Kessler served as Lead Counsel and was instrumental in obtaining a 

recovery of $8.0 million for class members against Ligand Pharmaceuticals and certain of its 

officers. Plaintiffs brought claims against the defendants on the grounds that they touted the 

financial condition of the company and their ability to predict and monitor inventory returns 

App. 105

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 105 of 128
when, in fact, the Company's revenues and earnings were artificially inflated and defendants had 

no ability to meaningfully predict or gauge inventory returns. 

In re Aon Corp., No. 02-CV-5631 (N.D. Ill.):

Schiffrin Barroway Topaz & Kessler served as Lead Counsel and was instrumental in obtaining a 

recovery of $7.25 million for class members against Aon Corp. and certain of its officers. 

Plaintiffs brought claims against the defendants on the grounds that they touted the prospects and 

successes of the company's multi-million dollar "Business Transformation Plan," when in fact 

they knew that the plan was damaging the company's business. 

SEAN M. HANDLER, a partner of the firm, received his Bachelor of Arts degree from Colby 

College, graduating with distinction in American Studies. Mr. Handler then earned his Juris 

Doctor, cum laude, from Temple University School of Law. 

After law school, Mr. Handler practiced labor law at Reed Smith, LLP in Philadelphia. Since 

joining Schiffrin Barroway Topaz & Kessler, Mr. Handler has concentrated his practice in the 

area of securities litigation, with a particular emphasis on client development, litigation strategy 

and lead plaintiff litigation. In this role, Mr. Handler has been responsible for numerous reported 

decisions. 

In addition to these responsibilities, Mr. Handler also spends considerable time litigating ongoing 

securities litigation matters on behalf of institutional clients, including: 

In re Delphi Corporation Securities Litigation, No. 06-10026 (GER) (E.D. MI.) 

Smajlaj v. Brocade Communications Systems, Inc., et al., No. 05-cv-02042 (CRB) (N.D. Cal.) 

State of New Jersey and Its Division of Investment v. Sprint Corporation, et al., No. 03-2071-

JWL (D. Kan. 2003). 

JOHN A. KEHOE, a partner of the firm, received his B.A. from DePaul University, and an 

M.P.A., with high honors, from the University of Vermont. He earned his J.D., magna cum 

laude, from Syracuse University College of Law, where he was an Associate Editor of the 

Syracuse Law Review, Associate Member of the Moot Court Board, and Alternate Member of 

the National Appellate Team. 

During his legal career, Mr. Kehoe has litigated high profile securities and antitrust actions in 

federal and state courts, including Ohio Public Employees Retirement System et al. v. Freddie 

Mac et al., 03-CV-4261 (S.D.N.Y) (resulting in a $410 million combined class and derivative 

settlement); In re Bristol-Myers Squibb Sec. Litig., 02-CV-2251 (S.D.N.Y) (resulting in a $300 

million class settlement); In re Adelphia Communications Corp. Sec. & Der. Litig., No. 03 MD 

1529 (S.D.N.Y) ( resulting in a $460 million class settlement); and In re Vitamins Antitrust 

Litig., MDL No. 1285 (D.D.C) (resulting in more than $2 billion in federal and state class and 

direct action settlements). 

App. 106

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 106 of 128
Mr. Kehoe is currently among the lead trial attorneys representing individual and institutional 

investors in 309 separate class actions that have been consolidated for pretrial purposes in In re 

Initial Public Offering Sec. Litig., No. 21 MC 92 (S.D.N.Y.) ( resulting in over $1 billion in class 

settlements with additional claims pending against various underwriter defendants). He is also 

serving as lead or co-lead counsel in Reynolds v. Repsol YPF S.A., 06-CV-00733 (S.D.N.Y.); 

Mizzaro v. Home Depot Inc., 06-CV-1151 (N.D. Ga.); and In re AremisSoft Corp. Sec. Litig., 01-

CV-2486 (D.N.J). 

Prior to joining Schiffrin Barroway Topaz & Kessler, Mr. Kehoe spent six years as an associate 

at Clifford Chance LLP, where he represented Fortune 500 corporations and their officers and 

directors in complex commercial litigation and in actions brought by the Department of Justice, 

the Securities and Exchange Commission and the Federal Trade Commission. 

Mr. Kehoe is a member of the Association of the Bar of the City of New York and the New York 

Bar Association and is admitted to practice before the courts of New York State (1999) and the 

U.S. District Court for the Southern District of New York (2000). 

LEE D. RUDY, a partner of the firm, received his law degree from Fordham University in 

1996. In law school he was a senior editor of the Fordham Urban Law Journal and published A 

Procedural Approach to Limited Public Forum Cases, 22 Ford. Urb. L.J. 1255 (1995). He 

received his undergraduate degree, cum laude, from the University of Pennsylvania in 1992. Mr. 

Rudy is licensed to practice law in Pennsylvania and New York. From 1996 to 2002, Mr. Rudy 

was an Assistant District Attorney in the Manhattan District Attorney’s Office, where he 

prosecuted dozens of felony jury trials to verdict. From 2003 to 2005, Mr. Rudy was an Assistant 

United States Attorney in the District of New Jersey, where he investigated and prosecuted 

numerous fraud and violent crime cases, and where he tried several major fraud cases to verdict 

in federal court. Mr. Rudy co-manages the firm’s mergers and acquisition and shareholder 

derivative litigation department along with Marc Topaz and Eric Zagar. 

KAY E. SICKLES, a partner of the firm, received her law degree from the University of 

Pennsylvania School of Law. She received her undergraduate degree from Colgate University, 

graduating, with honors, from the History department. Prior to joining the firm, Ms. Sickles was 

an associate with Sandals & Langer, LLP, where she litigated complex class actions arising out 

of violations of the ERISA and antitrust statutes. She is licensed to practice law in Pennsylvania 

and New Jersey, and has been admitted to practice before the Ninth and Seventh Circuit Courts 

of Appeal, the United States District Court for the Eastern District of Pennsylvania, and the 

United States District Court for the District of New Jersey. 

Ms. Sickles concentrates her practice in the area of securities litigation and specializes in 

settlement matters. She has played a lead role in effectuating some of the most significant 

settlements of securities class action in recent years, including the partial settlement with Tenet 

Healthcare Corp. and certain officer of that corporation for $216.5 million in In re Tenet 

Healthcare Corp. Sec. Litig., No. CV-02-8462-RSWL (Rzx) (C.D. Ca. 2006); the settlement for 

cash and common stock worth over $90 million in In re Interpublic Sec. Litig., Civ. 6527 (DLC) 

(S.D.N.Y. 2004); and the settlements for securities worth over $133.5 million in In re Computer 

Associates Class Action Securities Litigation, Master File No. 98 Civ. 4839 (TCP) and In re 

App. 107

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 107 of 128
Computer Associated 2002 Cass Action Securities Litigation, Master File No., 02-CV-1226 

(TCP) (E.D.N.Y.). 

ERIC L. ZAGAR, a partner of the firm, received his law degree from the University of 

Michigan Law School, cum laude, where he was an Associate Editor of the Michigan Law 

Review. He has practiced law in Pennsylvania since 1995, and previously served as a law clerk 

to Justice Sandra Schultz Newman of the Pennsylvania Supreme Court. He is admitted to 

practice in Pennsylvania. 

Mr. Zagar concentrates his practice in the area of shareholder derivative litigation. Mr. Zagar has 

served as Lead or Co-Lead counsel in numerous derivative actions in courts throughout the 

nation, including David v. Wolfen, Case No. 01- CC-03930 (Orange County, CA) (Broadcom 

Corp. Derivative Action); In re PolyMedica Corporation Shareholder Derivative Litigation, 

Case No. 01-3446 (Middlesex County, MA); In Re Dynacq Int’l. Shareholder Derivative 

Litigation, Case No. 2002- 07135 (Harris County, TX); and Castillo v. Cavallaro, et al., Case 

No. A467663 (Clark County, NV) (Station Casinos, Inc. Class and Derivative Action). Mr. 

Zagar has successfully achieved significant monetary and corporate governance relief for the 

benefit of shareholders, and has extensive experience litigating matters involving Special 

Litigation Committees. 

ASSOCIATES AND OTHER PROFESSIONALS 

JULES D. ALBERT, an associate of the firm, received his J.D. in 2005 from the University of 

Pennsylvania Law School, where he was a Senior Editor of the University of Pennsylvania 

Journal of Labor and Employment Law and recipient of the James Wilson Fellowship. Mr. 

Albert also received a Certificate of Study in Business and Public Policy from The Wharton 

School at the University of Pennsylvania. Mr. Albert graduated magna cum laude with a 

Bachelor of Arts in Political Science from Emory University. Mr. Albert is licensed to practice 

law in Pennsylvania, and concentrates his practice in the mergers and acquisitions and 

stockholder derivative actions department. 

KATIE L. ANDERSON, an associate of the firm, received her law degree from Widener 

University School of Law. She received her undergraduate degree from the University of 

Pittsburgh. Prior to joining Schiffrin Barroway Topaz & Kessler, Ms. Anderson served as a 

Deputy Attorney General for the Pennsylvania Office of Attorney General, Bureau of Consumer 

Protection, where she was responsible for enforcing a wide range of consumer oriented laws. 

Ms. Anderson is licensed to practice law in Pennsylvania and is admitted to practice in the 

United States District Court for the Eastern District of Pennsylvania. She concentrates her 

practice in the area of mass tort litigation. 

IAN D. BERG, an associate of the firm, received his J.D. and B.A. from Northwestern 

University. Mr. Berg concentrates his practice in the area of securities litigation and he plays a 

significant role in investigating and evaluating potential cases, including proprietary claims and 

App. 108

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 108 of 128
direct actions on behalf of institutional clients. Prior to joining Schiffrin, Barroway, Topaz & 

Kessler, Mr. Berg primarily practiced in the areas of commercial litigation and land use on 

behalf of corporations and real estate investment trusts. He is licensed to practice law in 

Pennsylvania and Illinois. 

ROBERT W. BIELA, an associate of the firm, received his law degree from the Penn State 

Dickinson School of Law, where he served on the editorial board of the Environmental Law and 

Policy Journal. Mr. Biela received his undergraduate degree from West Chester University. Prior 

to joining the firm, Mr. Biela was an associate at Mager White and Goldstein, LLP. Mr. Biela is 

licensed to practice law in the Commonwealth of Pennsylvania and the United States District 

Court for the Eastern District of Pennsylvania. His practice focuses primarily in the area of 

securities litigation. 

KATHERINE B. BORNSTEIN, an associate of the firm, received her law degree from Emory 

University School of Law. Ms. Bornstein received her undergraduate degree from the University 

of Maryland. She is licensed to practice law in Pennsylvania and Maryland. Prior to joining 

Schiffrin Barroway Topaz & Kessler, Ms. Bornstein was an associate at Provost & Umphrey 

Law Firm, LLP, where she worked on a number of complex litigation issues. Ms. Bornstein 

concentrates her practice at Schiffrin Barroway Topaz & Kessler in the areas of ERISA, antitrust 

and consumer protection. 

JONATHAN R. CAGAN, an associate of the firm, received his law degree from the Temple 

University School of Law. Mr. Cagan received his undergraduate degree, cum laude, from 

Temple University. Mr. Cagan is licensed to practice law in New Jersey, and is admitted to the 

Third Circuit Court of Appeals. Mr. Cagan concentrates his practice in the area of securities 

litigation and specializes in discovery matters. 

EDWARD W. CIOLKO, an associate of the firm, received his law degree from Georgetown 

University Law Center, and an MBA from the Yale School of Management. Prior to joining the 

firm, he served as an Attorney Advisor to Commissioner Sheila F. Anthony at the Federal Trade 

Commission. He is licensed to practice law in the State of New Jersey, and has been admitted to 

practice before the United States District Court for the District of New Jersey. Mr. Ciolko 

concentrates his practice in the areas of antitrust, ERISA, and consumer protection. 

ALISON K. CLARK, an associate of the firm, received her law degree, cum laude, from Boston 

University School of Law, and received her undergraduate degree in Political Science, with 

honors, from Lehigh University. Prior to joining Schiffrin Barroway Topaz & Kessler, Ms. 

Clark was an attorney with a Fairfield County, Connecticut law firm, where she practiced in the 

areas of civil and commercial litigation, and real estate transactions. Ms. Clark is licensed to 

practice law in Connecticut, and has been admitted to practice before the United States District 

Court for the District of Connecticut. Ms. Clark concentrates her practice in the mergers and 

acquisitions and shareholder derivative department. 

MARK S. DANEK, an associate of the firm, received his undergraduate degree in Architecture 

from Temple University in 1996, and his law degree from Duquesne University School of Law 

App. 109

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 109 of 128
in 1999. Prior to joining Schiffrin Barroway Topaz & Kessler, Mr. Danek was employed as inhouse counsel of a real estate investment trust corporation that specialized in the collection of 

delinquent property tax receivables. He is licensed to practice law in the Commonwealth of 

Pennsylvania and has been admitted to practice before the Courts of the Commonwealth of 

Pennsylvania, the United States District Court for the Western District of Pennsylvania and the 

Supreme Court of the United States of America. Mr. Danek concentrates his practice in the area 

of securities litigation. 

BRADLEY A. DIRKS, an associate of the firm, received his J.D. from The University of Akron 

School of Law and a B.A. in Journalism and Political Science, cum laude, from the University of 

Wisconsin. He is a member of the State Bar of New Jersey, and has been admitted to practice 

before the United States District Court for the District of New Jersey. Prior to joining Schiffrin 

Barroway Topaz & Kessler, Mr. Dirks worked for an Atlantic City, New Jersey-based law firm 

where he focused on administrative law and regulatory issues in the casino gaming industry. Mr. 

Dirks concentrates his practice in the area of shareholder derivative litigation.

JENNIFER L. ENCK, an associate of the firm, received her law degree, cum laude, from 

Syracuse University College of Law in 2003 and her undergraduate degree in International 

Politics from The Pennsylvania State University in 1999. Ms. Enck also received a Masters 

degree in International Relations from Syracuse University’s Maxwell School of Citizenship and 

Public Affairs. Prior to joining Schiffrin Barroway Topaz & Kessler, Ms. Enck was an associate 

with Spector, Roseman & Kodroff, P.C. in Philadelphia, where she worked on a number of 

complex antitrust, securities and consumer protection cases. Ms. Enck is licensed to practice law 

in Pennsylvania. She concentrates her practice in the areas of securities litigation and settlement 

matters. 

ROBERT J. GRAY, an associate of the firm, received his law degree from the Temple 

University School of Law. Mr. Gray received Bachelor of Sciences degree from La Salle 

University with a dual major of Accounting and Finance. Prior to joining Schiffrin Barroway 

Topaz & Kessler, Mr. Gray was an associate at Philadelphia boutique litigation firm practicing in 

the areas of complex commercial litigation and corporate transactions. Mr. Gray also worked as 

in-house counsel for a small, publicly-traded holding company. 

Prior to beginning his law career, Mr. Gray worked as a forensic accountant for six years, 

conducting a variety of investigations for numerous governmental agencies and law firms. He 

received his C.P.A. license in 1997. 

Mr. Gray is licensed to practice law in Pennsylvania and New Jersey, and has been admitted to 

practice before the United States District Court for the Eastern District of Pennsylvania. He 

concentrates his practice in the area consumer protection. 

JOHN GROSS, an associate of the firm, received his law degree from Widener School of Law, 

and his undergraduate degree from Temple University. Mr. Gross is licensed to practice law in 

Pennsylvania, and has been admitted to practice before the United States District Court for the 

Eastern District of Pennsylvania. Prior to joining Schiffrin Barroway Topaz & Kessler, Mr. 

Gross was an insurance defense litigation associate at a large, Philadelphia based firm. Mr. Gross 

App. 110

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 110 of 128
now concentrates his practice in the areas of securities litigation, antitrust litigation and 

shareholder derivative actions. 

MARK K. GYANDOH, an associate of the firm, received his undergraduate degree from 

Haverford College and his law degree from Temple University School of Law. While attending 

law school Mr. Gyandoh served as the research editor for the Temple International and 

Comparative Law Journal. He also interned as a judicial clerk for the Honorable Dolores K. 

Sloviter of the U.S. Court of Appeals for the Third Circuit and the Honorable Jerome B. 

Simandle of the U.S. District Court for New Jersey. After law school Mr. Gyandoh was 

employed as a judicial clerk for the Honorable Dennis Braithwaite of the Superior Court of New 

Jersey Appellate Division. 

Mr. Gyandoh is the author of "Foreign Evidence Gathering: What Obstacles Stand in the Way of 

Justice?," 15 Temp. Int'l & Comp. L.J. (2001) and "Incorporating the Principle of Co-Equal 

Branches into the European Constitution: Lessons to Be Learned from the United States" found 

in Redefining Europe (2005). Mr. Gyandoh is licensed to practice in New Jersey and 

Pennsylvania and concentrates in the area of ERISA, antitrust and consumer protection. 

BENJAMIN J. HINERFELD is an associate at the firm, and concentrates his work in securities 

litigation. In 1996, he graduated from the University of Pittsburgh School of Law, where he 

served as Lead Note and Comment Editor of the Journal of Law and Commerce. From 1996 to 

1997, he clerked for the Hon. Sandra Schultz Newman of the Supreme Court of Pennsylvania. 

Prior to joining Schiffrin Barroway Topaz & Kessler, Mr. Hinerfeld worked in a securities 

litigation firm in Wilmington, Delaware. 

 

From 2000 to 2003, Mr. Hinerfeld was a writing consultant with the Undergraduate Writing 

Center at the University of Texas at Austin. During that time he also co-authored, with Dr. Sarah 

Jane Rehnborg and Catherine Fallon, “Investing in Volunteerism: The Impact of Service 

Initiatives in Selected Texas State Agencies” a report prepared by The RGK Center for 

Philanthropy and Community Service, LBJ School of Public Affairs. He received his bachelor's 

degree from Vassar College and a master’s degree in American History from the University of 

Texas at Austin. 

 

Mr. Hinerfeld is licensed to practice law in Pennsylvania. 

MICHAEL J. HYNES, an associate of the firm, received his law degree from Temple 

University School of Law, and is a graduate of Franklin and Marshall College. Mr. Hynes is 

licensed to practice law in Pennsylvania, New Jersey and Montana, and has been admitted to 

practice in the United States Court of Appeals for the Ninth Circuit, and the United States 

District Courts for the Eastern and Middle Districts of Pennsylvania. Prior to joining Schiffrin 

Barroway Topaz & Kessler, Mr. Hynes practiced law at Cozen O'Connor, where he concentrated 

on bankruptcy and commercial litigation. He was an attorney with the Defenders' Association of 

Philadelphia from 1991 to 1996, where he defended thousands of misdemeanor and felony cases. 

At Schiffrin Barroway Topaz & Kessler, Mr. Hynes concentrates his practice in the areas of 

securities litigation and shareholder derivative litigation. 

App. 111

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 111 of 128
TARA P. KAO, an associate of the firm, received her J.D. from Villanova University School of 

Law, where she was a Managing Editor of Student Works for the Villanova Law Review. Ms. 

Kao received her Bachelor of Science in Business/Finance, with honors, from Carnegie Mellon 

University. She is licensed to practice law in Pennsylvania, and concentrates her practice in the 

area of mergers and acquisitions and shareholder derivative actions. 

D. SEAMUS KASKELA, an associate of the firm, received his law degree from Rutgers School 

of Law – Camden, and received his undergraduate degree in Sociology from Saint Joseph’s 

University. Prior to graduating from law school and joining Schiffrin Barroway Topaz & 

Kessler, LLP, Mr. Kaskela was a law clerk with a large Philadelphia law firm, where he worked 

in the complex civil litigation department. Mr. Kaskela is licensed to practice law in 

Pennsylvania and New Jersey, and has been admitted to practice before the United States District 

Court for the Eastern District of Pennsylvania (pending) and the United States District Court for 

the District of New Jersey. Mr. Kaskela works in the firm's case development department 

JENNIFER L. KEENEY, an associate of the firm, received her law degree, cum laude, from 

Temple University Beasley School of Law, where she was the Special Projects Editor for the 

Temple International and Comparative Law Journal. Ms. Keeney earned her undergraduate 

degree in History, with honors, from Washington University in St. Louis in 2003. She is licensed 

to practice in Pennsylvania and concentrates her practice at Schiffrin Barroway Topaz & Kessler 

in the area of securities litigation. 

HAL J. KLEINMAN, an associate of the firm, received his law degree from The John Marshall 

Law School, and his undergraduate degree from Ithaca College. Mr. Kleinman is licensed in 

Illinois and Pennsylvania, and has been admitted to practice before the United States District 

Court for the Northern District of Illinois, the United States District Court for the Eastern District 

of Pennsylvania, the Court of Appeals for the Seventh Circuit, the Court of Appeals for the Third 

Circuit, and the United States Court of Claims. 

Prior to joining Schiffrin Barroway Topaz & Kessler, Mr. Kleinman practiced law in Chicago, 

where his practice concentrated in the area of Complex Litigation, Mass Torts and Class Actions. 

Mr. Kleinman was a member of the law and briefing committee that successfully obtained class 

certification in In re Hartmarx Securities Litigation, Case No. 01 C 7832 (N.D. Ill.). In addition, 

he was appointed to the Class Counsel Management Committee in Cress, et al. v. Sara Lee 

Corporation, Case No. 98 L 15072 (Cir. Ct., Cook County, Ill.). For his work in this matter, Mr. 

Kleinman was asked to be a guest lecturer at the University of Chicago Law School's Class 

Action Controversies Seminar and to discuss the Sara Lee litigation. He also was responsible for 

representing hundreds of clients in various Mass Torts, including MDL-1431, In re Baycol 

Products Liability Litigation; MDL-1373, In re Bridgestone/Firestone, Inc. ATX, ATX II and 

Wilderness Tires Products Liability Litigation; MDL-1203, In re Diet Drugs (Phentermine/ 

Fenfluramine/Dexfenfluramine) Products Liability Litigation; and MDL-926, In re Silicone Gel 

Breast Implants Product Liability Litigation. Mr. Kleinman concentrates his practice in the 

area of Mass Torts. 

ERIC LECHTZIN, an associate of the firm, received his law degree from the Temple 

University School of Law. Mr. Lechtzin received his undergraduate degree in Political Science 

App. 112

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 112 of 128
and Economics, magna cum laude, from Temple University, where he received Phi Beta Kappa 

honors. Mr. Lechtzin is licensed to practice law in Pennsylvania and New Jersey, and has been 

admitted to practice before the United States District Courts for the Eastern District of 

Pennsylvania and the District of New Jersey. 

Prior to joining Schiffrin Barroway Topaz & Kessler, Mr. Lechtzin was an associate with the 

firm of Grant & Eisenhofer, P.A., where his practice was concentrated in federal securities class 

actions and corporate governance litigation. Mr. Lechtzin spent the first ten years of his career at 

two large Philadelphia law firms where he represented corporate and public sector clients in a 

wide range of complex commercial litigation, including toxic torts, labor and employment, 

insurance, and environmental law. Mr. Lechtzin has extensive trial experience and has argued 

appeals before the Supreme Court of Pennsylvania and other appellate courts. Mr. Lechtzin 

concentrates his practice with Schiffrin Barroway Topaz & Kessler in the area of securities class 

action litigation and is Lead or Co-Lead Counsel in several class action securities cases currently 

pending nationwide. In addition, Mr. Lechtzin has been actively involved in a number of federal 

securities cases in which outstanding results were achieved, including the following: In re Global 

Crossing Access Charge Litigation, No. 04-MD-1630 (S.D.N.Y.), in which Schiffrin Barroway 

Topaz & Kessler served as Co-Lead Counsel on behalf of plaintiffs and helped obtain a 

settlement of $15 million from the company; In re Van der Moolen Holding N.V. Securities 

Litigation, No. 1:03-CV-8284 (S.N.D.Y.), in which Schiffrin Barroway Topaz & Kessler served 

as Co-Lead Counsel on behalf of plaintiffs and helped obtain a settlement of $8 million from the 

company; and Scott Tanne v. Autobytel, Inc. et al., No. CV 04-8987 (C.D. Cal.), in which 

Schiffrin Barroway Topaz & Kessler served as sole Lead Counsel on behalf of plaintiffs and 

obtained a settlement of $6.75 million from the company. 

JAMES A. MARO, JR., an associate of the firm, received his law degree from the Villanova 

University School of Law in 2000. He received a B.A. in Political Science from the Johns 

Hopkins University in 1997. Mr. Maro is licensed to practice law in Pennsylvania and New 

Jersey and is admitted to practice in the United States District Court for the Eastern District of 

Pennsylvania. He concentrates his practice in the area of mergers and acquisitions and 

shareholder derivative actions. 

RICHARD A. MANISKAS, an associate of the firm, received his law degree from Widener 

University School of Law, and received his undergraduate degree from the University of 

Pittsburgh. While in law school, Mr. Maniskas served as Internal Editor of the Widener Journal 

of Public Law. He is licensed to practice law in Pennsylvania and the District of Columbia, and 

has been admitted to practice before the United States District Court for the Eastern District of 

Pennsylvania. Mr. Maniskas works in the firm’s case development department. 

LISA MELLAS, an associate of the firm, received her law degree from the University of 

Florida College of Law and her undergraduate degree from the University of Florida. Prior to 

joining Schiffrin Barroway Topaz & Kessler, LLP, Ms. Mellas was an associate at White and 

Williams, LLP, where she practiced in the Property Department. Ms. Mellas is licensed to 

practice in New York, New Jersey and Pennsylvania, and has been admitted to practice before 

the United States District Court for the Eastern District of Pennsylvania, the Western District of 

App. 113

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 113 of 128
Pennsylvania, and the District of New Jersey. She concentrates her practice at Schiffrin 

Barroway Topaz and Kessler in the area of consumer protection and ERISA

JAMES H. MILLER, an associate of the firm, received his J.D. in 2005 from Villanova 

University School of Law, where he was enrolled in Villanova University’s J.D./M.B.A. 

program. Mr. Miller received his Master of Business Administration from Villanova University 

in 2005, and received his Bachelor of Chemical Engineering from Villanova University in 2002. 

Mr. Miller is licensed to practice law in Pennsylvania and concentrates his practice in the areas 

of mergers and acquisitions and shareholder derivative actions. 

CASANDRA A. MURPHY, an associate of the firm, received her law degree from Widener 

University School of Law and her undergraduate from Gettysburg College. Prior to joining 

Schiffrin Barroway Topaz & Kessler, LLP, Ms. Murphy was an associate at Post & Schell, P.C. 

where she practiced general casualty litigation. Ms. Murphy is licensed to practice in 

Pennsylvania and New Jersey, and has been admitted to practice before the United State District 

Court for the Eastern District of Pennsylvania. Ms. Murphy has lectured for the Pennsylvania 

Bar Institute and the Philadelphia Judicial Conference. She concentrates her practice at Schiffrin 

Barroway Topaz & Kessler in the areas of consumer protection, ERISA, pharmaceutical pricing 

and antitrust. 

CHRISTOPHER L. NELSON, an associate of the firm, received his law degree from Duke 

University School of Law, and his undergraduate degree in Business, Economics, and the Law 

from Washington University in St. Louis. Prior to joining Schiffrin Barroway Topaz & Kessler, 

Mr. Nelson practiced with the Philadelphia law firm of Berger & Montague, P.C., where he was 

a securities litigator. 

Mr. Nelson is admitted to practice law in the Commonwealth of Pennsylvania, the Supreme 

Court of the United States, the United States Court of Appeals for the Fourth, Fifth and Ninth 

Circuits, and the United States District Court for the Eastern District of Pennsylvania. 

Mr. Nelson concentrates his practice in the area of securities litigation, and is Lead or Co-Lead 

Counsel in numerous pending nationwide class action securities cases. 

MICHELLE M. NEWCOMER, an associate of the firm, received her law degree from 

Villanova University School of Law. Ms. Newcomer received her undergraduate degrees in 

Finance and Art History from Loyola College in Maryland in 2002. Ms. Newcomer is licensed to 

practice law in Pennsylvania and New Jersey. She concentrates her practice at Schiffrin 

Barroway Topaz & Kessler in the area of securities litigation. 

KAREN E. REILLY, an associate of the firm, received her law degree from Pace University 

School of Law, where she was a member of the Moot Court Board and National Moot Court 

Team. Ms. Reilly received her undergraduate degree from the State University of New York 

College at Purchase. She is licensed to practice law in Pennsylvania, New Jersey, New York, 

Connecticut and Rhode Island, and has been admitted to practice before the United States 

District Courts for the Eastern District of Pennsylvania, District of New Jersey, Southern and 

Eastern Districts of New York, and the District of Connecticut. Prior to joining Schiffrin 

App. 114

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 114 of 128
Barroway Topaz & Kessler, Ms. Reilly practiced at Pelino & Lentz, P.C., in Philadelphia, where 

she litigated a broad range of complex commercial cases. Ms. Reilly concentrates her practice in 

the area of securities litigation. 

STEVEN D. RESNICK, an associate of the firm, received his law degree from The Dickinson 

School of Law of The Pennsylvania State University, and his undergraduate degree, cum laude, 

from West Chester University. Mr. Resnick is licensed to practice law in Pennsylvania 

and New Jersey, and has been admitted to practice before the United States District Court for the 

Eastern District of Pennsylvania, the United States Court of Appeals for the Third Circuit, the 

United States District Court for the District of New Jersey and the United States District Court 

for the District of Nebraska. Prior to joining Schiffrin Barroway Topaz & Kessler, Mr. Resnick 

was an associate at the firm of German, Gallagher & Murtagh, where his practice concentrated in 

the defense of medical malpractice, products liability and premises liability. Mr. Resnick now 

concentrates his practice in the area of mass tort and product liability litigation. 

EMANUEL SHACHMUROVE, an associate of the firm, received his law degree from The 

University of Michigan Law School, where he was an Associate Editor of the Michigan Journal 

of Law Reform. Mr. Shachmurove received his Bachelor of Science in Economics, cum laude, 

from The Wharton School at the University of Pennsylvania, where he was a Joseph Wharton 

Scholar. Mr. Shachmurove concentrates his practice in mergers and acquisitions and shareholder 

derivative litigation. 

BHARATI O. SHARMA, an associate of the firm, received her law degree from the American 

University Washington College of Law, a Master of Public Administration from The George 

Washington University, and her undergraduate degree from the University of Pittsburgh. Ms. 

Sharma is licensed to practice law in Pennsylvania and New Jersey, and has been admitted to 

practice before the United States District Court for the District of New Jersey. 

Ms. Sharma is a former judicial law clerk to the Honorable Stephen Skillman, Superior Court of 

New Jersey, Appellate Division, and a former member of American University's International 

Law Review. She is the founder and current President of the South Asian Bar Association of 

Philadelphia. Ms. Sharma also serves on the Executive Committees of the North American South 

Asian Bar Association and the Philadelphia Bar Association Young Lawyer's Division. 

Prior to joining Schiffrin Barroway Topaz & Kessler, Ms. Sharma practiced complex civil 

litigation at a Philadelphia law firm. She now concentrates her practice in the areas of 

pharmaceutical and product liability litigation. 

BENJAMIN J. SWEET, an associate of the firm, received his juris doctor from The Dickinson 

School of Law, and his BA, cum laude, from the University Scholars Program of The 

Pennsylvania State University. While in law school, Mr. Sweet served as Articles Editor of the 

Dickinson Law Review, and was also awarded Best Oral Advocate in the ATLA Junior Mock 

Trial Competition. Prior to joining Schiffrin Barroway Topaz & Kessler, Mr. Sweet practiced in 

the Pittsburgh office of Reed Smith LLP, where he specialized in complex civil litigation. While 

at Reed Smith, Mr. Sweet co-authored "Assignability of Non-Compete Covenants," 74 Pa. Bar. 

Q. 64 (April 2003). Mr. Sweet is licensed to practice law in the Commonwealth of Pennsylvania, 

App. 115

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 115 of 128
the United States District Court for the Western District of Pennsylvania and the United States 

Court of Appeals for the Ninth Circuit. 

Mr. Sweet concentrates his practice in the area of securities litigation and has helped obtain 

several multi-million dollar settlements on behalf of class members in several nationwide federal 

securities class actions, including In re CVS Pharmacy, Inc. Secs. Litig., No. 01-11464 (D.Mass. 

2005) ($110 million recovery for Class members), In re Zomax Inc. Secs. Litig., No. 04-cv-1155 

(D.Minn. 2005) (multi-million dollar cash and stock recovery for Class members), In re 

Flextronics Int’l Ltd. Secs. Litig., No. 03-cv-2102 (N.D. Cal. 2004) ($4.25 million recovery for 

Class members) and In re Black Box Corp. Secs. Litig., No. 03-cv-412 (W.D. Pa. 2004) (multimillion dollar recovery for Class Members). Mr. Sweet is currently Lead or Co-Lead Counsel in 

several pending nationwide class action securities cases, including In re Tyco Int’l Ltd. Secs. 

Litig., MDL Docket No. 02-1335-B (D.N.H.) and In re PNC Financial Services Group, Inc. 

Secs. Litig., No. 02cv271 (W.D. Pa.). 

NICOLETTE TROPIANO, an associate of the firm, received her law degree from Temple 

University School of Law. Ms. Tropiano received her undergraduate degree in Economics and 

Business Administration with a concentration in Accounting and Finance from Ursinus College 

in 2001. Ms. Tropiano is licensed to practice law in Pennsylvania. She concentrates her practice 

in the area of securities litigation, and serves in the firm’s lead plaintiff department which 

involves working with clients, litigation strategy and lead plaintiff issues. 

MICHAEL C. WAGNER, is an associate of the firm, received his undergraduate degree in 

Government from Franklin & Marshall College, and his law degree from the University of 

Pittsburgh School of Law in 1996. Mr. Wagner is licensed to practice law in Pennsylvania, and 

he has been admitted to practice in the United States Court of Appeals for the Third Circuit, and 

United States District Courts for the Eastern and Western Districts of Pennsylvania, for the 

Eastern District of Michigan, and for the District of Colorado. 

Before joining Schiffrin Barroway Topaz & Kessler, Mr. Wagner worked at Rubin, Fortunato & 

Harbison, a boutique law firm in Paoli, PA, representing Fortune 100 corporations, as well as 

individuals and small businesses, in employment matters across the country. Mr. Wagner earlier 

worked for several years at Spector, Gadon & Rosen, in Philadelphia, concentrating his practice 

in complex commercial and corporate litigation. At Schiffrin Barroway Topaz & Kessler, Mr. 

Wagner focuses his practice in the areas of securities litigation and shareholder derivative 

litigation. 

JOSEPH A. WEEDEN, an associate of the firm, received his law degree from the University of 

North Carolina School of Law, where he received the Gressman-Politt Award for outstanding 

oral advocacy. Mr. Weeden also received his undergraduate degree from the University of North 

Carolina at Chapel Hill, where he was a Joseph E. Pogue Scholar. Prior to joining the firm, Mr. 

Weeden was an associate at Kaufman & Canoles, P.C., where he practiced in the areas of 

commercial and business law. Mr. Weeden is licensed to practice law in Virginia, and 

concentrates his practice in the area of complex ERISA litigation. 

GERALD D. WELLS, III, an associate of the firm, received his law degree from Temple 

University School of Law, where he served on the editorial board of the Environment Law & 

App. 116

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 116 of 128
Technology Journal. He is licensed to practice in Pennsylvania and New Jersey and has been 

admitted to practice before the United States District Court for the Eastern District of 

Pennsylvania, the United States District Court for the District Court of New Jersey, and the 

United States District Court for the Eastern District of Michigan. 

Mr. Wells concentrates his practice in the areas of antitrust, ERISA, and consumer protection, 

and FLSA/overtime litigation and has helped obtain several multi-million dollar settlements on 

behalf of class members, including the recent settlements in In re Bristol-Myers Squibb ERISA 

Litigation, No. 02-CV-10129 (LAP) ($41.22 million in cash plus structural remedies valued at up 

to $52 million) and Falk v. Amerada Hess Corp., et al., No. 03-CV-2491-FSH-PS ($2.25 million 

in cash plus structural remedies valued at up to $23.8 million); and In re Westar Energy Inc. 

ERISA Litig., No. 03-4032-JAR (D. Kan.) ($9.25 million cash settlement). Mr. Wells currently 

serves as counsel in several pending nationwide class and collective actions. 

ROBIN WINCHESTER, an associate of the firm, received her law degree from Villanova 

University School of Law, and received her undergraduate degree in Finance from St. Joseph’s 

University. Prior to joining Schiffrin Barroway Topaz & Kessler, Ms. Winchester served as a 

law clerk to the Honorable Robert F. Kelly in the United States District Court for the Eastern 

District of Pennsylvania. Ms. Winchester is licensed to practice law in Pennsylvania and New 

Jersey, and has been admitted to practice before the United States District Court for the Eastern 

District of Pennsylvania. She concentrates her practice in the area of shareholder derivative 

actions. 

TERENCE S. ZIEGLER, an associate of the firm, received his law degree from the Tulane 

University School of Law. Mr. Ziegler received a Bachelor of Business Administration degree 

with a concentration in Finance from Loyola University. Mr. Ziegler is licensed to practice law 

in the State of Louisiana, and has been admitted to practice before the United States Court of 

Appeals for the Fifth Circuit, the United States District Court for the Eastern District of 

Louisiana and the United States District Court for the Middle District of Louisiana. Mr. Ziegler 

concentrates his practice in the areas of consumer protection, ERISA, pharmaceutical pricing and 

antitrust. 

OF COUNSEL 

CHRISTIE A. CANNON, of counsel to the firm, received her law degree from Emory 

University School of Law and her undergraduate degree from Auburn University, magna cum 

laude. In law school Ms. Cannon was named to the Order of the Barristers, was one of twelve 

people from her class chosen to be on the Moot Court Special Teams, and served as the Director 

of Special Teams on the Moot Court Board of Directors. Ms. Cannon also served as one of three 

team members for the Georgia Intrastate Moot Court competition and as an alternate member for 

the National Moot Court Team.

Ms. Cannon has spent her legal career representing both plaintiffs and defendants in complex 

litigation around the United States and overseas, with a prominent emphasis on securities 

App. 117

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 117 of 128
litigation under federal and state securities laws. Ms. Cannon is licensed to practice law in 

Georgia and has been admitted to practice before the Eleventh Circuit Court of Appeals, the 

United States District Court for the Northern District of Georgia, and all Georgia trial and 

appellate courts. In 2005, Ms. Cannon was voted by her peers and named by Atlanta Magazine

and Law and Politics Magazine to be a Georgia Super Lawyer, placing her in the top 5 percent of 

attorneys and among the top 15 securities litigation attorneys in Georgia. 

Ms. Cannon is working extensively with partner David Kessler on In re Initial Public Offering 

Securities Litigation, Master File No. 21 MC 92 (SAS) (S.D.N.Y. Dec. 12, 2002), currently 

pending in the Southern District of New York.

ROBERT M. BRAMSON has more than twenty-five years of experience in the litigation of 

antitrust and consumer cases, class actions and other complex litigation. Mr. Bramson received 

his undergraduate degree in economics, summa cum laude, from the University of California at 

Berkeley in 1977, and obtained his law degree from the Boalt Hall School of Law in 1981. Mr. 

Bramson is a member of the California Bar. 

Mr. Bramson has represented both plaintiffs and defendants in numerous antitrust cases, and has 

acted as lead counsel in two such actions taken to trial - Pacific West Cable Co. v. City of 

Sacramento, et al. (E.D. Cal.) ($12 Million settlement on 24th day of trial, at close of plaintiff's 

case; Sherman Act §2 monopolization claims) and Coleman et al. v. Sacramento Cable 

Television (Sacramento Sup. Ct.) ($2.4 Million judgment after 17-day trial; class action/B & P 

§17200 case; B & P §17204 discriminatory pricing claims). 

Mr. Bramson specializes in antitrust, business torts and communications litigation, as well as in 

class action cases. He served for many years on the Board of Directors of the National 

Association of Consumer Advocates and co-chaired its class action committee. He is a 

contributing author to the National Consumer Law Center's publication Consumer Class 

Actions. He acted as reporter for the National Association of Consumer Advocates in preparing 

its influential Standards and Guidelines For Consumer Class Actions, 176 F.R.D. 375 (1997). 

Mr. Bramson's lecture topics have included "Strategic and Ethical Issues in Litigating 17200 

Cases" (Bar Association of San Francisco, San Francisco 2001), "Equitable Remedies In Class 

Actions and Under California's Section 17200 Statute" (National Association of Consumer 

Advocates, Chicago 2000), "Ethical Issues Arising in Class Action Settlements" (National 

Consumer Law Center, Wash. DC and San Diego 1999 and 1998) "California's Business & 

Professions Code Section 17200" (California Bar Association, Lake Tahoe 1997), "Preparation 

of Competitive Business Practices Cases" (Continuing Education of the Bar, Sacramento 1997), 

and "The Cable Communications Policy Act of 1984" (California State University, Fullerton 

1993). 

In addition to serving as Of Counsel to Schiffrin Barroway Topaz & Kessler, Mr. Bramson is a 

partner in the law firm of Bramson, Plutzik, Mahler & Birkhaeuser, LLP, of Walnut Creek, 

California. 

App. 118

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 118 of 128
ALAN R. PLUTZIK specializes in complex business litigation in state and federal courts 

throughout the United States. Areas of particular emphasis include class actions, securities fraud 

and corporate governance litigation, consumer law, antitrust, constitutional and communications 

law. Mr. Plutzik is admitted to practice in California and the District of Columbia (inactive 

member), and is a member of the bars of the United States Supreme Court, the Second, Eighth, 

Ninth, Tenth and District of Columbia Circuits and numerous federal district courts throughout 

the United States. 

Mr. Plutzik received his law degree from the University of California at Berkeley’s Boalt Hall 

School of Law in 1977. He received his undergraduate degree from St. John’s College, 

Annapolis, Maryland, in 1971, and also holds an M. A. from Stanford University. Over the 

course of his twenty-nine year career, Mr. Plutzik has also handled a wide variety of class 

actions and derivative cases. He has represented, among other clients, corporate shareholders 

and limited partners challenging conduct by their general partners, officers or directors; 

consumers and businesses harmed by price-fixing and other anticompetitive conduct; 

consumers in actions against insurance companies, banks and other lenders; investors in 

securities fraud cases and derivative suits; employees in ERISA and wage/hour cases; 

purchasers of mislabeled and defective products; victims of toxic pollution; persons harmed by 

defective products; and cellular telephone and cable television subscribers. 

Mr. Plutzik has also handled a substantial number of cases that raise First Amendment and other 

constitutional issues, and has represented broadcasters, cable television companies, 

communications common carriers and consumers in litigation and in administrative proceedings 

before the Federal Communications Commission and the California Public Utilities 

Commission. 

Mr. Plutzik has written or lectured on topics that include class actions, California consumer law, 

substantive and procedural issues under the federal securities laws, First Amendment issues 

applicable to new media, cable television franchising and cable television companies’ access to 

utility poles and real estate developments. He has appeared as a guest radio commentator on the 

Len Tillem Show on KGO-Radio in San Francisco, discussing class actions, consumer 

protection law and investor rights. 

Mr. Plutzik has served as a judge pro tem on the Contra Costa County Superior Court. He is 

also President of the Warren W. Eukel Teacher Trust, a community-based charity that honors 

outstanding teachers in Contra Costa County, California. 

In addition to serving as Of Counsel to Schiffrin Barroway Topaz & Kessler, Mr. Plutzik is a 

partner in the law firm of Bramson, Plutzik, Mahler & Birkhaeuser, LLP, of Walnut Creek, 

California. 

L. TIMOTHY FISHER specializes in consumer and securities class actions and complex 

business litigation. He has been actively involved in several cases in which multi-million dollar 

App. 119

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 119 of 128
recoveries were achieved for consumers and investors. Mr. Fisher has handled cases involving a 

wide range of issues including nutritional labeling, health care, telecommunications, corporate 

governance, unfair business practices and fraud. Mr. Fisher is a member of the California Bar. 

Mr. Fisher received his Juris Doctorate from Boalt Hall at the University of California at 

Berkeley in 1997. While in law school, he was an active member of the Moot Court Board and 

participated in moot court competitions throughout the United States. In 1994, Mr. Fisher 

received an award for Best Oral Argument in the first year moot court competition. 

In 1992, Mr. Fisher graduated with highest honors from the University of California at Berkeley 

and received a degree in political science. Prior to graduation, he authored an honors thesis for 

Professor Bruce Cain entitled "The Role of Minorities on the Los Angeles City Council." He is 

also a member of Phi Beta Kappa. 

In addition to serving as Of Counsel to Schiffrin Barroway Topaz & Kessler, Mr. Fisher is an 

associate in the law firm of Bramson, Plutzik, Mahler & Birkhaeuser, LLP, of Walnut Creek, 

California. 

CONSULTANTS 

KEVIN P. CAULEY serves in the firm’s business development and institutional relations 

department. Mr. Cauley is a graduate of Temple University. Prior to joining the firm, Mr. Cauley 

was Director of Business Development for a multi-family office in New York City. Mr. Cauley 

also has prior experience in institutional fiduciary investment consulting, money manager 

selection, best trade executions, and asset allocation modeling. He has held the Series 7, 24, 63, 

and 65 licenses with the NASD. Mr. Cauley has also done political consulting in coordinating 

and directing various aspects of field operations for local, state, and national campaigns in 

Southeastern Pennsylvania. He is also an active member of The Pennsylvania Future Fund, 

A.O.H. Division 88 “Officer Danny Boyle Chapter,” The Saint Andrews Society, The Friendly 

Sons of Saint Patrick, The Clover Club of Philadelphia, The Foreign Policy Research Institute, a 

Board Member of The Princeton Committee on Foreign Relations, and is an elected member to 

The Pennsylvania Society and The Union League of Philadelphia, where he serves on the Armed 

Services Committee. 

DAVID RABBINER serves as Schiffrin Barroway Topaz & Kessler's Director of Investigative 

Services. As the firm's lead investigations necessary to further and strengthen the firm's classaction litigation efforts. Although his investigative services are primarily devoted to securities 

matters, Mr. Rabbiner routinely provides litigation support, conducts due diligence, and lends 

general investigative expertise and assistance to the firm's other class-action practice areas. Mr. 

Rabbiner plays an integral role on the firm's legal team, providing critical investigative services 

to obtain evidence and information to help ensure a successful litigation outcome. Before joining 

Schiffrin Barroway Topaz & Kessler, Mr. Rabbiner enjoyed a broad-based, successful career as 

an FBI Special Agent, including service as an Assistant Special Agent in Charge, overseeing 

multiple criminal programs, in one of the Bureau's largest field offices. He holds an A.B. in 

English Language and Literature from the University of Michigan and a Juris Doctor from the 

University of Miami School of Law. 

App. 120

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 120 of 128
SKIP HETTEL, an investigator for the firm, received his undergraduate degree in Political 

Science from Syracuse University. Prior to joining Schiffrin Barroway Topaz & Kessler, Mr. 

Hettel was a paralegal for Miller, Alfano & Raspanti, P.C., where he worked on white-collar 

criminal defense and in the Special Master's office for Fen-Phen litigation. Previously, he served 

on the Jim Eisenhower for Attorney General Campaign. 

App. 121

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 121 of 128
EXHIBIT C

App. 122

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 122 of 128
Page 1

CLAXTON & HILL, PLLC

Roger F. Claxton. Mr. Claxton was admitted to the State Bar of Texas in 1980. He

practiced law with Kilgore & Kilgore, Inc. from 1980 through 1998, when he and Mr.

Hill formed Claxton & Hill, PLLC. He holds a Bachelor’s degree in Geology, and a J.D.

degree, from Southern Methodist University. His practice emphasizes business and

commercial litigation, including numerous class action cases in both state and federal

courts, and he has had extensive experience in the management and prosecution of

complex litigation. Mr. Claxton is “AV” in Martindale-Hubbell.

Robert J. Hill. Mr. Hill was admitted to the State Bar of Texas in 1990. He practiced

law with Kilgore & Kilgore, Inc. from 1990 through 1998, when he and Mr. Claxton

formed Claxton & Hill, PLLC. He holds a B.B.A. degree in Finance from the University

of Texas and a J.D. degree from Texas Tech University School of Law. His practice is

primarily litigation, with substantial experience in class action cases involving securities

fraud in both state and federal courts. Mr. Hill is “AV” in Martindale-Hubbell.

Our litigation practice and experience covers a wide range of areas, on both the plaintiff

and defense sides, including securities fraud, real estate, commercial contracts and transactions,

intellectual property and theft of trade secrets, toxic torts, oil and gas, common law and statutory

fraud, breach of fiduciary duty, consumer fraud and deception, wrongful death and negligence,

insurance coverage and subrogation and many class action cases. It includes trials in state and

federal courts and appeals to the state and federal appellate courts. As examples of the breadth of

our experience beyond class actions (discussed below), we have litigated cases in the following

areas:

• Successful defense, through trial, of claims of fraud, conspiracy and breach of

fiduciary duty in an international export business.

• Successful defense of complex, multi-party mass toxic tort claims involving a

Superfund site and claims of surface and groundwater contamination.

• Pursuit and defense of numerous cases involving claims for misappropriation of

intellectual property including website concept, design and appearance, trade

names, trade dress and trade secrets and other proprietary information.

App. 123

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 123 of 128
Page 2

• Successful defense of claims of theft of trade secrets, conspiracy and RICO

violations involving semiconductor manufacturing equipment and design

information.

• Recovery of substantial sums in numerous cases involving fraud and

misrepresentation in lending transactions, oil and gas transactions, falsification of

records and Ponzi schemes.

• Successful pursuit of several claims for employee theft, embezzlement, forgery

and dishonesty, including trial of non-dischargeability in bankruptcy. Disloyal

employees of more than one of our clients are serving, or have served, prison

terms for stealing from our clients.

• Successful litigation of claims of fraud, misrepresentation, breach of fiduciary

duty, partnership disputes and attorney misconduct involving substantial note

secured by downtown Dallas hotel.

• Successful defense, through trial, of wrongful death lawsuit for manufacturing

defects, involving death of parents leaving behind several orphans.

• Successful defense of insurer in bad faith insurance practices claim involving

accidental shooting.

• Trial of wrongful death claim (murder) based on inadequate security.

• Successful pursuit and litigation of claims against major telephone company for

breach of contract for information technology services.

• Successful defense of bank president on claims of defalcation and dishonesty and

successful pursuit of his counterclaims for defamation and other damages.

• Successful litigation of claims for breach of unusual insurance policies insuring

against major losses in oil well drilling and completion activities, involving

collecting from foreign insurer in Lloyds of London syndicates and discovery in

the United States, England and Australia.

• Successful litigation of numerous oil and gas cases, including claims for both

cancellation and enforcement of oil and gas leases, oil and gas ownership

disputes, drilling contract disputes, disputes involving gas purchase contracts,

“take or pay” provisions and injunctions.

• Pursuit of claims and defense of claims involving construction disputes, both

commercial and residential.

App. 124

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 124 of 128
Page 3

• Successful litigation and trial of claims involving commercial real estate and

leases, including injunctions to prevent waste, disposal and hiding of collateral.

• Successful litigation of numerous cases involving non-compete, non-solicitation

and non-disclosure agreements and related injunctions.

• Securities arbitrations involving claims against brokers and dealers

Our practice and experience also includes extensive securities litigation and many class

actions. We have participated and actively assisted in these and other class action securities and

consumer cases:

In re LTV Securities Litigation, 88 FRD 134, 150 (N.D.Tex. 1980) (in which Mr.

Claxton was instrumental in the damages analysis and proof, using, in this early class

action securities case, statistical analysis now considered fundamental in such cases, and

devising a computer program to estimate the damages, correcting for “ins and outs,” in a

case involving several different debt and equity securities) 

Walton v. American Express Company, Cause No. 92-9181-A (14 Judicial District, th

Dallas County, Texas). Messrs. Claxton and Hill, along with their New York cocounsel, successfully brought suit on behalf of a nationwide class for invasion of privacy

and misuse of personal information. After extensive, difficult discovery, we obtained

certification (under T.R.C.P. 42) of a class consisting of 39 million then current and

former American Express cardholders. Certification of the class was upheld on appeal,

and after remand and further discovery demonstrating how the class could be efficiently

notified, the case was settled. To our knowledge, this is the largest class ever certified by

a Texas court.

Stern, et al. v. Jerome, et al., Civil Action No. 3:94-CV-2236 (N.D. Tex) and Fisher

Bond Fund v. Marvin Davis, et al., Civil Action No. 3:95-CV-1204-D (N.D. Tex) (class

action securities case in which a cash settlement in the total amount of $28,200,000 was

reached)

Tidel Securities Litigation, 220 F.R.D. 491 (S.D. Tex. 2004) (class action securities case

settled shortly before trial, after all pretrial materials were filed, and after certification

which followed three day evidentiary hearing before Judge Hittner, with Mr. Claxton

principally responsible for the core issue of market efficiency and presentation and cross

examination of experts at the class certification hearing).

App. 125

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 125 of 128
Page 4

Texas Instruments, Inc. Securities Litigation in Judge Sanders’ Court (class action

securities case in which a $12 million settlement fund was obtained for the plaintiff class)

Dr. Pepper/Seven Up Securities Litigation (N.D. Tex.)(class action securities case

involving failure to disclose existence of acquisition talks; settled before trial)

Stevens Graphics, Inc. Securities Litigation (N.D. Tex.)(class action securities case which

settled shortly before trial, with Messrs. Claxton and Hill principally responsible for trial

preparation)

Neidich v. Geodyne Resources, Inc., Cause No. 94-052860 (127 Judicial District, Harris th

County, Texas). Messrs. Claxton and Hill were Texas counsel for a group of plaintiffs

asserting, on behalf of a nationwide class of investors, various state law claims arising out

of publicly traded limited partnership interests. The case was coordinated with a laterfiled case in the United States District Court for the Southern District of New York and a

class was certified under T.R.C.P. 42. Messrs. Claxton and Hill worked closely with a

committee of plaintiffs’ counsel and provided assistance with the substantive oil and gas

issues as well as assisting with discovery and trial preparation. The cases were ultimately

settled for $125 million. 

Delta Drilling Company Securities Litigation (class action securities case in which a

settlement was approved by Judge Fish)

Southland Corporation Securities Litigation (class action securities case in which a

settlement was reached with a value in excess of $20 million)

Finkel v. Docutel/Olivetti Corporation et al. (in which a settlement was approved by

Judge Maloney, which was argued before the Fifth Circuit, in which the fraud on the

market doctrine was adopted by the Fifth Circuit, and which was appealed to the United

States Supreme Court and considered by the Supreme Court in connection with its

decision recognizing the fraud on the market doctrine)

Teichler v. DSC Communications Corp. (class action securities case in which a $30

million settlement was approved by Judge Maloney)

International Telecharge, Inc. Securities Litigation (class action securities case resulting

in a settlement approved by Judge Cummings)

Loran v. Furr's Bishop's, Inc. (class action securities case in which Mr. Claxton was the

lead counsel and in which a settlement was approved by Judge Solis)

Convex Computer Corp. Securities Litigation (N.D. Tex.)(class action securities case;

settlement approved)

Stewart & Stevenson Securities Litigation (S.D. Tex.)(class action securities case;

settlement approved)

App. 126

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 126 of 128
Page 5

ProNet, Inc. Securities Litigation (N.D. Tex. and Dallas County District

Court)(proceedings coordinated and settlements approved)

Hinerfeld v. Physicians Reliance Network, Inc., Cause No. 96-09903-A (14 Judicial th

District Court, Dallas County, Texas)(Messrs. Claxton and Hill were lead Texas counsel

for plaintiffs asserting violations of the Texas Securities Act. Case was settled along with

a companion case in the United States District Court for the Northern District of Texas). 

FirstPlus Securities Litigation (N.D. Tex.)(class action securities case; settlement

approved)

CPS Systems Securities Litigation (N.D. Tex.)(class action securities case; settlement

approved)

Virbac Securities Litigation (N.D. Tex., Fort Worth Division)(class action securities case;

settlement approved by Judge Means)

Churchill v. Sage U.S. Holdings, Inc., Cause No. 99-05864-F (116 Judicial District, th

Dallas County, Texas). Messrs. Claxton and Hill were Texas counsel in this consumer

class action alleging defective computer software. A nationwide class of purchasers was

certified under T.R.C.P. 42 and class members were compensated in a settlement.

Schwartz v. Compaq Computer Corp., Cause No. 97-55962 (295 Judicial District, Harris th

County, Texas). Messrs Claxton and Hill were Texas counsel in this consumer class

action alleging certain defects in computers. A nationwide class was certified under

T.R.C.P 42 and compensated in a settlement.

Clarkson v. Greyhound Lines, Inc., Cause No. 96-11329-C (68 Judicial District Court, th

Dallas County, Texas). Messrs. Claxton and Hill were Texas counsel, principally

responsible for this class action which asserted non-removable claims for violation of

certain federal securities laws. A nationwide class was certified under T.R.C.P. 42 and

compensated in a settlement.

PLA, Llc v. Advanced Neuromodulation Systems, Inc. (E.D. Tex, Sherman Division)(class

action securities case; settlement approved)

Culp v. Gainsco, Inc., (N.D. Tex, Fort Worth Division)(class action securities case;

settlement approved by Judge Means)

Claxton & Hill, PLLC is currently counsel in a number of other class action and

stockholder derivative cases presently pending in state and federal courts within Texas, including

Allegiance Telecom Securities Litigation (N.D. Tex., Dallas Division; class certified and

certification on appeal to Fifth Circuit); SourceCorp Securities Litigation (N.D. Tex., Dallas

App. 127

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 127 of 128
Page 6

Division); Zix Corporation Securities Litigation (N.D. Tex., Dallas Division); Plumbers and

Pipefitters Local 636 v. Zale Corporation (N.D. Tex., Dallas Division); Centex Corporation

ERISA Litigation (N.D. Tex., Dallas Division); Clear Channel Communications Derivative

Litigation (255 District Court - Houston); Michaels Stores Litigation (298 District Court - th th

Dallas); Sabre Holdings Litigation (236 District Court - Fort Worth); and United Surgical th

Litigation (134 District Court - Dallas).

th

App. 128

Case 3:04-cv-01931-K Document 80 Filed 04/13/2007 Page 128 of 128