July 2010 - All persons who purchased or otherwise acquired the publicly traded securities of Herley industries, inc. during the period from october 1, 2001 through June 14, 2006, inclusive, (the “class period”) and who allegedly sustained a loss as a result of the acquisition (the “class”). If approved by the Court, the proposed Settlement will create a $10,000,000 Settlement Fund for the benefit of eligible investors who purchased or otherwise acquired common stock of Herley Industries, Inc. (“Herley” or the “Company”) during the Class Period. The Settlement would resolve claims in a class action lawsuit alleging that Herley and certain of its officers and directors misled investors by making certain misrepresentations and omissions in Herley’s public statements, which had the effect of inflating Herley’s stock price (the “Action”). The Class is represented in the Action by the court-appointed Lead Plaintiff and Class Representative, Norfolk County Retirement System (“Class Representative”).

June 2006 - A class action lawsuit alleging that Herley and certain of its officers and directors misled investors by making certain misrepresentations and omissions in Herley’s public statements, which had the effect of inflating Herley’s stock price (the “Action”). Defendants Herley and Lee Blatt (“Blatt”), Herley’s former Chief Executive Officer, were indicted by the federal government for allegedly engaging in fraud in connection with three contracts with the United States government (the “Indictment”). The Indictment contained thirty-five counts.

As a result of the Indictment, on June 9, 2006, the United States Navy suspended four of Herley’s facilities from, among other things, receiving new contracts from the United States military subject to certain exceptions. At the time of the announcement of the Indictment and suspension Herley’s stock price declined. It is this decline which the Class Representative alleges caused damages to the Class. The suspension of Herley’s four divisions was lifted in October of 2006.

On May 5, 2008, Herley entered into a plea agreement, pursuant to which Herley pleaded guilty to two felony counts of obstruction of a federal audit. Pursuant to the plea agreement, the government withdrew the remaining thirty-three counts against the Company. Blatt pleaded guilty to a misdemeanor tax violation that was not a count charged in the Indictment. Pursuant to his plea agreement, all of the charges in the Indictment against Blatt were withdrawn. During the Class Period, Herley issued public statements to its investors which, among other things, discussed Herley’s relationship with its customers, including its relationship with the United States government. Herley also advised its investors in public statements that it believed that it had materially complied with government contracting regulations and laws during the relevant time period. The Class asserted that those public statements were materially false and misleading since they failed to disclose: (i) Herley’s alleged wrongful conduct vis-à-vis the government, and (ii) that Herley was the under investigation by the government and that Blatt was the target of that government investigation.