WELCOME TO THE CARBONITE SECURITIES LITIGATION WEBSITE

The purpose of this website is to inform you of the pendency of the class action (the “Litigation”) between Construction Industry and Laborers’ Joint Pension Trust (“Lead Plaintiff”) and Carbonite, Inc. ("Carbonite"), Mohamad S. Ali, and Anthony Folger (“Individual Defendants” and, collectively, “Defendants”); the proposed $27.5 million settlement reached therein (the “Settlement”); and the hearing (the “Settlement Hearing”) to be held by the Court to consider the fairness, reasonableness, and adequacy of the Settlement, as set forth in the Stipulation of Settlement dated January 31, 2024 (the “Stipulation”), by and between Lead Plaintiff and Defendants (the “Settling Parties”). The Notice and website describe what steps you may take in relation to the Settlement and this class action.

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

The Court in charge of the Litigation is the United States District Court for the District of Massachusetts, and the case is known as Luna v. Carbonite, Inc., et al., No. 1:19-cv-11662-LTS. The case has been assigned to the Honorable Leo T. Sorokin. The entity representing the Class is the “Lead Plaintiff,” and the individuals and entity it sued and who have now settled are called the Defendants.

WHAT IS THIS LAWSUIT ABOUT?

As more fully described in the Notice of Pendency and Proposed Settlement of Class Action (the "Notice"), Lead Plaintiff filed the Consolidated Amended Complaint (“Complaint”) alleging violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”) alleging that throughout the Class Period (between October 18, 2018 and July 25, 2019, inclusive), Defendants made materially false and misleading statements. The Complaint further alleges that the intended purpose and effect of Defendants' false and misleading statements was to artificially inflate Carbonite's stock price throughout the Class Period. The Complaint alleges that the truth was ultimately revealed on July 25, 2019, reducing Carbonite’s revenue guidance for the remainder of 2019. The Complaint alleges that, as a result the price of Carbonite’s stock dropped precipitously, resulting in millions of dollars in investor losses.

The parties conducted extensive fact and expert discovery, as well as class certification-related expert discovery, and litigated a number of discovery disputes. In all, Defendants and third parties produced more than 484,000 pages of documents, and the parties conducted 16 fact and expert depositions.

Lead Plaintiff and Defendants participated in a voluntary confidential mediation session with David M. Murphy, of Phillips ADR, an experienced mediator, on May 9, 2023. The mediation session was preceded by submission of mediation statements by the Settling Parties. The Settling Parties engaged in good faith negotiations but did not reach a settlement and litigation continued. Following numerous additional settlement discussions, on November 30, 2023, the parties agreed to settle the Litigation in return for a cash payment of $27.5 million to be paid by Defendants and/or their insurers on behalf of Defendants, for the benefit of the Class, subject to the negotiation of the terms of a Stipulation of Settlement and approval by the Court. The Stipulation (together with the Exhibits thereto) reflects the final and binding agreement among the Settling Parties.

WHAT DOES THE SETTLEMENT PROVIDE?

The Settlement provides that, in exchange for the release of the Released Claims (as defined in the Notice) and dismissal of the Litigation, Defendants have agreed to pay or cause to be paid $27.5 million in cash to be distributed after taxes, tax expenses, notice and claims administration expenses, and approved fees and expenses, pro rata, to Class Members who send in a valid Proof of Claim form pursuant to the Court-approved Plan of Allocation. The Plan of Allocation is described in more detail on pages 9-11 of the Notice.

ADDITIONAL INFORMATION

Although the information in this website is intended to assist you, it does not replace the information contained in the Notice and Stipulation, both of which can be found and downloaded by clicking on the Case Documents tab above. We recommend that you read the Notice and other relevant case documents carefully. You may also wish to read the answers to Frequently Asked Questions provided on this website.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

IMPORTANT DATES AND DEADLINES