In the Matter of Bardman, et al.
Case No. 16-cv-02023-RS (N.D. Cal.)

On April 19, 2016, the Commission instituted and simultaneously settled cease-and-desist proceedings (the "Order") against Logitech International, S.A. ("Logitech"), Michael Doktorczyk, and Sherralyn Bolles, CPA (collectively, the "Respondents"). In the Order, the Commission found that, from 2009 to 2014, Logitech violated the federal securities laws with recurring instances of improper accounting in three separate areas: (1) Logitech's fraudulent accounting for the write-down of a failed product in its fiscal year 2011 ("FY11") financial statements; (2) the Respondents' improper accounting for Logitech's warranty liabilities in the FY12 and FY13 financial statements and failure to correct, in the FY13 financial statements, a known error in not amortizing intangibles from a prior acquisition; and (3) books and records, reporting, and control violations by Logitech pertaining to its revenue recognition in its Americas region in FY09. The Commission ordered the Respondents to pay a total of $7,575,000.00 in civil money penalties to the Commission, to be held pending a decision whether the Commission, in its discretion, will seek to distribute the funds, pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, as amended or transfer the funds to the U.S. Treasury. See the Commission's Order: Release No. 34-77644. 

In related proceedings, on April 18, 2016, the Commission filed a complaint in the U.S. District Court for the Northern District of California, charged Erik Bardman ("Bardman") and Jennifer Wolf ("Wolf"), the former Logitech chief operating officer and acting controller, respectively, with fraud and other violations. The Commission alleges in the Complaint that Bardman and Wolf fraudulently inflated Logitech's FY11 financial results by $30.7 million, or over 27%, in order to meet earnings guidance. This litigation is still pending. See Complaint. 

On February 27, 2018, the Commission issued an order establishing a Fair Fund for the monies paid by the Respondents.  See the Commission’s Order: Release No. 34-82783. 

On March 30, 2018, the Commission issued an order appointing Garden City Group, LLC (n/k/a Epic Class Action and Claims Solutions, Inc.) as the Fund Administrator of the Fair Fund, and set the administrator's bond at $7,575,000.00. See the Commission's Order: Release No. 34-82972.

On September 6, 2018, the Commission published a notice of proposed plan and opportunity to comment and simultaneously posted a proposed plan of distribution (the “Proposed Plan”). The notice provided the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice: Release No. 34-84044 and Proposed Plan.

On October 26, 2018, the Commission issued an order approving the corrected plan of distribution and simultaneously posted the approved corrected plan of distribution (the “Plan”). See the Commission’s Order: Release No. 34-84493 and the Plan.

The Plan proposes to distribute the funds currently in the Fair Fund, less taxes, fees, and expenses, to investors who purchased shares of Logitech common stock on the Nasdaq Global Select Market at inflated prices during the period from May 28, 2011 through July 27, 2011, inclusive, and who suffered losses in the value of their investment subsequent to disclosures by the Respondents.

On November 5, 2020, the Commission issued an order directing the transfer of $2,892,751.29 from the Fair Fund to the Fair Fund’s escrow account at The Huntington National Bank for distribution by the Fund Administrator in accordance with the Plan. See the Commission’s Order: Release No. 34-90347.

On July 26, 2021, the Commission published a notice of the second proposed plan of distribution and opportunity for comment and simultaneously published the proposed plan of distribution (“Proposed Plan”). The notice provides the public with 30 days to submit their comments on the Proposed Plan. See the Commission’s Notice: Release No. 34-92498 and the Proposed Plan.

On September 20, 2021, the Commission issued an order approving the Second Proposed Plan and simultaneously posted the approved second plan of distribution (the “Second Plan”). See the Commission’s Order: Release No. 34-93062 and the Second Plan.

The Second Plan provides for the distribution of the funds remaining in the Fair Fund after the completion of the initial distribution pursuant to the Plan, plus accumulated interest, less taxes, fees, and expenses, to compensate investors who purchased Logitech ordinary stock on the SIX Swiss Exchange (the “SIX Claimants”) according to the methodology set forth in the Second Plan.

On June 15, 2023, the Commission issued an order approving the disbursement of $3,464,222.60 from the Fair Fund to be added to the $47,717.08 remaining in the Fair Fund’s escrow account, for a total distribution of $3,511,939.68 in accordance with the Second Plan.  See the Commission’s Order: Release No. 34-97729.

For more information, please contact the Fund Administrator:

Epic Class Action and Claims Solutions, Inc.
Telephone Number: 877-919-5896
Website: http://www.logitechfairfund.com
Email: Questions@logitechfairfund.com