CADENCE DESIGN SYSTEMS, INC.

Summary of Case: A securities class action has been filed against Cadence Design Systems, Inc. (Ticker: CDNS) ("Cadence" or the "Company") on behalf of all comon stock purchasers from April 23, 2008 through October 22, 2008 (Class Period) in the United States District Court for the Northern District of California.  

The complaint alleges that during the Class Period, defendants misrepresented Cadence's financial performance and prospects, overstated its revenues, and caused it to file false and misleading financial statements with the SEC.  More specifically, defendants allegedly caused Cadence to improperly report approximately $24 million in revenue in the first quarter of 2008 and in the six months ended June 28, 2008 that will not be earned until the later quarters and, therefore, should be properly recognized ratably over the duration of the customer contracts.   On October 15, 2008, the Company announced the departures of its Chief Executive Officer and four other senior executives.  In response to this surprise announcement, the price of Cadence common stock dropped approximately 15%.  Merely a week later, on October 22, 2008, defendants stunned investors by acknowledging that the Company was reviewing the recognition of revenue related to customer contracts signed in the first quarter of 2008 and that it expected to restate its financial statements not only for that quarter, but also the first half of 2008.  As a result of these disclosures, Cadence's stock price dropped another 25%, as the artificial inflation caused by defendants' false and misleading statements came out of the stock price.