Epocrates Securities Litigation
HomeCase DocumentsContact Us

Welcome to the Epocrates Securities Litigation Website

This website has been established to provide general information regarding the proposed settlement of the action entitled Police and Fire Retirement System of the City of Detroit v. Crane et al., Case No. 13-cv-00945-VC pending in the United States District Court for the Northern District of California, San Francisco Division (the "Court"). The capitalized terms used on this website and not defined herein shall have the same meanings ascribed to them in the Stipulation of Settlement (the "Stipulation") dated October 30, 2015. Your rights may be affected by this settlement if you purchased Epocrates, Inc. common stock ("Epocrates") during the period February 1, 2011, through and including August 9, 2011.

As more fully described in the Revised Notice of Proposed Settlement of Class Action, Motion for Attorneys' Fees and Expenses, and Settlement Hearing (the "Notice"), Lead Plaintiff alleged that Defendants knowingly or with deliberate recklessness engaged in a scheme to manipulate the price of Epocrates common stock. Epocrates was a Delaware corporation with its principal executive offices located in San Mateo, California. During the Settlement Class Period, Epocrates common stock traded on the NASDAQ Global Market under the ticker symbol “EPOC.”

Lead Plaintiff alleges that before Epocrates’ initial public offering of stock on February 1, 2011, Defendants were aware that there were substantial and growing delays in the pharmaceutical customers’ approval processes, which in turn delayed the publication of DocAlerts and the time that the Company could record revenue on such DocAlerts. Lead Plaintiff alleges that Defendants determined that these delays had created a significant revenue gap in the first quarter of 2011. In response, Lead Plaintiff alleges, Defendants engaged in a scheme to misrepresent and conceal Epocrates’ problems by secretly canceling and reissuing DocAlerts contracts, which allowed the Company to record DocAlerts revenue sooner. Lead Plaintiff further alleges that in the first quarter of 2011, this scheme succeeded, and Defendants misleadingly touted significant revenue growth for that quarter without disclosing that: (i) such growth was achieved through canceling and reissuing contracts; and (ii) pharmaceutical customers’ approval delays were materially undermining the Company’s ability to record revenue.

Lead Plaintiff further alleges that Defendants’ false and misleading statements materially inflated the price of Epocrates’ stock, resulting in damages to Settlement Class Members when the truth was revealed on August 9, 2011, causing the Company’s stock price to fall significantly. Defendants have vehemently contested, and continue to deny, Lead Plaintiff’s allegations or that they engaged in any wrongdoing whatsoever.

On June 23, 2015, Lead Plaintiff and Defendants participated in an all-day mediation session before Judge Layn Phillips (Ret.) (“Judge Phillips”). Prior to the mediation, the Settling Parties engaged in limited informal document discovery and exchanged initial and reply mediation statements. Although the Settling Parties did not reach an agreement to settle this matter during the June 23, 2015 mediation, they continued to engage in settlement negotiations with the assistance of Judge Phillips.

On September 8, 2015, the Settling Parties reached an agreement-in-principle to settle the Litigation. The Settling Parties then negotiated and, on September 21, 2015, executed a term sheet that outlined and confirmed many of the material terms of the agreement.

The Court has appointed the law firms Glancy Prongay & Murray LLP and Scott + Scott, Attorneys at Law, LLP, as Lead Counsel to represent Lead Plaintiff and all other Settlement Class Members in the Litigation. If you want to be represented by your own lawyer, you may hire one at your own expense. You are not required to retain your own counsel, but if you choose to do so, such counsel must file a notice of appearance on your behalf and must serve copies of their notice of appearance on the lawyers identified later in this Notice.

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.


Submit a Proof of Claim and Release form so that it is postmarked no later than May 13, 2016. If the Settlement is approved and you are a member of the Settlement Class, you may be entitled to receive a payment. But you must submit a Proof of Claim and Release form to share in the proceeds. This is the only way to get a payment. A copy of the Proof of Claim and Release form can be found on the Case Documents tab above. If you remain in the Settlement Class, you will be bound by the Settlement and will give up any and all of the Released Claims you may have against the Persons who are being released from liability as described on pages 8 and 9 of the Notice.
Exclude Yourself from the Settlement Class by submitting a written request for exclusion so that it is postmarked no later than April 21, 2016. If you exclude yourself from the Settlement Class, you will not get a payment from that Settlement but will be able to bring a lawsuit against the Defendants (as well as the other Persons being released under the Settlement).
Object to the Settlement by submitting a written objection so that it is filed with the Court and postmarked to Counsel no later than April 21, 2016. If you do not exclude yourself but you wish to object to the proposed Settlement, the proposed Plan of Allocation, and/or Lead Counsel’s application for a Fee and Expense Award and the Lead Plaintiff Cost and Expense Award, you may write to the Court about your objections. You cannot object unless you are a Settlement Class Member. The contents and manner of submitting any written objection is set forth in the Notice. You must comply with these provisions for your objection to be considered.
Attend a Hearing on May 12, 2016, and submit a Notice of Intention to Appear so that it is filed with the Court and postmarked to Counsel no later than April 21, 2016. Filing a written objection and notice of intention to appear allows you to speak in Court about the fairness of the proposed Settlement. If you have submitted a written objection, you may (but do not have to) attend the hearing and speak to the Court about your objections.
Do Nothing. Receive no payment, remain a Settlement Class Member, give up your rights and be bound by the judgment that will be entered by the Court regarding the Settlement, including, without limitation, the releases that will be set forth in that judgment.