Computer Network Technology Securities Litigation

On March 4, 2005, Zimmerman Reed filed a shareholder class action lawsuit on behalf of public stockholders of Computer Network Technology Corporation. This action was filed in the Hennepin County District Court in the District of Minnesota involving allegations of improper and unlawful conduct of the Company's directors in connection with the proposed acquisition of CNT by McData Corporation pursuant to which the company's public stockholders will receive 1.3 shares of McData Class A common stock for each share of CNT stock they own. Plaintiff contends that CNT's directors have breached their fiduciary duties owed to the company's shareholders by, among other things, proceeding with a transaction which is not in the best interests of its public shareholders, erecting defensive measures designed to thwart competing third-party bids, and failing to provide CNT shareholders will all material information concerning the merger.

In July 2005, the Parties entered into a tentative Settlement. On November 15, 2005, Hennepin County District Judge George F. McGunnigle granted final approval of the proposed Settlement.