If you submitted a valid Proof of Claim in the June 18, 2013 Settlement, that Proof of Claim form will serve as your proof of claim form in this settlement and you are automatically eligible for a recovery in this settlement without needing to submit another Proof of Claim form.

China North East (CNEP)

Please do not mail any objections to the Court.  Objections must be sent to Lead Counsel by first-class mail or hand delivery to Matthew M. Guiney, Esq., Wolf Haldenstein Adler Freeman & Herz LLP, 270 Madison Avenue, New York, NY 10016.

IF YOU PURCHASED OR OTHERWISE ACQUIRED SHARES OF HORTONWORKS, INC. (“HORTONWORKS”) COMMON STOCK BETWEEN AUGUST 5, 2015, AND JANUARY 15, 2016, BOTH DATES INCLUSIVE, YOU COULD RECEIVE A PAYMENT FROM A CLASS ACTION SETTLEMENT.

A federal court authorized this Notice.  This is not a solicitation from a lawyer.

Your legal rights are affected whether you act or do not act.  Read this Notice carefully.

SUMMARY OF KEY PROVISIONS AND REASONS FOR SETTLEMENT

• The Settlement will provide one million one hundred thousand dollars ($1,100,000.00) (the “Settlement Fund”). If approved by the Court, the Settlement will settle certain claims, as against the Settling Defendants, from investors who bought or otherwise acquired Hortonworks shares between August 5, 2015, and January 15, 2016, inclusive (the “Settlement Class Period”).
• The Settlement resolves a securities fraud class action lawsuit (the “Action”) over allegations that Hortonworks and certain of its officers and directors misled its shareholders during the Settlement Class Period about Hortonworks’ operations and business prospects.
• The Settling Defendants are Hortonworks, Robert G. Bearden (“Bearden”) (its Chairman and Chief Executive Officer), and Scott J. Davidson (“Davidson”) (its Chief Financial Officer).
• The Court did not ultimately resolve the Action in favor of the Plaintiffs or the Settling Defendants. Instead, both sides agreed to a Settlement after the Court dismissed the Plaintiffs’ First Consolidated Amended Complaint (“Amended Complaint’) and before Plaintiffs filed a further amended complaint.  This permits these settling parties to avoid the cost, delay, and uncertainty of continued litigation and a trial, and permits eligible Settlement Class Members who submit valid claims to receive some compensation rather than risk ultimately receiving nothing. Both the Plaintiffs and the Settling Defendants have taken into account the uncertainty and risks inherent in any litigation, especially in complex cases such as the Action.  The Plaintiffs and their attorneys believe the Settlement is best for all Settlement Class Members.  The Settling Defendants, while denying the allegations and maintaining they did nothing wrong, have concluded that further defense of the Action would be protracted and expensive, and that it is desirable that the Action be fully and finally settled as per the parties’ Stipulation of Settlement (“Stipulation”).  The two sides disagree on whether, even if liability could be proven, total damages would be more than $0 per damaged share, or if more, how much more.
• Lead Counsel for the Class will ask the Court for no more than 28% of the Settlement Fund in attorneys’ fees and reimbursement of up to fifty thousand dollars ($50,000.00) for litigation costs. Lead Counsel will also ask the Court to pay Lead Plaintiff Randall A. Arvidson and initial Plaintiff William Monachelli (altogether “Plaintiffs”) up to seven hundred fifty dollars ($750.00) each for their contributions to this lawsuit.
• The Court in charge of this case still has to decide whether to approve the Settlement. The Court has set a Settlement Hearing for September 22, 2017 at 10:00 a.m. to consider whether to approve the Settlement. Payments will be made if the Court approves the Settlement, orders distribution of such monies, and all appeals are resolved. Please be patient.
• If the proposed Settlement is approved after the Settlement Hearing, the Court will enter a Judgment and Order of Final Approval (the “Judgment”). The Judgment will dismiss with prejudice, release, and forever discharge both the Settlement Class Claims against the Settling Defendants and the Released Persons, and the Defendant Claims against the Plaintiffs, Lead Counsel, and any Settlement Class Members. The terms of the releases, including the meaning of defined terms like “Settlement Class Claims” and “Unknown Claims” are set forth in the Proof of Claim and Release form that is enclosed.

• You may submit a claim or object, or do both, or do nothing.
• The only way to be eligible to receive a payment is to submit a claim.
• You may also exclude yourself. However, if you timely exclude yourself, that is the only thing you can do: you cannot then also object in writing, appear at the Settlement Hearing to state any objections, or submit a claim.
• If you object rather than request exclusion, you will remain a Settlement Class Member, and if the Court approves the Settlement, you will be bound by the terms of the Settlement in the same way as Settlement Class Members who do not object.
• Unless you timely request exclusion from the Settlement Class, or unless the Court rejects the proposed Settlement, you are bound by the Stipulation, whether or not you submit a claim or object.
• These rights and options are explained in this Notice. Please take careful note of the deadlines to exercise them, set forth above.

*Note regarding supporting documentation: Supporting documentation would be broker confirmation slips, monthly statements, 1099’s, dividend reinvestment statements, etc . . . for (1) proof of any transactions of Hortonworks, Inc. common stock between August 5, 2015, and January 19, 2016, inclusive; (2) proof of your balance of Hortonworks, Inc. common stock on August 5, 2015; and (3) proof of your balance of Hortonworks, Inc. common stock on January 15, 2016, and on January 19, 2016.