Lead Plaintiff Henry Low's Second Amended Class Action Consolidated Complaint for Violation of Federal Securities Laws (the "Complaint") filed on May 26, 2016, alleges that Defendants Energy Recovery and Thomas S. Rooney, Jr. violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, promulgated thereunder by the United States Securities and Exchange Commission.

Defendants have agreed to settle for $3,850,000, which will be distributed after the payment of claims administration and notice costs and Plaintiff's Counsel's attorneys' fees and expenses as awarded by the Court, to all Settlement Class Members who send in a valid and timely Proof of Claim and Release Form. The Court directed that, for the purposes of the proposed Settlement, everyone who fits this description is a Settlement Class Member: all Persons (as defined in the Stipulation) who purchased Energy Recovery common stock during the period March 7, 2013 through March 5, 2015, inclusive.