COURT APPROVES $2.3 MILLION SETTLEMENT IN SECURITIES CLASS ACTION LAWSUIT AGAINST VIISAGE TECHNOLOGY, INC (NOW KNOWS AS L-1 IDENTITY SOLUTIONS, INC. – ID:NYSE)
On March 16, 2005, KL filed a securities fraud class action complaint against Viisage Technology, Inc. (“Viisage”) in the U.S. District Court for the District of Massachusetts. By order dated January 13, 2006, the Court appointed KL clients as co-lead plaintiffs, and KL as co-lead counsel, responsible for the prosecution of the action. On February 27, 2006, Lead Plaintiffs filed their Consolidated Amended Complaint with the Court on behalf of purchases of Viisage publicly traded securities during the period from May 12, 2004 through March 2, 2005.
The Complaint alleges that Viisage, a provider of advanced technology identity solutions that enable governments, law enforcement agencies and businesses to enhance security, reduce identity theft and protect personal privacy, and the individual defendants violated the federal securities laws by, among other things, issuing press releases and/or signing documents filed with the Securities and Exchange Commission (the “SEC”), and/or making statements during conference calls with securities analysts, which contained materially false and misleading statements concerning: (1) litigation with which Viisage was involved in connection with a contract it had obtained with the Georgia Department of Motor Vehicle Safety (“DMVS”) to provide secure drivers licenses for the State (“the Georgia DMVS Litigation”); and (2) Viisage’s disclosure controls and internal financial controls. The Complaint further alleged that these materially false and misleading statements were made with knowledge of, or in reckless disregard of, the true facts. Lead Plaintiffs asserted in the Complaint that, in connection with this alleged wrongdoing, Defendants violated Sections 11 and 15 of the Securities Act of 1933 and Sections 10(b) (and Rule 10b-5 promulgated thereunder) and 20(a) of the Securities Exchange Act of 1934, and caused damages to Lead Plaintiffs and the members of the Class. By their Complaint, Lead Plaintiffs sought money damages plus interest, costs and attorneys’ fees from Defendants.
Defendants moved to dismiss the Complaint and following extensive briefing and oral argument, by Order dated February 27, 2007, the Court granted the motion to dismiss Lead Plaintiffs’ allegations concerning the Georgia litigation, but denied the motion to dismiss Lead Plaintiffs’ allegations concerning Viisage’s disclosure controls and internal financial controls.
Following that ruling and after extensive negotiations, the parties agreed, subject to Court approval, to settle the class action for $2.3 million. By Order filed August 17, 2007, the Court has preliminarily approved the settlement, scheduled a Fairness Hearing to consider final approval of the proposed settlement, as well as a fee application by Lead Counsel and the proposed Plan of Allocation on November 16, 2007. At the Fairness Hearing, the Court granted final approval of the proposed Settlement and Plan of Allocation, and also granted Lead Counsel’s fee application. The details of the Settlement are set forth in the Notice of Pendency and Proposed Settlement of Class Action, Application for Attorneys’ Fees and Expenses and Fairness Hearing. In order to share in the settlement proceeds, you must submit a Proof of Claim Form so that it is received by the Claims Administrator no later than December 21, 2007.