The Complaint alleges that during the Class Period, Defendants caused, allowed and permitted false and misleading representations to be made and omitted to state material facts regarding the operations and acquisitions of Surefind Inc., and Cybernetics, Systems International Inc. It is further alleged that Defendants' misrepresentations and omissions violated federal securities laws, Connecticut statutory and common law, caused a steep rise in the price of EIS common stock and allowed certain officers and directors to reap substantial profits by selling company stock at artificially inflated prices in all in violation of their fiduciary duties. Following the announcement of EIS' financial results for the quarter ended December 31, 1996, the price of EIS' common stock dropped significantly causing substantial losses to the plaintiff and the Class.

On November 29, 1999, the Plaintiffs filed a Second Consolidated and Amended Class Action Complaint, and on January 19, 2000, the Defendants responded by filing a motion to dismiss the Second Consolidated and Amended Class Action Complaint. On July 11, 2000, the Court entered an Order denying the motion to dismiss. On August 30, 20002, the Defendants filed a motion for summary judgment, which was later denied by the judge in a ruling entered on December 19, 2003. On October 25, 2005, defendant EIS International filed a motion for summary judgment, and on November 30, 2005, certain individual defendants also filed a motion for summary judgment.

The parties reached the Settlement in two stages. On December 23, 2005, a settlement stipulation was executed, memorializing a proposed settlement between Plaintiffs and EIS; the Individual Defendants were not parties to that settlement. On September 15, 2006, a second settlement stipulation was filed, memorializing a proposed settlement between Plaintiffs and the Individual Defendants. On December 20, 2006, the Court granted final approval of both Settlements, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.