According to an article in the Washington Business Journal dated February 23, 2001, the has dismissed a class action lawsuit against V-One. In the suit filed against V-One, shareholders alleged the company's officers manipulated stock values by strategically issuing press releases that linked its products with the Linux operating system, which at the time was enjoying a surge in popularity. U.S. District Judge Marvin J. Garbis ruled that the plaintiffs had failed to prove the company had violated securities laws and dismissed the suit "with prejudice." Costs were awarded to V-One.

The original Complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5). The action arises from damages incurred by the Class as a result of a scheme and common course of conduct by defendants which operated as a fraud and deceit on the Class during the Class Period. Defendants' scheme included rendering false and misleading statements and/or omissions concerning the present and future financial condition and business prospects of the Company, as well as the financial benefits that would enure to V-One and its shareholders.