According to the docket posted, on January 11, 2005, the Court entered the Order and Final Judgment, signed by U.S. District Judge Charles A. Pannell. Judge Pannell approved the terms and conditions of the Stipulation and Settlement Agreement, and dismissed the complaint with prejudice and without costs, except as provided in the Stipulation.

In a press release dated dated August 6, 2004, on July 1, 2004, Clarus Corporation entered into a memorandum of understanding to settle a securities class action brought against the Company that was originally filed in 2000. Pursuant to the memorandum, the Company agreed in principle to settle the lawsuit in exchange for a payment of $4.5 million, which is expected to be covered by insurance. The final settlement of the consolidated class action is subject to certain action including the execution of definitive documentation and approval by the Court.

By order of the Court dated November 21, 2000, all related cases were consolidated into one action entitled In re Clarus Corporation Securities Litigation. On December 29, 2000, competing motions for appointment of Lead Plaintiff and Lead Counsel were filed. On March 22, 2001, the Court appointed Lead Plaintiffs and Co-Lead Counsel, and on May 14, 2001, Lead Plaintiffs filed an Amended Consolidated Class Action Complaint (the "Amended Complaint"). On June 29, 2001, the Defendants moved to dismiss the case, and Lead Plaintiffs filed a brief in opposition to Defendants' Motion to Dismiss. On August 27, 2001 the Defendants filed an additional reply to their motion and on April 16, 2002, the Court entered an Order denying Defendants' Motion to Dismiss the Amended Complaint. On May 16, 2002, Defendants filed their answer to the Amended Complaint. On June 17, 2002, Lead Plaintiffs filed a Motion for Class Certification, which the Judge denied on August 21, 2002. Plaintiffs filed a Second Amended Consolidated Class Action Complaint (the "2nd Amended Complaint") on December 3, 2003, which Defendants moved to dismiss on January 9, 2004. Lead Plaintiffs' opposed Defendants' motion on February 23, 2004. On January 8, 2004, Lead Plaintiffs filed a motion for class certification. Prior to a ruling on Defendants' Motion to Dismiss and Lead Plaintiffs' Motion for Class Certification, the parties agreed to settle the lawsuit and entered into a Stipulation and Agreement of Settlement (the "Stipulation").

The original complaint alleges that Clarus improperly included in its financial results a receivable that was past due and for which collection was not probable. In addition, the lawsuit says that Clarus failed to disclose that 20% of its receivables were owed by a single customer and did not advise investors of the risks the company faced if that customer did not pay its obligation. On October 25, 2000, Clarus stunned the market by disclosing a much greater loss for the third quarter of 2000 than it had previously led analysts to believe. The deeper-than-expected loss was due, in significant part, to the write-off of a $2 million receivable from one of its customers. In response to this announcement, the company’s stock price dropped 45%.