The original complaint charges InterVoice and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company was created through the acquisition of Brite Voice Systems, Inc. (``Brite'') for $164.4 million in cash and stock in the 2ndQ F00.

The complaint alleges that during the Class Period, Defendants made materially false statements about InterVoice's business, its financial results, the success of its integration with Brite and its prospects. As a result, InterVoice's stock was inflated to as high as $38.75 per share. The Individual Defendants took advantage of this inflation, selling 525,916 shares of their InterVoice stock for $13.4 million in proceeds. Then, on 6/6/00, InterVoice shocked the market, revealing that it would report a loss of $0.03 to $0.05 and revenues of only $67-$68 million for the 1st Q F01 rather than the EPS of $0.22 and revenues of $89 million defendants had led the market to expect. Defendants blamed the shortfall on sales people who had begun leaving the Company in the months prior to this disclosure, some of which were unhappy with the integrated Company. Defendants also claimed they had implemented new guidance from the SEC, Staff Accounting Bulletin No. 101, Revenue Recognition in Financial Statements (``SAB 101'') earlier than planned. These revelation caused InterVoice stock to plummet to as low as $5.75 per share before closing at $6.125, a decline of 85% from its Class Period high on volume of 15.5 million shares.

As summarized by the Company’s FORM 10-Q For The Quarterly Period Ended November 30, 2007, several related class action lawsuits were filed in the United States District Court for the Northern District of Texas on behalf of purchasers of common stock of Intervoice during the period from October 12, 1999 through June 6, 2000 (the “Class Period”). Plaintiffs have filed claims, which were consolidated into one proceeding, under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Securities and Exchange Commission Rule 10b-5 against us as well as certain named current and former officers and directors of Intervoice on behalf of the alleged class members.

In the complaint, Plaintiffs allege that the named current and former officers and directors issued false and misleading statements during the Class Period concerning the financial condition of Intervoice, the results of the merger with Brite and the alleged future business projections of Intervoice. Plaintiffs have asserted that these alleged statements resulted in artificially inflated stock prices.

On September 5, 2001, the Court issued an Order appointing Lead Plaintiffs and Counsel and consolidating cases. Lead Plaintiffs filed a consolidated Complaint on November 16. On January 14, 2002, Defendants filed a Motion to Dismiss the consolidated Complaint.

On August 8, 2002, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint. Lead Plaintiffs filed an amended Complaint on September 23. On November 1, Defendants filed a Motion to Dismiss the amended Complaint.

On September 15, 2003, the Court issued an Order granting Defendants' Motion to Dismiss and dismissed the case with prejudice. The Plaintiffs appealed the dismissal to the United States Court of Appeals on October 9.

On May 24, 2005, the Court of Appeals affirmed the dismissal in part and reversed in part. The Fifth Circuit remanded a limited number of issues for further proceedings in the District Court.

Lead Plaintiffs filed a Motion for Class Certification on February 3, 2006. On September 26, the District Court granted the Plaintiffs’ motion to certify a class of people who purchased Intervoice stock during the Class Period. On November 14, 2006, the Fifth Circuit granted a petition to appeal the District Court’s decision to grant Plaintiffs’ motion to certify a class. On February 1, 2008, the Fifth Circuit vacated the District Court’s class-certification order and remanded the case to the District Court for further consideration in light of the Fifth Circuit’s decision Oscar Private Equity Investments v. Allegiance Telecom, Inc.

Plaintiffs filed a second amended complaint on August 3, 2007. Defendants filed a Motion to Dismiss the second amended Complaint on August 17. On March 12, 2008, the Court issued an Order denying Defendants' Motion to Dismiss.

On October 26, 2009, the plaintiffs’ February 3, 2006 Motion for Class Certification was denied by the the Court. The plaintiffs were granted permission to appeal and filed a Notice of Interlocutory Appeal to the Court of Appeals on January 29, 2010. The appeal was later dismissed without prejudice.

On January 13, 2011, the parties entered into a Stipulation of Settlement. The settlement was preliminarily approved on June 30. On September 27, 2011, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.