According to Tibco Software (which acquired Talarian in 2002) Inc.’s FORM 10-Q for the quarterly period ended June 4, 2006, a proposal to settle the claims against all of the issuers and individual defendants in the coordinated litigation was accepted by the Company and given preliminary approval by the U.S. District Court for the Southern District of New York. The completion of the settlement is subject to a number of conditions, including final approval by the U.S. District Court for the Southern District of New York. Under the settlement, the plaintiffs will dismiss and release all claims against participating defendants in exchange for a contingent payment guaranty by the insurance companies collectively responsible for insuring the issuers in the action, and the assignment or surrender to the plaintiffs of certain claims the issuer defendants may have against the underwriters. Under the guaranty, the insurers will be required to pay an amount equal to $1.0 billion less any amounts ultimately collected by the plaintiffs from the underwriter defendants in all the cases. Unlike most of the defendant issuers’ insurance policies, including the Company’s, Talarian’s policy contains a specific self-insured retention in the amount of $0.5 million for IPO “laddering” claims, including those alleged in this matter. Thus, under the proposed settlement, if any payment is required under the insurers’ guaranty, the Company’s subsidiary, Talarian, would be responsible for paying its pro rata share of the shortfall, up to $0.5 million of the self-insured retention remaining under its policy. The self insured retention of $0.5 million was accrued at the time of the acquisition.

As summarized by the same SEC filing, a lawsuit is pending against Talarian Corporation (“Talarian”), which Tibco acquired in 2002. That action is captioned “In re Talarian Corp. Initial Public Offering Securities Litigation.” The complaint against Talarian, certain of its underwriters, and certain of its former directors and officers claims that the purported improper underwriting activities were not disclosed in the registration statement for Talarian’s IPO and seeks unspecified damages on behalf of a purported class of persons who purchased Talarian securities during the time period from July 20, 2000, to December 6, 2000. This is one of a number of cases challenging underwriting practices in the initial public offerings (each, an “IPO”) of more than 300 companies, which have been coordinated for pretrial proceedings as “In re Initial Public Offering Securities Litigation.”

The complaint alleges that on or about July 20, 2000, Talarian Corp. commenced an initial public offering of 4,200,000 of its shares of common stock at an offering price of $16.00 per share (the "Talarian Corp. IPO"). In connection therewith, Talarian filed a registration statement, which incorporated a prospectus (the "Prospectus"), with
the SEC. The complaint alleges that the Prospectus was materially false and
misleading because it failed to disclose, among other things, that: (i) Lehman, Robertson Stephens and Merrill Lynch had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Lehman, Robertson Stephens and Merrill Lynch allocated to those investors material portions of the restricted number of Talarian shares issued in connection with the Talarian Corp. IPO; and (ii) Lehman, Robertson Stephens and Merrill Lynch had entered into agreements with customers whereby Lehman, Robertson Stephens and Merrill Lynch agreed to allocate Talarian shares to those customers in the Talarian Corp. IPO in exchange for which the customers agreed to purchase additional Talarian shares in the aftermarket at pre-determined prices.