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Case Status:    SETTLED
On or around 01/10/2007 (Date of order of final judgment)

Filing Date: January 23, 2004

By the Order and Final Judgment issued by U.S. District Judge Michael A Ponsor on January 10, 2007, the settlement is approved as fair, reasonable and adequate, and the complaint is dismissed with prejudice. The plaintiffs’ counsel is awarded 25% of the settlement fund and $55,357.65 in reimbursement of expenses.

According to a press release dated July 11, 2006, Wave Systems Corp. (WAVX) announced that it has reached a settlement in principle of all claims asserted by plaintiffs in a pending class-action securities lawsuit. The company said in a filing with the SEC that its insurer has agreed to pay the plaintiffs a total of $1.75 million in exchange for the dismissal with prejudice and release of the claims against all defendants. The lawsuit, filed in the U.S. District Court for the District of Massachusetts, asserted claims arising under the Securities Exchange Act of 1934 concerning certain disclosures in 2003. The lawsuit also named Wave Systems, its Chief Executive and its Chief Financial Officer as defendants. In settling the suit, the company and its management have denied all wrongdoing alleged by the plaintiffs, Tuesday's SEC filing said.

As summarized by the Company’s FORM 10-Q for the quarterly period ended March 31, 2006, a consolidated amended class action complaint is pending in the United States District Court for the District of Massachusetts, naming Wave, its Chief Executive Officer and its Chief Financial Officer as defendants. Brumbaugh et al. v. Wave Systems Corp. et al., Civ. No. 04-30022 (D. Mass.) (MAP). The purported class action has been filed by alleged purchasers of Wave’s Class A Common Stock during the purported class period July 31, 2003 through February 2, 2004. The complaint claims that Wave and the named individuals violated Section 10(b) of the Securities Exchange Act of 1934 (the “1934 Act”), Rule 10(b)-5 promulgated thereunder and Section 20(a) of the 1934 Act by publicly disseminating materially false and misleading statements, relating to Wave’s agreements with Intel and IBM. The complaint does not specify the amount of alleged damages plaintiffs seek to recover. Wave intends to defend the action vigorously. Recently, the Court granted in part and denied in part defendants’ motion to dismiss. The Court dismissed two but let stand seven alleged misrepresentations or omissions. This is not a finding of fault or liability, it is a decision not entirely to dismiss plaintiffs’ pleading.

On April 20, 2004, by Consent Decree, the case filed in the U.S. District Court for the District of New Jersey was transferred to the District Court of Massachusetts. On September 7, 2004, the Court entered the Order consolidating several cases and granted the motion to appoint lead plaintiff and lead and liaison counsel.

The original complaint alleges that Wave and individual defendants violated the federal securities laws (sections 10(b) and 20(a) of the Securities Exchange Act of 1934) by issuing materially false and misleading public statements regarding certain software license agreements with International Business Machines, Corp. ("IBM").
Specifically, during the class period, Wave announced that it had entered into
an agreement with IBM to embed Wave's software inside certain IBM notebook and
desktop computers. This press release, among others during the class period,
was materially false and misleading.

Several purported class action complaint were also filed in the U.S. District Court for the District of Massachusetts.

COMPANY INFORMATION:

Sector: Technology
Industry: Semiconductors
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: WAVX
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Massachusetts
DOCKET #: 04-CV-00266
JUDGE: Hon. John C. Lifland
DATE FILED: 01/23/2004
CLASS PERIOD START: 08/04/2003
CLASS PERIOD END: 12/18/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bernard M. Gross
    1500 Walnut Street, Suite 600, Bernard M. Gross, PA 19102
    215.561.3600 215.561.3000 · bmgross@BernardMGross.com
  2. Bernstein Liebhard & Lifshitz, LLP (New York)
    10 E. 40th Street, 22nd Floor, Bernstein Liebhard & Lifshitz, LLP (New York), NY 10016
    800.217.1522 · info@bernlieb.com
  3. Cauley Geller Bowman Coates & Rudman, LLP (New York)
    200 Broadhollow, Suite 406, Cauley Geller Bowman Coates & Rudman, LLP (New York), NY 11747
    631.367.7100 631.367.1173 ·
  4. Federman & Sherwood (Oklahoma City)
    120 North Robinson, Suite 2720, Federman & Sherwood (Oklahoma City), OK 73102
    405-235-1560 · wfederman@aol.com
  5. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
  6. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
  7. Zimmerman, Levi & Korsinsky, LLP
    39 Broadway, Suite 1440, Zimmerman, Levi & Korsinsky, LLP, NY 10006
    212.363.7500 212.363.7171 ·
No Document Title Filing Date
COURT: D. Massachusetts
DOCKET #: 04-CV-30022
JUDGE: Hon. John C. Lifland
DATE FILED: 10/22/2004
CLASS PERIOD START: 07/31/2003
CLASS PERIOD END: 12/18/2003
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Gilman & Pastor LLP (Saugus)
    Stonehill Corporate Center 999 Broadway Suite 500, Gilman & Pastor LLP (Saugus), MA 01906
    781.231.7850 781.231.7840 ·
  2. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
No Document Title Filing Date
No Document Title Filing Date