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Case Status:    SETTLED
On or around 07/13/2007 (Date of order of final judgment)

Filing Date: February 22, 2005

According to a press release dated July 16, 2007, Copernic Inc., (the "Company"), formerly Mamma.com Inc., previously announced on March 8, 2007, that an order by the U.S. District Court for the Southern District of New York in the consolidated securities class action was filed preliminarily approving the proposed settlement of the class action. The court has approved the settlement following a hearing on July 9, 2007, at which time the Court heard from all parties before concluding that the settlement is fair and all procedural requisites were met. As a result, all claims asserted in the class actions against the Company and the individual officer defendants have been resolved, with the exception of three shareholders who have indicated they will exclude themselves from the settlement so as to preserve rights to maintain separate actions should they elect to do so. The amount paid into escrow, along with any interest earned, will be distributed as provided under the settlement to pay class members, plaintiffs' attorney fee, and the costs of claims administration.

In a press release dated March 8, 2007, on March 1, 2007, an order by the court in the consolidated securities class action was filed preliminarily approving the proposed settlement of the class action. Among other things, the order directs that on or before Friday, March 9, we "shall pay and/or cause to be paid $3,150,000 (the "Cash Settlement Amount") into escrow for the benefit of Plaintiffs and the Class." Under the settlement agreement, we are responsible for paying $650,000 and our insurance carrier for paying the balance of the Cash Settlement Amount.

In a press release dated November 9, 2006, Mamma.com Inc.(NASDAQ: MAMA), (the "Company"), announced that it has entered into an agreement to settle the class action lawsuit currently pending in the U.S. District Court for the Southern District of New York. The settlement, which must be approved by the Court, would resolve all claims asserted against the Company and the individual officer defendants. Under the terms of the settlement agreement, plaintiffs would receive US$3.15 million, $2.5 million of which would be paid by the Company's insurance carrier and $650,000 from the Company. The settlement contains no admission of wrongdoing by the Company or the officers of the Company who are individual defendants. The Company has always maintained and continues to believe that neither the Company nor any of the individual officers named committed any wrongdoing. However, given the potential cost and uncertainty of continued litigation, the Company believes that the settlement is in the Company's best interests.

As previously reported by the Company’s FORM 20-F For The Fiscal Year Ended December 31, 2005, on February 22, 2005, the first of several purported securities class action lawsuits was filed in the United States District Court, Southern District of New York against the Company, and certain of the Company’s current officers and directors. The plaintiffs allege, among other things, violations of the Securities Exchange Act of 1934 for purportedly failing to disclose and misrepresenting certain allegedly material facts relative to the market for and trading in the Company’s stock, and seek unspecified damages. The purported class actions appear to be based on unsubstantiated rumours and newspaper reports. All of these lawsuits have been consolidated. On March 28, 2006, the court in the consolidated case denied a motion the Company filed for dismissal of the consolidated complaint.

The original class action lawsuit was filed on behalf of all purchasers of the common stock of Mamma.com Inc. The complaint charges Mamma.com and certain of it officers with violations of the Securities Exchange Act of 1934. Mamma.com provides information retrieval on the Internet through its metasearch engine, http://www.mamma.com. The Company derives its revenues from two sources, including search services and banner advertising services, with customers located in the United States and Canada.

Specifically, the complaint alleges the defendants failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that Irving Kott, a legendary Canadian stock promoter with a long history of stock manipulation, had a significant undisclosed interest in the Company; (2) that Kott and his associates were manipulating the Company's stock price by engaging in a classic "pump and dump" scheme to defraud; and (3) that the Company itself was manipulating its financial results in order to maintain its artificially inflated share price so that the "pump and dump" scheme would endure. Additionally, the complaint alleges that during the Class Period, and with its stock trading at artificially inflated levels, the Company was able to acquire Digitalarrow LLC and High Performance Broadcasting Inc. (collectively "Digital Arrow") for $1,050,000 and the issuance of 90,000 common shares of Mamma.com, and was able to enter into a letter of intent ("LOI") whereby Mamma.com would acquire all of the shares of Copernic Technologies for a combination of cash and shares of Mamma.com. Moreover, the Company was able to raise $16.6 million through a private placement while its shares traded at artificially inflated levels.

The complaint further alleges on or around February 16, 2005, shares of Mamma.com were halted. Shortly thereafter, Mamma.com announced that it had been unable to reach an agreement on the terms of the audit engagement with PricewaterhouseCoopers LLP ("PWC") for the year ended December 31, 2004. Accordingly, PWC would not act as the Company's independent auditor for the audit of the Company's financial statements for the year ended December 31, 2004. News of this sent the stock into a downward spiral. As a result, shares of Mamma.com fell $2.02 per share, or 32.27% to close at $4.25 per share.

COMPANY INFORMATION:

Sector: Technology
Industry: Software & Programming
Headquarters: Canada

SECURITIES INFORMATION:

Ticker Symbol: MAMA
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: S.D. New York
DOCKET #: 05-CV-02313
JUDGE: Hon. Harold Baer
DATE FILED: 02/22/2005
CLASS PERIOD START: 05/12/2004
CLASS PERIOD END: 02/16/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  2. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    200 Broadhollow, Suite 406, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@lerachlaw.com
  3. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  4. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  5. Spector, Roseman & Kodroff (Philadelphia)
    1818 Market Street; Suite 2500, Spector, Roseman & Kodroff (Philadelphia), PA 19103
    215.496.0300 215.496.6610 · classaction@srk-law.com
  6. 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
  7. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
  8. Zwerling Schachter & Zwerling LLP
    845 Third Avenue, Zwerling Schachter & Zwerling LLP, NY 10022
    212-223-3900 212-371-5969 · inquiry@zsz.com
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 05-CV-02313
JUDGE: Hon. Harold Baer
DATE FILED: 07/29/2005
CLASS PERIOD START: 03/02/2004
CLASS PERIOD END: 02/16/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC), DC 20005
    202.408.4600 202.408.4699 · lawinfo@cmht.com
  2. Milberg Weiss & Bershad LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss & Bershad LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
  3. Milberg Weiss Bershad & Schulman LLP (New York)
    One Pennsylvania Plaza, 49th Floor, Milberg Weiss Bershad & Schulman LLP (New York), NY 10119
    212.594.5300 212.868.1229 · info@milbergweiss.com
No Document Title Filing Date
No Document Title Filing Date