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Case Status:    SETTLED
On or around 08/02/2007 (Ongoing date of last review)

Filing Date: March 08, 2005

According to a press release dated July 31, 2007, L-1 Identity Solutions, Inc. (NYSE:ID) today announced that the Company and counsel for the plaintiff class have recently filed a joint motion for preliminary approval of a settlement of Viisage Technology Securities Litigation, Civil Action No. 05-10438-MLW, in the United States District Court for the District of Massachusetts (the "litigation"). The litigation is the consolidation of a number of class action complaints filed against Viisage Technology, Inc. (now named L-1 Identity Solutions Operating Company) and certain of its former officers and directors in March and April 2005. The putative class consists of the purchasers of Viisage stock during the period May 12, 2004 through March 2, 2005. On February 27, 2007, the Court issued an order dismissing the majority of the claims asserted in the litigation, but permitting certain claims to proceed. This settlement, which is subject to among other things preliminary and final Court approval, would resolve all the remaining claims in the litigation. Without admitting any liability or wrongdoing of any kind, the Company has agreed to authorize payment to the plaintiff class of $2.3 million. This settlement payment would be funded by the Company's insurer. Because the litigation is a class action, the settlement is subject to the preliminary approval of the Court as well as the Court's final approval after notice of the terms of the settlement has been provided to all class members.

According to the Company’s FORM 10-Q For the Quarterly Period Ended September 30, 2006, in March and April 2005, eight putative class action lawsuits were filed in the United States District Court for the District of Massachusetts. These lawsuits have been consolidated into one action under one case name: In re: Viisage Technology Securities Litigation, Civil Action No. 05-10438-MLW. The so-called Turnberry Group has been designated as lead plaintiff and its counsel has been designated as lead counsel. The amended consolidated complaint which was filed in February 2006 alleges violations of the federal securities laws by Viisage (now named L-1 Identity Solutions, Inc.) and certain officers and directors arising out of purported misstatements and omissions in Viisage’s SEC filings related to certain litigation involving the Georgia drivers’ license contract and related to the Viisage’s reported material weaknesses in internal controls over financial reporting, which allegedly artificially inflated the price of the Company’s stock during the period May 12, 2004 through March 2, 2005. In April 2006, the Company filed a motion to dismiss this case.

The original Complaint alleges Viisage was forced to borrow funds from its controlling shareholder, and was in dire need of a credit line adequate to finance its ongoing business needs. In order to secure such credit, the defendants engaged in a scheme to artificially engineer a profit in the third quarter of 2004 (ending Sept. 26, 2004), and made earnings projections known by them to be baseless and unsupportable. The third quarter profit, which was reported on October 25, 2004, was only made possible through various accounting manipulations, whereby certain assets were prematurely recognized, while certain expenses were artificially deferred from the third quarter of 2004 into the fourth quarter of 2004.

The complaint further alleges that after obtaining the desired credit line, the defendants waited until February 27, 2005 to shock investors with the news of numerous fourth quarter charges and a significant asset impairment, all of which returned Viisage to substantial unprofitability. This news caused Viisage stock to drop over 20% on heavy trading. Then, on or around March 2, 2005, defendants again shocked the market by announcing a "material weakness" in its internal financial controls, and that "management will be unable to conclude that the Company's internal controls over financial reporting are effective as of December 31, 2004. Therefore, BDO Seidman LLP, the Company's external accounting firm, will issue an adverse opinion with respect to the effectiveness of the Company's internal controls over financial reporting." As a result of this news, the stock dropped another 20%, closing on March 3, 2005 at $4.50 per share, down from almost $7 per share at the commencement of the Class Period.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Networks
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: VISG
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 #: 05-CV-10438
JUDGE: Hon. Mark L. Wolf
DATE FILED: 03/08/2005
CLASS PERIOD START: 10/25/2004
CLASS PERIOD END: 03/02/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Baron & Budd, P.C. (Dallas)
    3102 Oak Lawn Avenue, Suite 1100, Baron & Budd, P.C. (Dallas), TX 75219
    800-946-9646 · info@baronbudd.com
  2. Berman DeValerio Pease Tabacco Burt & Pucillo (MA)
    One Liberty Square, Berman DeValerio Pease Tabacco Burt & Pucillo (MA), MA 2109
    617.542.8300 617.230.0903 · info@bermanesq.com
  3. Dyer & Shuman, LLP
    801 East 17th Avenue, Dyer & Shuman, LLP, CO 80218-1417
    303.861.3003 800.711.6483 · info@dyershuman.com
  4. Kaplan Fox & Kilsheimer, LLP (former New York, NY)
    805 Third Avenue, 22nd Floor, Kaplan Fox & Kilsheimer, LLP (former New York, NY), NY 10022
    212.687.1980 212.687.7714 · info@kaplanfox.com
  5. Klafter & Olsen LLP (Washington)
    1250 Connecticut Ave., N.W. Suite 200, Klafter & Olsen LLP (Washington), DC 20036
    202.261.3553 202.261.3533 · info@klafterolsen.com
  6. Law Offices of Brian M. Felgoise, P.C.
    Esquire at 261 Old York Road, Suite 423, Law Offices of Brian M. Felgoise, P.C., PA 19046
    215.886.1900 · securitiesfraud@comcast.net
  7. 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
  8. 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
  9. Paskowitz & Associates
    60 East 42nd Street, 46th Floor, Paskowitz & Associates, NY 10165
    212.685.0969 212.685.2306 · classattorney@aol.com
  10. Roy Jacobs & Associates (New York)
    350 Fifth Avenue Suite 3000 , Roy Jacobs & Associates (New York), NY 10118
    · classattorney@pipeline.com
  11. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  12. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  13. Seeger Weiss LLP (New York Old Address)
    40 Wall Street. The Trump Building, Seeger Weiss LLP (New York Old Address), NY 10005
    212.584.0700 · info@seegerweiss.com
  14. Shapiro Haber & Urmy LLP (Boston)
    75 State Street, Shapiro Haber & Urmy LLP (Boston), MA 02109
    617.439.3939 617.439.0134 · info@shulaw.com
  15. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
No Document Title Filing Date
COURT: D. Massachusetts
DOCKET #: 05-CV-10438
JUDGE: Hon. Mark L. Wolf
DATE FILED: 02/27/2006
CLASS PERIOD START: 05/12/2004
CLASS PERIOD END: 03/02/2005
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Entwistle & Cappucci LLP
    299 Park Avenue, 14th Floor, Entwistle & Cappucci LLP, NY 10171
    212.894.7200 212.894.7272 · info@entwistle-law.com
  2. Klafter & Olsen LLP (Washington)
    1250 Connecticut Ave., N.W. Suite 200, Klafter & Olsen LLP (Washington), DC 20036
    202.261.3553 202.261.3533 · info@klafterolsen.com
  3. Paskowitz & Associates
    60 East 42nd Street, 46th Floor, Paskowitz & Associates, NY 10165
    212.685.0969 212.685.2306 · classattorney@aol.com
  4. Roy Jacobs & Associates (New York)
    350 Fifth Avenue Suite 3000 , Roy Jacobs & Associates (New York), NY 10118
    · classattorney@pipeline.com
No Document Title Filing Date
No Document Title Filing Date