StockerYale, Inc. designs and manufactures structured light lasers, LEDs and other illumination products.

The original Complaint charges that StockerYale and certain of its officers and directors violated Securities 10(b) and 20(a) of the Securities and Exchange Act by issuing false and misleading press releases on April 19 and April 21, 2004 in which the Company falsely announced in had entered into a contract with BAE Systems to develop a laser for a missile countermeasure system to protect commercial planes. In addition, the press releases misrepresented that StockerYale was supplying the lasers as part of a Department of Homeland Security project. In fact, StockerYale was not involved in any Department of Homeland Security project and was not developing a laser missile countermeasure system for commuter planes.

The Complaint further alleges that within minutes of the first Press Release on April 19, StockerYale's share priced surged as a result of the positive announcement. StockerYale's CEO sold 250,000 shares for over $1.6 million the next day. A StockerYale director sold 56,900 shares of stock for over $350,000.

On or around May 23, 2005 the SEC announced it had entered into a consent judgment settling charges against StockerYale and its CEO.

As summarized by the Company’s FORM 10-QSB For The Quarterly Period Ended September 30, 2006, beginning in May 2005, three putative securities class action Complaints were filed in the United States District Court for the District of New Hampshire against the Company and certain individual Defendants. The three Complaints were consolidated into one action and assigned to a single federal judge. The court also appointed a group of lead Plaintiffs and Plaintiffs’ Counsel who filed a consolidated amended Complaint to supersede the previously filed Complaints. The Company’s former Chief Financial Officer is not named as a Defendant in the amended Complaint; therefore, he is not a party to the currently pending proceeding. The consolidated amended Complaint asserts claims under Sections 10(b), 20(a), and 20A of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. On January 31, 2006, the Company and the individual Defendants moved to dismiss all claims asserted in the consolidated amended Complaint. The United States District Court for the District of New Hampshire ruled on Sept. 29, 2006 for the Plaintiffs.

On June 26, 2007, the parties entered into a Stipulation and Agreement of Settlement. The Court granted preliminary approval of the Settlement on August 21. On December 18, 2007, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

On July 1, 2008, the Court issued an Order approving distribution of the Settlement.