Zoran Corporation, a publicly traded company whose common stock is traded on Nasdaq under the ticker symbol "ZRAN," develops and markets high-performance digital audio and video imaging applications for purchase by original equipment manufacturers of digital televisions, DVD products, digital cameras, digital printing, multimedia phones and IP cores.

The original Complaint alleges Zoran and certain current and former officers and members of its Board of Directors and certain Company officers violated the Securities Exchange Act of 1934. The Complaint alleges that between July 1998 and September 2001, certain senior executives received unlawfully backdated Zoran stock opinions at the direct expense of Zoran. The issuance and receipt of these unlawfully backdated Zoran stock options was a done in violation of the Exchange Act.

On December 11, 2006, the Court entered the Order granting the motion to appoint the Middlesex Retirement System as lead Plaintiff. On January 4, 2007, the Court entered the Order granting the motion to appoint Labaton, Sucharow and Rudoff LLP as lead Counsel. On February 1, 2007, a Consolidated Amended Class Action Complaint was filed and then, on February 20, 2007, a Consolidated Second Amended Class Action Complaint was filed. On March 9, 2007, the Defendants filed a motion to dismiss the Consolidated Second Amended Class Action Complaint.

On March 20, 2007, lead Plaintiff filed a notice voluntarily dismissing the action with prejudice as to the lead Plaintiff. The shareholder derivative action is currently in progress.