TVIA, Inc. primarily offers semiconductor display processors for the video processing market.

The original Complaint charges that TVIA and certain of its officers and directors violated Sections 10(b), 20A, and 20(a) of the Securities Exchange Act of 1934 by issuing materially false and misleading revenue guidance for the Company's second quarter ended September 30, 2006 for fiscal 2007 (Q2 2007), and in engaging in insider trading. On August 7, 2006, after market close and a month into Q2 2007, the Company announced that it expected revenues for Q2 2007 to be "higher" than the prior quarter's reported revenues of over $5 million. Eight days later on August 15, 2006, the Company entered into definitive agreements with private investors to sell over $11.9 million worth of the Company's stock (the "Private Placement"). On August 29, 2006, the Company's Vice President of Worldwide Sales exercised and sold a significant portion of the Company's securities for gross proceeds over $600,000.

The Complaint alleges that in the beginning of September 2006, with less than four weeks left in Q2 2007, the Company participated in an investor conference sponsored by Roth Capital Partners (the "Roth Conference"). The Complaint alleges that at the Roth Conference, the Company remained silent about the impending revenue implosion that would follow. Rather, as the Complaint asserts, the Company continued to tout the Company's performance -- misleading investors.

The Complaint further alleges that on or around September 28, 2006, without any prior warning, the Company shocked the market when it announced that its Q2 2007 revenues would not be "higher" than $5 million as previously announced, but rather more than 90% less, or $300,000 to $400,000. As a result of these adverse disclosures, the Company's stock lost nearly 59% of its value that day on extremely heavy volume. These adverse disclosures also led to an analyst downgrade which caused further declines.

On April 17, 2006, the Court issued an Order granting the motion to appoint Mitch Metzman as lead Plaintiff and to approve his selection of the Rosen Law Firm, P.A. to serve as lead Counsel, and Glancy, Binkow & Goldberg, L.L.P. as liaison Counsel. Further, according to the Order, several actions are now consolidated under In re TVIA, Inc., Securities Litigation, Master Docket No. 06-CV-06304. On July 30, 2007, a Consolidated Class Action Complaint was filed. Without filing a motion to dismiss or providing an answer to the Complaint, Defendants reached a tentative settlement agreement with Plaintiffs for $2.85 million. The settlement was preliminarily approved on October 12, 2007.

On February 6, 2008, the Court entered the Final Judgment and Order of Dismissal with Prejudice. According to the Order, signed by U.S. District Judge Ronald M. Whyte, the settlement is approved and the claims are dismissed with prejudice.