The original complaint alleges violations of the Securities Exchange Act of 1934. During the class period, Viseon issued a series of statements relating to Viseon's next generation VisiFone broadband video phone. Viseon claimed to have developed the VisiFone II, the next generation of consumer telephony. Viseon failed to disclose to the public that the development of the VisiFone II was only partially completed, and that it was not ready for production. The complaint alleges that Viseon and its officers were well aware of production problems in connection with the VisiFone II. On May 15, 2006, Viseon announced in a public filing that minimal revenue was recorded on the deployment of units of next generation VisiFones to carriers since the deployments continued to be for trial-purposes only. Viseon's stock price fell as a result of this announcement. The stock is currently trading at $0.01.
On November 6, 2007, the Court granted the motion to appoint lead plaintiffs and for approval of lead counsel. On January 22, 2008, an Amended Class Action Complaint was filed. On May 2, 2008, the parties entered into mediation, and on June 6, 2008, the parties filed a motion for preliminary approval of settlement. That day, a Stipulation of Settlement was also filed detailing the settlement. According to the Stipulation, a settlement fund in the amount of $550,000 was established. On July 2, 2008, U.S. District Judge Reed C. O'Connor preliminarily approved the settlement.
According to a press release dated July 22, 2008, a hearing will be held before the Honorable Reed O'Connor, United States District Judge, United States Courthouse, 1100 Commerce Street, Dallas, Texas, Courtroom 1505, at 1:00 p.m., on October 14, 2008 (the "Settlement Hearing"), to determine (1) finally whether this Litigation satisfies the applicable prerequisites for class action treatment under Rules 23(a) and (b) of the Federal Rules of Civil Procedure; (2) whether the terms of the Stipulation, including the Settlement Fund consisting of $550,000.00 plus accrued interest should be approved as fair, just, reasonable, and adequate to Class Members; (3) whether the proposed plan to distribute the settlement proceeds (the "Plan of Allocation") is fair, just, reasonable, and adequate; (4) whether to enter a Bar Order and approve the Releases by and in favor of the Class Members, as described in the Stipulation; (5) whether the application by Plaintiffs' Lead Counsel for an award of attorneys' fees and reimbursement of expenses should be approved; and (6) whether the Litigation should be dismissed with prejudice in accordance with the terms of the proposed Final Judgment and Order of Dismissal with Prejudice.
On October 14, 2008, the Settlement Hearing was held before U.S. District Court Judge Reed C. O'Connor. At the hearing, the Court approved the settlement, awarded attorney’s fees in the amount of 30% of the settlement and awarded $48,674.17 in reimbursement of expenses. The plaintiff has been ordered to submit a final judgment consistent with findings in the provisional order on or before December 16, 2008. On December 22, 2008, Judge O'Connor issued the Final Judgment and Order of Dismissal with Prejudice. On September 2, 2009, Judge O’Connor granted the Motion for Entry of Order Authorizing Distribution of Settlement Fund and Approving Reimbursement of Final Administration Expenses.