Artificial Life, Inc. is a company that develops and sells mobile phone application software.

According to a press release dated April 7, 2011, on April 13, 2010, the Company engaged KPMG to be its accountant. When conducting the audit for FY 2010, KPMG disagreed with the Company over the Company’s accounting treatment of reserves for account receivables and revenue recognition, preventing KPMG from issuing an unqualified opinion. The Company refused to alter the accounting treatment of these entries, and dismissed KPMG on April 6, 2011. On April 7, 2011, the Company’s stock price fell over 25%, damaging investors.

On April 15, 2011, a Federal Securities Class Action was filed against Artificial Life, Inc., in the Central District of California, Western Division.

On April 29, 2011, the Plaintiff filed notice that the action is dismissed without prejudice pursuant to FRCP 41(a)(1).