According to a complaint filed on February 9, 2012, the Plaintiffs allege violations of the Federal Securities laws in connection with the Defendant’s decision to wind up operations of the Company.
On January 12, 2012, the Company filed a proxy statement with the Securities and Exchange Commission announcing the board’s unanimous decision to wind up and dissolve the company pursuant to a Plan of Liquidation by a Consent Solicitation Statement and not a meeting of the shareholders. The Plaintiffs claim that the board’s actions breach their fiduciary duties because a winding up of the company does not maximize shareholder value by not taking into account future revenues from acquiring and prosecuting intellectual property. Moreover, the complaint also charges that the proxy statement contains misleading and inadequate information to shareholders for the company’s liquidation.
On February 23, 2012, the plaintiff filed a Notice voluntarily dismissing this action without prejudice.