Orem, UT: (Sep-21-07) A class action lawsuit was brought against iMergent Inc., an e-commerce software provider, following a complaint filed by the Securities and Exchange Commission, alleging that the defendants violated federal securities laws by making material misleading statements and omissions, providing inaccurate financial information, and failing to make proper disclosures. The initial class action suit filed in 2005, reached settlement after the company entered into a memorandum of understanding, agreeing to a $2.8 million payout. iMergent expects to pay the $2.8 million settlement to the class plaintiffs through the directors and officers insurance policy maintained by the company. As a result, iMergent stated that the settlement is not expected to affect the company's operating results.
The memorandum of understanding is subject to certain contingencies that require court approval, including a provision that prevents its former independent auditor, Grant Thornton LLP, from prosecuting any claims against the company related to the litigation. The settlement was reached without any admission of liability. [FORBES: IMERGENT SECURITIES]
