Lantronix, Inc.

A shareholder class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Lantronix securities between August 30, 2000 and September 11, 2002. The complaint alleged the electronic networking devices maker violated section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated there under by the Securities and Exchange Commission. The class claimed Lantronix issued and maintained a "buy" recommendation on Lantronix securities without any rational economic basis, failed to disclose that they were issuing and maintaining these recommendations to obtain investment banking business, and concealed significant, material conflicts of interest that prevented them from providing independent and objective analysis. Lantronix has agreed to a $15.2 million class action settlement. (Dec-28-06) [OC REGISTER: LANTRONIX SHAREHOLDERS]