Verifone Systems, Inc. (NYSE: PAY), the global leader in secure electronic payment solutions, announced it received notice today that the United States District Court for the Northern District of California dismissed, with prejudice, the Amended Complaint in In Re Verifone Holdings, Inc. Shareholder Derivative Litigation No. C 07-6347 MHP, a shareholder derivative lawsuit filed in December 2007 against certain of the company's present and former directors and officers. The lawsuit arose out of the Company's 2007 restatement of certain of its quarterly financial results.
According to the Court, the plaintiff failed to make proper demand and provided no substantial reason to question the disinterestedness or independence of a majority of the company's board of directors. The Court dismissed the case with prejudice, terminating the matter and thus prohibiting plaintiffs from amending their pleadings.
"We are extremely pleased with the Court's ruling as we believed from the beginning that this case had no foundation," said Douglas G. Bergeron, Chief Executive Officer of Verifone. "We believe the Court properly recognized the right of the board of directors to manage the company's affairs."
CAUTION CONCERNING FORWARD-LOOKING STATEMENTS
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s current expectations or beliefs and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the forward-looking statements herein due to changes in economic, business, competitive, technological and/or regulatory factors, and other risks and uncertainties affecting the operation of the business of Verifone Systems, Inc. These risks and uncertainties include: our ability to identify and complete acquisitions and strategic investments and successfully integrate them into our business, our ability to protect against fraud, the status of our relationship with and condition of third parties upon whom we rely in the conduct of our business, our dependence on a limited number of customers, uncertainties related to the conduct of our business internationally, our ability to effectively hedge our exposure to foreign currency exchange rate fluctuations, our dependence on a limited number of key employees, short product cycles, rapidly changing technologies and maintaining competitive leadership position with respect to our payment solution offerings. For a further list and description of such risks and uncertainties, see our filings with the Securities and Exchange Commission, including our annual report on Form 10-K and our quarterly reports on Form 10-Q. Verifone is under no obligation to, and expressly disclaims any obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, changes in assumptions or otherwise.
Verifone Systems, Inc. (“Verifone”) (NYSE: PAY) is the global leader in secure electronic payment solutions. Verifone provides expertise, solutions and services that add value to the point of sale with merchant-operated, consumer-facing and self-service payment systems for the financial, retail, hospitality, petroleum, government and healthcare vertical markets. Verifone solutions are designed to meet the needs of merchants, processors and acquirers in developed and emerging economies worldwide.