Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Announces Class Action Lawsuit Against AuthenTec, Inc.

WASHINGTON -- The law firm Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed a lawsuit in the United States District Court for the Middle District of Florida on behalf of its client and on behalf of other similarly situated purchasers of AuthenTec, Inc. ("AuthenTec" or the "Company") (NASDAQ: AUTH) common stock during the period between April 28, 2008 and September 5, 2008, inclusive (the "Class Period").

The complaint charges AuthenTec and certain of its officers and directors with violations of the Securities Exchange Act of 1934 (the "Exchange Act"). AuthenTec is a mixed-signal semiconductor company that provides fingerprint authentication sensors and solutions to the high-volume personal computer, wireless device, and access control markets. The Company's sensors enable users to access and control multiple functions on an electronic device by touching or sliding a finger across the sensor.

The complaint alleges that, during the Class Period, Defendants issued numerous materially false and misleading statements which caused AuthenTec's securities to trade at artificially inflated prices. More specifically, the complaint alleges that defendants' public statements were false and misleading or failed to disclose or indicate the following: (1) that the Company's sales growth was slowing; (2) that AuthenTec would not meet its previously-issued financial guidance; (3) that AuthenTec was flooding its customers with excess inventory; (4) as such, the Company's financial results were materially inflated; (5) that the Company lacked adequate internal controls; and (6) as a result, statements made by the Company's management during the Class Period regarding the Company's financial results and strong revenue growth lacked a reasonable basis. The complaint further alleges that Company insiders sold a substantial amount of AuthenTec stock during the Class Period.

According to the complaint, on September 7, 2008, AuthenTec shocked investors when the Company issued a press release in which it revised downward its previously-issued financial guidance. In the press release, AuthenTec told investors that "the Company attributes the reduction in estimated revenue to an overstocked inventory position at a new customer and the impact of lower than expected sales of higher-end notebooks. . . " It is also alleged that during a conference call with analysts the next day, the Company further revealed that, "as it turns out, the effect of the downturn that has impacted many others in the semiconductor industry seems to have been masked to us by the fact that one of our newer customers overbought in the second quarter and even into the beginning of this quarter. This has led to an overstocking position on their part and thus reduced forecasts for the remainder of the year . . . we are still working to fully understand the impact and the size of the inventory build, but at this point we are assuming that it will take at least a quarter for them to work through this inventory." The complaint alleges that on this news, AuthenTec's shares declined $3.84 per share, or more than 60%, to close on September 8, 2008 at $2.55 per share, on unusually heavy trading volume.

If you are a member of the class, you may, no later than December 8, 2008, request that the Court appoint you as Lead Plaintiff of the class. Any member of the purported class may move the Court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member.

Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia, Chicago, San Francisco, and London, and is active in major litigation pending in federal and state courts throughout the nation. You may visit the firm's website at www.cmht.com.

The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

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Steven J. Toll, Esq.
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Tyler Gaffney
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Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
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1100 New York Avenue, N.W.
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West Tower, Suite 500
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Washington, D.C. 20005
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Telephone: [phone] or [phone]
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Email: [e-mail] or [e-mail]