Hypercom Corp. Announces Dismissal of Securities Class Action Complaint.PHOENIX -- Hypercom Corp. (NYSE NYSE See: New York Stock Exchange : HYC HYC Houston Yacht Club (Texas) ) today announced that Judge Neil Wake of the U.S. District Court for the District of Arizona has entered an Order dismissing the amended class action complaint that was initially filed in 2005 alleging securities violations by Hypercom and two former executives. The complaint related to Hypercom's restatement of its financial statements for the first three quarters of 2004 because certain terminal leases generated by a Hypercom subsidiary in the United Kingdom were accounted for as sales-type leases, rather than operating leases. In its Jan. 24, 2006, Order dismissing the complaint, the Court stated that the plaintiffs failed to plead particularized par·tic·u·lar·ize v. par·tic·u·lar·ized, par·tic·u·lar·iz·ing, par·tic·u·lar·iz·es v.tr. 1. To mention, describe, or treat individually; itemize or specify. 2. facts establishing a strong inference that the company and the other defendants acted with scienter [Latin, Knowingly.] Guilty knowledge that is sufficient to charge a person with the consequences of his or her acts. The term scienter refers to a state of mind often required to hold a person legally accountable for her acts. , as required by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Under the terms of the Court's Order, the complaint was dismissed without prejudice Without any loss or waiver of rights or privileges. When a lawsuit is dismissed, the court may enter a judgment against the plaintiff with or without prejudice. When a lawsuit is dismissed without prejudice and the plaintiffs will have 30 days, or until Feb. 23, 2006, to file a further amended complaint amended complaint n. what results when the party suing (plaintiff or petitioner) changes the complaint he/she has filed. It must be in writing, and can be done before the complaint is served on any defendant, by agreement between the parties (usually their lawyers), in an attempt to cure the deficiency. About Hypercom (www.hypercom.com) Global payment technology leader Hypercom Corp. delivers a full suite of high security, end-to-end electronic payment products and services. The company's solutions address the high security electronic transaction needs of banks and other financial institutions, processors, large scale retailers, smaller merchants, quick service restaurants, and users in the transportation, healthcare, prepaid, unattended and many other markets. Hypercom solutions enable businesses in more than 100 countries to securely expand their revenues and profits. Forward-Looking Statements This press release includes statements that may constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding the results of pending litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . Readers are referred to documents filed by Hypercom with the Securities and Exchange Commission, specifically the most recent reports on Forms 10-K, 10-Q, and 8-K, each as it may be amended from time to time, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Among the important factors or risks that could cause actual results to differ from those contained in the forward-looking statements in this press release are the ultimate resolution of current litigation matters, including the shareholder class action and a shareholder derivative action, on our business, as well as assumptions related to the foregoing. Hypercom is a registered trademark of Hypercom Corp. HYCF |
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