A class action lawsuit has been filed in the U.S. District Court for the Southern District of California on behalf of purchasers of Imaging Technologies, Inc. ("ITEC" or the "Company") (NASD:ITEC) securities from April 21, 1998 to and including October 9, 1998 (the "Class Period").
ITEC develops, manufactures and distributes printer products for use in graphics and publishing, digital photography and other technical markets.
The defendants include ITEC and certain of its officers and directors. The Complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5). Specifically, the Complaint alleges that during the Class Period, defendants, among other things, materially misrepresented the financial condition of ITEC by disseminating to the investment community false and misleading financial statements during the Class Period. It is further alleged that these financial statements were deceptive and failed to conform with Generally Accepted Accounting Procedures ("GAAP") and that the Company had failed to disclose: (a) lower sales; (b) contract cancellations; (c) the Company's inability to collect payments on its receivables; and (d) the accrual of eighteen months worth of undisclosed costs relating to ITEC's mergers.

Update

This case has been settled. The Claims Administrator for this litigation is Berdon Claims Administration LLC. The deadline for submitting a proof of claim was July 5, 2003. The cash part of the Net Settlement was distributed on June 26, 2004. If you would like further information about the settlement, or would like to download a copy of the Notice of Pendency and Proposed Settlement of Class Action and Settlement Hearing, please go to www.berdonclaims.com or call (800) 766-3330.

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