A class action lawsuit was filed on September 17, 1998 in the Santa Clara Superior Court for the State of California on behalf of all persons who own the common stock of Information Storage Devices (ISD) to enjoin the consummation of the proposed $63.8 million acquisition of ISD by Winbond Electronics Corporation. Alternatively, in the event that the transaction is consummated, the complaint seeks to recover damages caused by the director defendants' breach of fiduciary duties to assure the maximization of stockholder value, in that the proposed transaction is not the result of arm's-length negotiations, but was fixed arbitrarily by ISD and agreed to by defendants as part of the unlawful plan and scheme to obtain the entire ownership of ISD at the lowest possible price. The individual defendants stand to profit the most from the proposed takeover of ISD by Winbond. As a group, the Individual Defendants hold over 10% of all shares of ISD's common stock.

Update

If you own ISD stock, you are automatically a class member and you need do nothing further at this time to protect your rights. If and when the Court awards any compensation based on damages to the class, notice will be given to the class, at which point you will be given the option to opt out of the award or participate in the award. If you choose to participate in the award, any compensation awarded will be divided among the members of the class under court supervision and on a proportionate basis determined by the loss incurred by each class member.