of Settlement of all Derivative Litigation
OREM, Utah--(BUSINESS WIRE)--October 31, 2007--iMergent, Inc., (AMEX:IIG) a leading provider of eCommerce software for small businesses and entrepreneurs, announced the Third Judicial District Court in and for Salt Lake County of Utah provided preliminary approval of a settlement agreement between the company and all derivative litigation filed in various courts in Utah.
Under the terms of the settlement, iMergent is to receive a payment of $3.3 million in insurance proceeds. The funds will be used to pay $2.8 million for the settlement of the class action settlement, discussed in Form 8-K filed by the company on September 21, 2007, and $500,000 for attorney fees to derivative counsel.
The settlement also calls for the company to adopt certain corporate governance measures as well as present certain items to a vote of the company’ s shareholders. After final approval of the settlement and court approval of the class action settlement, the items that require a vote of the shareholders will be included in the next scheduled annual proxy statement. Additionally, after final approval of the settlement and court approval of the class action settlement, all corporate governance items not requiring approval of the company’ s shareholders, which have not already been adopted, will be adopted by the company.
Additional settlement terms have been filed in a Form 8-K with the Securities and Exchange Commission.
Safe Harbor Statement
Statements made in this press release regarding the company's (1) expectation of final approval of the Derivative Litigation settlement and (2) expectation of approval of the class action settlement are subject to certain risks and uncertainties in connection with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. For a more detailed discussion of risk factors that affect iMergent's operations, please refer to the company's Form 10-K for the year ended June 30, 2007.
About iMergent
iMergent provides eCommerce solutions to entrepreneurs and small businesses enabling them to market and sell their business products or ideas via the Internet. Headquartered in Orem, Utah, the company sells its proprietary StoresOnline software and training services, helping users build a successful Internet strategy to market products, accept online orders, analyze marketing performance, and manage pricing and customers. In connection with Internet software, iMergent also offers Web site development, Web hosting, marketing and mentoring products and services. iMergent typically reaches its target audience through concentrated direct marketing efforts to fill Preview Sessions, in which a StoresOnline expert reviews the product opportunities and costs. These sessions lead to a follow-up Workshop Conference, where experts train potential users on the software and services and assist them to make purchases. iMergent, Inc. and StoresOnline are trademarks of iMergent Inc.
Company Contact:
Robert Lewis
iMergent, Inc.
801.431.4695
investor_relations@imergentinc.com
Investor Relations Contact:
Kirsten Chapman
Lippert/Heilshorn & Associates
415.433.3777
kchapman@lhai.com
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