Adobe 2009 Annual Report Download - page 48

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48
lawsuit captioned Lodhia v. Omniture, Inc. et al., Case No. 090403499 (the “Lodhia Lawsuit”) in which the Omniture
Defendants, but not Adobe, were named. Additionally, on September 30, 2009, the plaintiff in the Lodhia Lawsuit filed a
response to defendants’ motion to consolidate, agreeing consolidation is appropriate, and also filed a motion seeking
appointment as lead plaintiff in the consolidated action. Omniture moved for an order consolidating all three lawsuits. The
plaintiffs in the three lawsuits filed a joint motion seeking preliminary injunction barring the consummation of the proposed
acquisition and requiring additional disclosures by Omniture in its Schedule 14D-9. At a hearing on October 20, 2009, the
court granted Omniture’s motion to consolidate the three cases and denied the plaintiffs’ motion for a preliminary injunction.
On December 30, 2009, the plaintiffs served the defendants with a consolidated amended complaint. Adobe intends to defend
the lawsuits vigorously.
In connection with our anti-piracy efforts, conducted both internally and through organizations such as the Business
Software Alliance, from time to time we undertake litigation against alleged copyright infringers. Such lawsuits may lead to
counter-claims alleging improper use of litigation or violation of other local laws. We believe we have valid defenses with
respect to such counter-claims; however, it is possible that our consolidated financial position, cash flows or results of
operations could be affected in any particular period by the resolution of one or more of these counter-claims.
From time to time, Adobe is subject to legal proceedings, claims and investigations in the ordinary course of business,
including claims of alleged infringement of third-party patents and other intellectual property rights, commercial,
employment and other matters. In accordance with GAAP, Adobe makes a provision for a liability when it is both probable
that a liability has been incurred and the amount of the loss can be reasonably estimated. These provisions are reviewed at
least quarterly and adjusted to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other
information and events pertaining to a particular case. Litigation is inherently unpredictable. However, we believe that we
have valid defenses with respect to the legal matters pending against Adobe. It is possible, nevertheless, that our consolidated
financial position, cash flows or results of operations could be negatively affected by an unfavorable resolution of one or
more of such proceedings, claims or investigations.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters were submitted to a vote of security holders during the quarter ended November 27, 2009.