Plantronics 2008 Annual Report Download - page 31

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25
ITEM 3. LEGAL PROCEEDINGS
We are presently engaged in various legal actions arising in the normal course of our business. We believe that it is unlikely that any
of these actions will have a material adverse impact on our operating results. However, because of the inherent uncertainties of
litigation, the outcome of any of these actions could be unfavorable and could have a material adverse effect on our financial
condition, results of operations or cash flows.
Six class action lawsuits were recently filed against the Company alleging that our Bluetooth headsets may cause noise-induced
hearing loss. Shannon Wars et al. vs. Plantronics, Inc. was filed on November 14, 2006 in the United States District Court for the
Eastern District of Texas. Lori Raines, et al. vs. Plantronics, Inc. was filed on October 20, 2006 in the United States District Court,
Central District of California. Kyle Edwards, et al vs. Plantronics, Inc. was filed on October 17, 2006 in the United States District
Court, Middle District of Florida. Ralph Cook vs. Plantronics, Inc. was filed on February 8, 2007 in the United States District Court
for the Eastern District of Virginia. Randy Pierce vs. Plantronics, Inc. was filed on January 10, 2007 in the United States District
Court for the Eastern District of Arkansas. Bruce Schiller, et al vs. Plantronics, Inc. was filed on October 10, 2006 in the Superior
Court of the State of California in and for the County of Los Angeles. The complaints state that they do not seek damages for personal
injury to any individual. These complaints seek various remedies, including injunctive relief requiring the Company to include certain
additional warnings with its Bluetooth headsets and to redesign the headsets to limit the volume produced, or, alternatively, to provide
the user with the ability to determine the level of sound emitted from the headset. Plaintiffs also seek unspecified general, special, and
punitive damages, as well as restitution. The federal cases have been consolidated for all pre-trial purposes in the United States
District Court for the Central District of Los Angeles before Judge Fischer. The California State Court case was dismissed by the
plaintiffs. The parties have provided a limited amount of discovery to each other. The defendants have filed a motion to dismiss
which is likely to be heard in mid-August 2008.
On May 13, 2008 a lawsuit was filed against the Company in the United States District Court for the Eastern District of Texas. The
complaint alleges that the Company infringed certain patents owned by Clear With Computers, LLC. These patents involve various
business practices commonly used on Websites such as supply chain and sales methods, sales and marketing systems, and inventory
systems. The complaint seeks various remedies including injunctions, damages, and costs.
We do not believe that the allegations in these lawsuits have any merit, and Plantronics will aggressively defend itself in these cases.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.