ServiceMagic 2009 Annual Report Download - page 25

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Table of Contents
well as damages in an unspecified amount, various forms of equitable relief, restitution, and disgorgement of remuneration received by the
individual defendants from the Company.
On September 15, 2005, IAC and the other defendants filed motions to dismiss both the securities class action and the shareholder
derivative suits, which motions the plaintiffs opposed. On October 12, 2006, the court heard oral argument on the motions. On March 22, 2007,
the court issued an opinion and order (i) granting the defendants' motion to dismiss the complaint in the securities class action, with leave to
replead, and (ii) granting the defendants' motion to dismiss the complaint in the shareholder derivative suits, with prejudice.
On April 24, 2007, the plaintiffs in the shareholder derivative suits filed a notice of appeal to the United States Court of Appeals for the
Second Circuit from the district court's order of dismissal. On consent of the parties, the appeal has been withdrawn from active consideration by
the court of appeals. In addition, the plaintiffs have stipulated that they will abandon their appeal if the district court dismisses with prejudice the
second amended complaint in the securities class action (described below).
On May 15, 2007, the plaintiffs in the securities class action filed a second amended complaint. The new pleading continues to allege that
the defendants failed to disclose material information concerning problems at the Company's then-travel businesses and to assert the same legal
claims as its predecessor. On August 15, 2007, the defendants filed a motion to dismiss the second amended complaint, which motion the
plaintiffs have opposed. The motion remains pending.
The Company believes that the claims in the class action and the derivative suits lack merit and will continue to defend vigorously against
them.
Item 4. Submission of Matters to a Vote of Security Holders
There were no matters submitted to a vote of any of the Company's security holders during the fourth quarter of 2009.
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