Stamps.com 2005 Annual Report Download - page 19

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settlement of the litigation against us which was further documented in a Stipulation and Agreement of Settlement filed with the court. The
proposed settlement terms would not require Stamps.com to make any payments. The proposed settlement was preliminarily approved by the
court in February 2005, but remains subject to a fairness hearing and final approval by the court which has not yet occurred.
In addition to the class action lawsuits against us, over 1,000 similar lawsuits have also been brought against over 250 companies which
issued stock to the public in 1998, 1999, and 2000, and their underwriters. These lawsuits (including those naming us) followed publicized
reports that the Securities and Exchange Commission was investigating the practice of certain underwriters in connection with initial public
offerings. All of these lawsuits have been consolidated for pretrial purposes before United States District Court Judge Shira Scheindlin of the
Southern District of New York. We have placed our underwriters on notice of our rights to indemnification, pursuant to our agreements with
the underwriters. We have also provided notice to our directors' and officers' insurers, and believe that we have insurance applicable to the
lawsuits. We also believe that the claims against us and our officers and directors are without merit, and intend to defend the lawsuits
vigorously.
We are not currently involved in any other material legal proceedings, nor are we aware of any other material legal proceedings pending
against us.
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 December 31, 2005.
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