Vistaprint 2008 Annual Report Download - page 44

Southern District of Texas has scheduled an initial pretrial conference for October 2, 2008. We also
have discovered that, on July 31, 2008 and August 25, 2008, nearly identical purported class action
lawsuits were filed in the United States District Court, District of New Jersey and in the United States
District Court, Southern District of Alabama, respectively, against the same Defendants on behalf of
different plaintiffs. The complaints in the New Jersey and Alabama lawsuits include substantially the
same purported Federal and common law claims as the Texas Complaint, but the New Jersey action
contains a state law claim under the New Jersey Consumer Fraud Act and the Alabama lawsuit does
not contain any additional state law claims. We have further discovered that, on August 28, 2008, a
purported class action lawsuit asserting substantially the same Federal and common law claims as the
Texas Complaint, but containing a state law claim under the Massachusetts Unfair Trade Practices
Act, was filed in the United States District Court, District of Massachusetts, against VistaPrint Ltd.,
VistaPrint USA, Inc. and the Vertrue Defendants.
Among other allegations, the plaintiffs in each action claim that after ordering products on our
vistaprint.com website they were enrolled in certain membership discount programs operated by the
Vertrue Defendants and that monthly subscription fees for the programs were subsequently charged
directly to the credit or debit cards they used to make purchases on vistaprint.com, in each case
purportedly without their knowledge or authorization. The plaintiffs also claim that the Defendants failed
to disclose to them that the credit or debit card information they provided to make purchases on
vistaprint.com would be disclosed to the Vertrue Defendants and would be used to pay for monthly
subscriptions for the membership discount programs. The plaintiffs have requested that the
Defendants be enjoined from engaging in the practices complained of by the plaintiffs. They also are
seeking an unspecified amount of damages, including statutory and punitive damages, as well as pre-
judgment and post-judgment interest and attorneys’ fees and costs for the purported class.
We believe we have meritorious defenses to these purported class action lawsuits and intend to
defend these actions vigorously. However, the lawsuits are in their earliest stages and we are unable
to express an opinion as to the likely outcome of such actions.
We are involved, from time to time, in various legal proceedings arising from the normal course of
business activities. Although the results of litigation and claims cannot be predicted with certainty, we
do not expect resolution of these matters to have a material adverse impact on our consolidated results
of operations, cash flows or financial position. However, an unfavorable resolution of such a
proceeding could, depending on its amount and timing, materially affect our results of operations, cash
flows or financial position in a future period. Regardless of the outcome, litigation can have an adverse
impact on us because of defense costs, diversion of management resources and other factors.
Item 4. Submission of Matters to a Vote of Security Holders
None.
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