Vistaprint 2009 Annual Report Download - page 50

are sometimes collectively referred to herein as the “Vertrue Defendants”). The Texas Complaint
alleges that the Defendants violated, among other statutes, the Electronic Funds Transfer Act, the
Electronic Communications Privacy Act, the Texas Deceptive Trade Practices-Consumer Protection
Act and the Texas Theft Liability Act, in connection with certain membership discount programs offered
to Vistaprint customers on our Vistaprint.com website. The Texas Complaint also seeks recovery for
unjust enrichment, conversion, and similar common law claims. Subsequent to the filing of the Texas
Complaint, on July 31, 2008, August 25, 2008, September 3, 2008, September 10, 2008 and
September 11, 2008, nearly identical purported class action lawsuits were filed in the United States
District Court, District of New Jersey, the United States District Court, Southern District of Alabama, the
United States District Court, District of Nevada, the United States District Court, District of
Massachusetts, and the United States District Court, District of Florida, respectively, against the same
Defendants, and in one case Vistaprint Limited, on behalf of different plaintiffs. The complaints in each
of these nearly identical lawsuits include substantially the same purported Federal and common law
claims as the Texas Complaint but contain different state law claims. In addition, 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 by a different plaintiff in the United States District Court, District of Massachusetts,
against Vistaprint Limited, 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.
On September 8, 2008, VistaPrint USA, Incorporated filed an Answer to the Texas Complaint in
the United States District Court for the Southern District of Texas, and on September 9, 2008,
VistaPrint USA, Incorporated filed a Motion to Dismiss for Improper Venue in the United States District
Court for the Southern District of Texas. Subsequently, on or about September 16, 2008, the plaintiff in
one of the cases pending before the United States District Court for the District of Massachusetts filed
a Motion before the Judicial Panel on Multidistrict Litigation seeking the consolidation and transfer of
pretrial proceedings in all of the outstanding cases to the Massachusetts District Court. Following that,
on or about September 24, 2008 and September 25, 2008, the Vertrue Defendants and VistaPrint
USA, Incorporated and Vistaprint Limited, respectively, filed motions before the Judicial Panel on
Multidistrict Litigation to transfer all of the outstanding cases, as well as any cases subsequently filed
involving similar facts or claims, to the United States District Court for the Southern District of Texas for
coordinated pretrial proceedings. All of the purported class action lawsuits in which the Defendants
have been served were subsequently stayed pending resolution of the motions for consolidation and
transfer pending before the Judicial Panel on Multidistrict Litigation. On December 11, 2008, the
Judicial Panel on Multidistrict Litigation ruled in favor of the motions brought by the Vertrue
Defendants, VistaPrint USA, Incorporated and Vistaprint Limited and ordered the transfer of all of the
outstanding cases to the United States District Court for the Southern District of Texas for coordinated
pretrial proceedings. As a result of the ruling of the Judicial Panel on Multidistrict Litigation, on March 2,
2009 four of the existing plaintiffs filed a Consolidated Complaint with the United States District Court
for the Southern District of Texas.
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