Item 8.01 Other Events.

On March 18, 2009, Secure Keyboards, Ltd. and two of its general partners, Luis Villalobos and Howard B. Miller (the "Plaintiffs"), filed suit in Los Angeles Superior Court against SCM Microsystems, Inc. ("SCM"), Felix Marx, SCM's Chief Executive Officer and Hirsch Electronics Corporation ("Hirsch"). Plaintiffs allege multiple causes of action, including interference with contract, in connection with the prospective merger of SCM and Hirsch and a 1994 settlement agreement entered into among Secure Keyboards, Hirsch and Secure Networks, Ltd. The plaintiffs are seeking damages, including approximately $20,200,000, and declaratory relief.

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