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| IMMR > SEC Filings for IMMR > Form 8-K on 9-Jan-2013 | All Recent SEC Filings |
9-Jan-2013
Other Events
This Report on Form 8-K is being filed by Immersion Corporation ("Immersion" or the "Company") regarding the settlement of certain stockholder litigation.
Settlement of Certain Litigation
On May 5, 2010, an action entitled Kasmer v. Immersion Corporation, Case No. 5457-VCG (the "Delaware Action"), was filed in Delaware Chancery Court by a stockholder seeking to enforce a demand to inspect certain of the Company's records pursuant to Section 220 of the Delaware General Corporation Law, as a possible prelude to the stockholder bringing a derivative action. The Company filed an answer on June 14, 2010, questioning whether a proper purpose for the records inspection had been stated and raising other defenses concerning the scope of the demand, among other deficiencies. Following a one-day trial on December 2, 2010, the Court significantly narrowed the scope of the demand and the Company responded accordingly. On October 24, 2011, the stockholder filed a motion seeking to compel further responses to the demand, and the Company opposed the stockholder's motion.
On May 30, 2012, the same stockholder filed a putative stockholder derivative action in San Francisco Superior Court, entitled Kasmer v. Richardson et. al., Case No. CGC-12-521211 (the "Derivative Action"), purportedly on behalf of the Company and naming certain of its former directors and officers as individual defendants. A Stipulation of Settlement in the Derivative Action setting forth the terms of the settlement was signed on August 22, 2012 (the "Settlement Stipulation"). The Delaware Action action was dismissed with prejudice by stipulation of the parties on October 22, 2012. The settlement of the Derivative Action and the terms of the Settlement Stipulation were approved by the San Francisco Superior Court on October 26, 2012, and the settlement became final on December 29, 2012.
Pursuant to the Settlement Stipulation the Company has agreed to institute and/or continue various corporate governance procedures and policies set forth in the Settlement Stipulation for a period of three years. The Court has also awarded plaintiff's counsel attorneys' fees and costs in an aggregate amount of $350,000. The Settlement Stipulation provides for a full release of claims between the defendants in the Derivative Action and their Related Parties (as defined in the Settlement Stipulation) and the plaintiff, for all claims that were or could have been brought in the Delaware Action and the Derivative Action. The Settlement Stipulation is available on the Company's website at http://www.immersion.com/docs/Immersion-Stipulation-of-Settlement.pdf.
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