iMergent Announces Australian Court Enters Settlement Between ACCC and iMergent; Company to Continue Conducting Educational Wor
May 09 2006 - 8:00AM
Business Wire
iMergent, Inc. (AMEX:IIG), a leading provider of eCommerce software
and services for small businesses and entrepreneurs, announced the
Australian court entered a settlement agreement on May 9, 2006 in
Sydney, Australia between the Australian Competition and Consumer
Commission (ACCC) and iMergent. The settlement resolves all
outstanding matters with the ACCC. As a result, iMergent will
continue to conduct StoresOnline(TM) workshops in Australia. All
previous injunctions issued against iMergent have expired. Under
terms of the settlement and without an admission of any liability,
iMergent has agreed to allow refunds up to a maximum of
approximately US $468,000 to certain Australian customers and pay
related administrative costs to the ACCC of approximately US
$28,000. The refund account is funded entirely by funds of iMergent
presently held as restricted cash in an Australian bank account and
will be transferred into the refund account. If the refund account
is not exhausted by the claims of certain Australian customers, the
remainder of the refund account will be paid back to iMergent.
iMergent will not be paying any other fees, costs or penalties
under the settlement agreement. If the total value of qualifying
claims exceeds the amount of the refund account payments will be
made pro rata to those seeking refunds. iMergent's total liability
in this matter will not exceed approximately US $496,000, and the
company had reserved a substantial portion of this settlement
amount in previous quarters. "Australia has always been an exciting
market and again represents a significant international opportunity
for growing our business," said Don Danks, chairman and chief
executive officer of iMergent. "With this settlement behind us, we
can look forward to again bringing our StoresOnline workshops to
Australia." Under the terms of the settlement agreement, a letter
containing information on making a statutory declaration and a
claim for a refund will be sent by the ACCC to: (1) all customers
who have filed written complaints with the ACCC and/or iMergent
that have not been resolved; and (2) all customers who respond to
the ACCC's press release. In addition, the ACCC will be providing
notification of the requirements and procedures for claiming a
refund in a press release. All terms of the settlement agreement
are in Australian dollars. All dollar amounts appearing in this
press release are shown on an "as converted" basis to the
approximate US dollar equivalent as of March 31, 2006. The actual
payments will be made in Australian dollars; thus, actual US dollar
equivalents will vary according to prevailing exchange rates at the
time of payments. Safe Harbor Statement Statements made in this
press release regarding iMergent's conduct of StoresOnline
workshops in Australia and other statements that are not historical
in nature constitute forward-looking statements within the meaning
of the Safe Harbor Provisions of the Private Securities Litigation
Reform Act of 1995. Such statements are based on the current
expectations and beliefs of the management of iMergent and are
subject to a number of risks and uncertainties that could cause
actual results to differ materially from those described in the
forward-looking statements. Such risks and uncertainties include,
without limitation, the Company's continued ability to maintain
operations; the Company's ability generally to continue to provide
domestic and international workshops and specifically provide
workshops in Australia; the total amount of claims filed by
customers; whether there will be any funds returned to iMergent
from the settlement account; whether the terms of the settlement
will be deemed to be adhered to by iMergent on an ongoing basis;
whether regulatory authorities will bring future actions against
iMergent; and whether Australia will ultimately represent a
significant international opportunity for iMergent to grow its
business. For a more detailed discussion of factors that affect
iMergent's operations, please refer to the Company's Form 10-K for
the year ended June 30, 2005 and its Form 10-Q for the quarterly
period ended March 31, 2006. The Company undertakes no obligation
to update this forward-looking information. About iMergent iMergent
provides eCommerce solutions to entrepreneurs and small businesses
enabling them to market and sell their business products or ideas
via the Internet. Headquartered in Orem, Utah, the company sells
its proprietary StoresOnline software and training services,
helping users build a successful Internet strategy to market
products, accept online orders, analyze marketing performance, and
manage pricing and customers. In connection with Internet software,
iMergent also offers Website development, Website hosting,
marketing and mentoring products and services. iMergent typically
reaches its target audience through concentrated direct marketing
efforts to fill Preview Sessions, in which a StoresOnline expert
reviews the product opportunities and costs. These sessions lead to
a follow-up Workshop Conference, where experts train potential
users on the software and services and encourage them to make
purchases. iMergent, Inc. and StoresOnline are trademarks of
iMergent, Inc.
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