Class Action Lawsuit by Brower Piven in Connection With Acquisition of LaserCard

Brower Piven announces that a class action lawsuit has been commenced in the Court of Chancery in the State of Delaware on behalf of all shareholders of LaserCard Corporation.

The claims asserted in the complaint arise from the proposed buyout of LaserCard by ASSA ABLOY AB. On December 20, 2010, LaserCard announced that it had entered into a definitive merger agreement to be acquired by ASSA ABLOY. According to the complaint, and under the Agreement, LaserCard is to be acquired by ASSA ABLOY at a price of $6.25 per share through a cash tender offer. According to the complaint, the Acquisition is expected to close in the first quarter of 2011.

The complaint alleges that the Acquisition is the product of a fundamentally flawed process in which LaserCard’s Board of Directors failed to obtain the best possible price and adequately shop the company before entering into the Agreement with ASSA ABLOY. Indeed, the complaint alleges that the $6.25 per share acquisition price is unfair because the company is in a financially strong position, with cash, cash equivalents, and investments of $36.2 million at October 1, 2010, and debt as of that date of only $100,000. Moreover, the complaint alleges that the company has received significant orders for its security cards in the last three months, including two orders from Saudi Arabia totaling over $4 million, and a nearly $3 million order from Costa Rica. Furthermore, the complaint alleges that there were three bids made for LaserCard at $6.25 per share, which indicates that the company is worth more than that amount.