These excerpts taken from the SABA 10-K filed Aug 14, 2008.
STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%">We are also party to various legal disputes and proceedings arising from the ordinary course of general business activities. While, in the opinion of
management, resolution of these matters is not expected to have a material adverse effect on our consolidated financial position, results of operations or cash flows, the ultimate outcome of any litigation is uncertain. Were an unfavorable outcome
to occur, the impact could be material to us.
Litigation Relating to Claim of Patent Infringement by the Company
On November 19, 2007, a complaint was filed against the Company and ten other defendants by Gemini IP, LLC, in the United States District Court for the Eastern District of Texas (No. 07-CV-521). The complaint alleges infringement of a patent directed to a method for processing client help requests using a computer network and seeks permanent injunctive relief against continuing infringement, compensatory damages in an unspecified amount, and interest, costs and expenses associated with the litigation. The Company has filed an answer to the complaint denying all of the allegations. At the Companys request, the United States Patent and Trademark Office (the Patent Office) has instituted reexamination proceedings against the asserted patent and the District Court has stayed the action pending the outcome of those proceedings. The Company believes that it has meritorious defenses with respect to the asserted patent and intends to vigorously defend this action. However, due to the inherent uncertainties of litigation, the Company cannot accurately predict the ultimate outcome of the litigation. An unfavorable outcome of the litigation could materially and adversely affect the Companys business, financial condition and results of operations.