UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

ZIX CORPORATION

Texas		0-17995		75-2216818
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o     Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o     Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o     Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o     Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

Item 8.01 Other Events.

     As previously announced by Zix Corporation (Nasdaq: ZIXI) (the “Company”) and described in its periodic filings with the Securities and Exchange Commission, the Company has agreed to settle certain pending purported securities class action lawsuits (the “Class Actions”) pending in the U.S. District Court for the Northern District of Texas, Dallas Division (the “Federal Court”). As part of the proposed settlement:

	•		The defendants’ insurer has agreed to pay an aggregate of $5.6 million, inclusive of claims of class members for damages and of attorney’s fees and expenses for the plaintiffs’ counsel for the Class Actions.
	•		The settlement amount is well within the Company’s liability insurance policy limits.
	•		There is no payment of any monies by the Company or the individual defendants to the plaintiffs or their counsel in connection with the proposed settlement and there is no admission of any wrongdoing by the Company or the individual defendants.

     The Company, throughout this litigation, has strenuously denied and continues to deny each of the allegations of wrongdoing and liability against it whatsoever. It decided to settle the Class Actions solely to avoid the burdens, risk, and substantial expense that would result from the continuation of these actions.

     The proposed settlement has received the preliminary approval of the Federal Court, and consistent with the Federal Rules of Civil Procedure, the class members will be provided notice of the proposed settlement and given the right to object or opt-out of the proposed settlement. The Court will hold a final approval hearing on June 16, 2008. Final settlement of the Class Actions is subject to final approval by the Federal Court.

     More details about the proposed settlement can be obtained at www.zixsecuritiessettlement.com. This is a web site established by the third-party administrator that the Federal Court has appointed to administer the collection and payment of claims from class members who may be entitled to collect damages in the final settlement. The web site is not maintained or operated by the Company and the documents and information available through the web site are not part of this filing on Form 8-K and shall not be deemed incorporated herein by reference.

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.