Corporate News

Image Entertainment, Inc. (NASDAQ: DISK) announced that its audited consolidated financial statements for the fiscal year ended March 31, 2009, included in the Company's Annual Report on Form 10-K filed on June 29, 2009, contained an explanatory paragraph, within the report of its independent registered public accounting firm, that expresses substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time. The factors contributing to this concern include the Company's recurring losses from operations, negative cash flows and limited access to capital. The Company may not be successful in its efforts to continue as a going concern.[SM]

I.D. Systems, Inc. (Nasdaq: IDSY) announced that its Board adopted a limited duration shareholder rights plan pursuant to which a dividend distribution of one preferred stock purchase right will be made for each outstanding share of the Company's common stock. The Board adopted the Rights Plan to assure that the Company's shareholders receive fair and equal treatment in the event of any proposed takeover of the Company, and to guard against partial tender offers, squeeze-outs, open market accumulation and other actions intended to gain control of the Company without paying all shareholders a fair price. The Rights Plan is not intended to and will not prevent an appropriate transaction at a full and fair price.

Jeffrey M. Jagid, Chief Executive Officer of the Company, commented, "Our Board of Directors is committed to enhancing value for and protecting the interests of our shareholders. Our Board of Directors has long held the view that the best way to enhance shareholder value is a strong stock price. As a result of the recent dislocations in the market, we feel it is prudent at this time to adopt a rights plan. Our Board of Directors will examine the rights plan every three years to determine whether it continues to be in the best interests of our shareholders."

Following the warning letter issued by the FDA regarding Zicam Cold Remedy nasal gel products, Matrixx Initiatives (Nasdaq: MTXX) announced that it expected additional lawsuits would be filed against the Company, which has been the case.

On June 22, 2009, a personal injury lawsuit was filed against the Company involving 117 plaintiffs who allege that the Company’s Zicam Cold Remedy nasal gel products have caused the permanent loss or diminishment of the sense of smell or smell and taste. Marilyn Adams et al. vs. Matrixx Initiatives, Inc., et al., Superior Court of the State of Arizona, Maricopa County.

On June 23, 2009, an economic class action lawsuit was filed against Matrixx Initiatives, purportedly on behalf of all persons who purchased Zicam Cold Remedy nasal gel products while in California or from a source in California within the four years prior to June 23, 2009.

The Company’s Position
The Company intends to vigorously defend each of the recently filed lawsuits.
As previously announced, the Company strongly disagrees with the FDA’s allegations that Zicam Cold Remedy nasal gel products are unsafe and that they were unlawfully marketed. However, the Company is conducting a recall of its Zicam Cold Remedy nasal gel products because of its desire to cooperate with the FDA. Soon, the Company will formally respond to the FDA’s warning letter and will request a meeting with the FDA to present comprehensive scientific and medical data and analyses demonstrating that these products are not unsafe.

There is no known causal link between the use of Zicam Cold Remedy nasal gel and impairment of smell or smell and taste. To date, no plaintiff has ever won a product liability case against Matrixx Initiatives on those grounds. The Company believes that upper respiratory infections and nasal and sinus disease are the causes of the smell dysfunctions reported by some consumers. One of the most common causes of smell disorders is the cold itself, the very condition our product is used to treat. Other causes are sinusitis and rhinitis, conditions that are sometimes present when our product is used.

LDK Solar Co., Ltd. (NYSE: LDK) sees Q2 revenues of $215 and $225 million, below the consensus of $247.2 million.

LDK Solar estimates shipments between 220 and 230 megawatts. This compares to its previously issued guidance for the second quarter of 2009 of wafer shipments in the range of 200 to 220 MW.

LDK Solar additionally provided an update on its financing activities. The company secured a loan in the aggregate principal amount of RMB 500 million (equivalent to approximately US$73 million), with a term of one year, from The Export-Import Bank of China. The company also secured a loan in the aggregate principal amount of RMB 500 million (equivalent to approximately US$73 million), with a term of three years, from Huarong International Trust Co., Ltd. to support LDK Solar's polysilicon plant construction.

Bank of America Corporation (NYSE: BAC) said the Board has authorized approximately $713 million in dividend payments to the U.S. government under the Troubled Asset Relief Program (TARP).

Dividends related to the government's investment in the company under TARP include the following:

The cash dividend of $312.50 per share, or a total of approximately $188 million, on the Fixed Rate Cumulative Perpetual Preferred Stock, Series N, is payable on August 17, 2009 to the U.S. Department of the Treasury, the shareholder of record, as of July 31, 2009. This quarterly dividend payment relates to the government's $15 billion investment in Bank of America made under the Capital Purchase Program of TARP.

The cash dividend of $312.50 per share, or a total of approximately $125 million, on the Fixed Rate Cumulative Perpetual Preferred Stock, Series Q, is payable on August 17, 2009 to the shareholder of record, the Treasury Department, as of July 31, 2009. This quarterly dividend payment relates to the government's $10 billion investment in Merrill Lynch & Co., Inc. made under the Capital Purchase Program of TARP.