Claranova settles US legal dispute regarding subscriptions

Claranova announces the signing of a settlement agreement to end a class action lawsuit filed in the United States against several North American entities of the group, based on allegations of violations of California consumer law. Since 2022, the state of California has implemented new regulations governing, among other things, the automatic renewal practices of products and services sold by subscription. Since this law came into effect, class action lawsuits of this nature have become increasingly common in the US consumer software industry, regardless of the quality of the products offered or customer satisfaction levels, the company said, adding that in this context, Avanquest Software SAS and certain of its North American subsidiaries became the subject of a class action lawsuit filed in the California courts based on allegations of violations of California law regarding automatic subscription renewals.

The company said, despite its contention it complied with all applicable laws, “the group’s decision to enter into this settlement agreement reflects a pragmatic approach to managing legal and financial risks, in the best interests of all its stakeholders. The agreement provides for the payment by Avanquest of a total settlement indemnity of US$2.5 million (approximately €2.13 million) in exchange for the definitive and irrevocable termination of all claims covered by the class action.”

In other Claranova news, the company’s board approved the proposed transfer of the listing of its shares from the Euronext Paris regulated market (Compartment C) to the Euronext Growth Paris market.

The company said this project is part of a pragmatic approach to managing resources and costs. This choice will reduce regulatory constraints and obligations, thereby optimizing listing-related costs. The resources and means thus freed up can be fully redirected towards the execution of the strategic plan dedicated to revenue growth and improved profitability.