Claranova Announces the Signing of a Settlement Agreement Resolving a Litigation in the United States

PARIS--(BUSINESS WIRE)--Regulatory News:

Claranova (Euronext Paris: FR0013426004 – CLA or the “Group”) announces the signing, earlier today, of a settlement agreement intended to resolve a class action lawsuit brought in the United States against several North American entities of the Group, based on allegations of violations of California consumer protection laws.

Context for Signing the Settlement Agreement

Since 2022, the state of California has introduced new regulations governing, in particular, the automatic renewal practices for products and services sold on a subscription basis. Since this law came into force, class actions of this nature have become increasingly common in the consumer software sector in the United States, regardless of the quality of the products offered or the level of customer satisfaction. It is in this context that Avanquest Software SAS and certain of its North American subsidiaries (collectively “Avanquest”) were the subject of a class action initiated before the California courts (Superior Court of the State of California, County of San Diego) based on allegations of non-compliance with California law relating to the automatic renewal of subscriptions.

The Group would like to point out that it develops and sells its solutions in more than 160 countries around the world, both to the general public and to businesses, pursuing high standards of quality, performance, transparency and customer satisfaction. The Group further reiterates that its commercial practices, and in particular its subscription renewal processes, are designed to ensure transparency for users and maintain the highest standards of quality, enabling its customers to benefit from the latest technological advances while continuing to evolve in line with market standards and the regulatory requirements applicable in the various jurisdictions in which it operates.

In this context, and in light of the potential duration, cost and inherent uncertainty of such proceedings, the Group's decision to enter into this settlement agreement is part of a pragmatic approach to managing legal and financial risks, in the interests of all its stakeholders. Under the terms of the agreement, Avanquest will pay a total settlement amount of USD 2.5 million (approximately EUR 2.13 million), in consideration for the full, final and irrevocable release of all claims covered by the class action.

The effectiveness of the settlement agreement remains subject to approval by the competent court, which is expected to occur during the first half of 2026.

The Group specifies that this settlement agreement, negotiated under the supervision of an independent mediator, does not constitute any admission of liability.

Financial Impact of the Settlement Agreement

The settlement amount provided for under the agreement will be paid in cash by Avanquest in two instalments during the first half of 2026. As such, this payment, which will be financed entirely from the Group’s available cash, will be reflected in the Group’s consolidated financial statements as of June 30, 2026. The payment of this settlement amount will have no impact on the Group’s previously announced ambitions for 2028.

About Claranova

Claranova is a leading software publisher in the Utilities, PDF and Photo segments. With a strong international focus, the Group generates nearly EUR 120 million in revenue, 94% of which is generated outside France. Claranova develops technology solutions available on the web, mobile and tablet, serving a broad customer base of both individuals and professionals.

Through its products and solutions marketed in more than 160 countries, the Group aims to “Transform technological innovation into simple, user-centric solutions and products.” Fully integrated, Claranova controls the entire value chain, from product development to customer acquisition, customer relationship management (CRM) and final payment through its proprietary platform.

Leveraging its expertise in digital marketing, artificial intelligence and data analytics across millions of active customers worldwide, the Group optimizes customer retention and the profitability of its activities. Positioned in high-potential markets, the Group intends to pursue its growth strategy while prioritizing profitability and operational excellence.

Claranova is eligible for the PEA-PME scheme.
For more information about the Claranova Group:
https://www.claranova.com or https://twitter.com/claranova_group

Important Notice

All statements other than statements of historical fact that may be included in this press release concerning future events are subject to (i) change without notice and (ii) factors beyond the control of the Group. Forward-looking statements are subject to inherent risks and uncertainties, beyond the control of the Group, that may cause the Group’s actual results or performance to differ materially from the results or performance expressed or implied by such forward-looking statements.