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Law Offices of Howard G. Smith Announces Investigation On Behalf of Shareholders of NIC, Inc.

^{Published on 2010-08-09 17:40:56 - Market Wire}
 

BENSALEM, Pa.--([ BUSINESS WIRE ])--Law Offices of Howard G. Smith announces that it is investigating potential claims against NIC, Inc. (aNICa or the aCompanya) (NASDAQ:EGOV) concerning possible breaches of fiduciary duty or other violations of law by the Companya™s board of directors. NIC provides eGovernment services, including Internet websites and applications to access government information online and complete transactions, apply for permits, retrieve drivera™s license records, and file government-mandated forms or reports.

"expects to continue to incur significant legal fees and other expenses and could incur penalties in connection with the ongoing SEC investigation and Audit Committee review."

The investigation concerns the Companya™s August 5, 2010 disclosure that the U.S. Securities and Exchange Commission (SEC) Division of Enforcement ais considering recommending that the SEC authorize a civil injunctive action against the Company and its Officers alleging violations of various provisions of the federal securities laws.a The allegations relate to an ongoing SEC investigation and NICa™s own internal investigation into payments made for the reimbursement of expenses from 2004 through June 2007 to Jeffrey S. Fraser -- the Companya™s former chairman and chief executive officer. The Companya™s statement indicated that the SEC abelieves that the Company and its Officers should have responded sooner and more completely to indications of potential misconduct by Mr. Fraser involving claiming personal expenses as reimbursable business expenses,a and ashould have characterized certain authorized payments to Mr. Fraser as compensation rather than reimbursed business expenses.a The Company further disclosed that the Audit Committee of NICa™s board of directors is also reviewing expense reimbursement to Mr. Fraser for 1999 through 2003 and the Company aexpects to continue to incur significant legal fees and other expenses and could incur penalties in connection with the ongoing SEC investigation and Audit Committee review.a

If you purchased shares of NIC and still hold those shares, if you have information or would like to learn more about these claims, or if you wish to discuss these matters or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to [ howardsmith@howardsmithlaw.com ], or visit our website at [ http://www.howardsmithlaw.com ].