Lawsuit Against Rainbow Dismissed

At the plaintiffs’ request, a federal district court in Santa Ana has dismissed a shareholders’ lawsuit against Rainbow Technologies Inc. and some of its officers and directors, the company said Monday.

The suits were filed in December, after Rainbow reported lower-than-expected third-quarter results. The suits sought unspecified damages and alleged that the company and certain officers and directors violated federal securities laws in connection with various public statements, the company said.

Rainbow Technologies said no payments or other considerations were made to the plaintiffs.

Founded in 1984, Rainbow Technologies is a leading supplier of software-protection devices and encryption technology for personal computers. The company had $35.1 million in sales last year. Rainbow’s products are used by more than 10,000 software developers worldwide.

Rainbow’s stock closed at $13 Monday, down 12.5 cents a share.