INTRUSION Provides Information Refuting Negative Claims in Recently Published Short Report

Rhea-AI Summary

INTRUSION (NASDAQ: INTZ) is facing legal challenges following a short report published on April 14, 2021, leading to investigations by law firms and a class action lawsuit filed on April 16. The lawsuit names the company’s CEO and CFO as defendants, reiterating allegations from the short report. INTRUSION firmly denies these claims, asserting they are baseless and plans to mount a robust defense. The company highlights its proprietary technology behind Shield, which is backed by patents and in early customer rollout with notable clients such as Kimberly-Clark and Lippert Components.

Positive

• The Shield application is protected by two existing patents and additional patents are pending.
• Shield leverages the TraceCop database to enhance its AI capabilities.
• INTRUSION is rolling out Shield with multi-year agreements from companies like Kimberly-Clark and Lippert Components.
• Shield has the necessary certifications for sale in all targeted jurisdictions.
• Shield is designed to proactively eliminate cyber threats rather than merely alerting users.

Negative

• The class action lawsuit and investigations may lead to reputational damage and financial liabilities.

PLANO, Texas, April 22, 2021 (GLOBE NEWSWIRE) -- INTRUSION, Inc. (NASDAQ: INTZ), a leading provider of cyberattack prevention solutions including Zero-Days, was the subject of a short report issued on April 14, 2021.

As a result of the publication of this short report, several law firms have announced purported investigations into INTRUSION, with one firm filing a class action suit in the Eastern District of Texas on April 16, 2021 naming the Company’s chief executive officer and chief financial officer as defendants. This suit primarily repeats the allegations set forth in the short report.

INTRUSION believes the claims in the lawsuit are utterly without merit and intends to defend itself vigorously.

At this time, INTRUSION wishes to offer the following facts in contradiction of the findings of the short report and the allegations contained in the lawsuit:

• INTRUSION Shield is protected by two patents on existing technology: 8,291,058 and 8,472,449. In addition, the Company filed additional patents for Shield on August 20, 2020 which are currently pending.
  
  
• The Shield application – including the logic for Shield’s high-speed packet capture; connection reassembly; traffic decoding and analysis; patented packet file system; patented accumulators for performance; and kill logic – is proprietary INTRUSION-developed software containing over 1.1 million lines of code. The Shield application runs on a standard server hardware platform. The platform is based on certain open-source technologies such as the Linux operating system and uses open-source databases and libraries for data storage and secure communication layers, which is very common in security appliances.
  
  
• Shield is separate and distinct from its INTRUSION TraceCop offering. Shield leverages the TraceCop database to train Shield’s AI engine and drive its accuracy.
  
  
• Shield is in the early stage of its customer rollout and various companies, including Kimberly-Clark, Lippert Components, NovaTech, and others have entered into multi-year agreements for Shield.
  
  
• INTRUSION has the required certifications to ship Shield to every jurisdiction where it is being sold.
  
  
• Shield is categorized as a Network Defense and Response (NDR) product designed to kill malicious connections on a network as opposed to creating alerts about suspicious traffic that tend to overwhelm IT departments and provide notifications often after damage is done to a company’s network and data.
  

About INTRUSION, Inc.

INTRUSION, Inc. (NASDAQ: INTZ) protects any-sized company by leveraging advanced threat intelligence with real-time artificial intelligence to kill cyberattacks as they occur – including zero-days. INTRUSION’s solution families include INTRUSION Shield, an advanced cyber-defense solution that kills cyberattacks in real-time using artificial intelligence (AI) and advanced cloud threat intelligence; INTRUSION TraceCop™ for identity discovery and disclosure; and INTRUSION Savant™ for network data mining and advanced persistent threat detection. For more information, please visit www.intrusion.com.

Cautionary Statement Regarding Forward Looking Information

This release may contain certain forward-looking statements, which reflect management's expectations regarding future events and operating performance and speak only as of the date hereof. These forward- looking statements involve a number of risks and uncertainties. These statements are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements, including, risks that we have detailed in the Company's most recent reports on Form 10-K and Form 10-Q, particularly under the heading “Risk Factors.” 

FAQ

What legal challenges is INTRUSION facing as of April 2021?

INTRUSION is facing a class action lawsuit and investigations following a short report published on April 14, 2021.

What is the significance of the short report for INTRUSION's stock?

The short report has led to a class action lawsuit that could negatively impact INTRUSION's reputation and stock performance.

What is INTRUSION's defense against the allegations in the lawsuit?

INTRUSION asserts that the claims in the lawsuit are without merit and plans to defend itself vigorously.

Who are the defendants in the INTRUSION class action lawsuit?

The lawsuit names INTRUSION's CEO and CFO as defendants.

What is the role of the Shield application in INTRUSION's offerings?

The Shield application is an advanced cyber-defense solution that uses AI to kill cyberattacks in real time.