CyberDefender Corporation was originally incorporated as a software company in 2004. CyberDefender's stable of PC products includes MyCleanPC, MaxMySpeed and DoubleMySpeed. The company's original batch of programs also included the Registry Cleaner application, which was discontinued after being the focus of a 2011 class action lawsuit. Throughout the history of the company, CyberDefender has pursued an aggressive media marketing strategy that focuses on television and radio commercials.
Late night television watchers are probably familar with CyberDefender's well-advertised PC maintenance applications, including MyCleanPC and Registry Cleaner. From 2004 through 2011 the company developed from a software-only enterprise to a business model that includes both software and live technical support.
CyberDefender initially offered stock to the public in 2007. CyberDefender stock is traded on the NASDAQ market under symbol CYDE. The stock was initially priced at 20 cents per share, but prices quickly rose to the one to two dollar a share level by October 2007. The stock traded for more than four dollars a share from November 2009 through November 2010, at which point the price began plummeting and reached a low of 21 cents per share in September 2011. As of November 2011 the stock trades for 60 to 70 cents per share.
In 2009, CyberDefender shifted its corporate strategy away from being solely a software vendor with the introduction of the LiveTech service. LiveTech is a subscription service that provides computer users with real-time computer support. CyberDefender's revenues were almost immediately buoyed by this new service, as the service's $9.95 per month price tag contributed to the company's record annual revenues in fiscal year 2010. LiveTech accounted for 60 percent of these revenues, while the company's software sales accounted for the remaining 40 percent. In 2010, the company opened a 200 seat call center to help improve their live technical support infrastructure capabilities.
Class Action Lawsuit
In May, 2011 a class action lawsuit was filed in a Chicago-area court claiming that CyberDefender's software products were both ineffective for fixing problems and actually caused problems on many computers. An independent computer expert testified that the products slowed down most computers and made them crash more often. The lawsuit also indicated that CyberDefender did not honor the software's money-back guarantee policy. CyberDefender settled the lawsuit and paid out a total settlement of $9,750,000 to unhappy customers.
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