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<SEC-DOCUMENT>0001140361-05-007823.txt : 20050930
<SEC-HEADER>0001140361-05-007823.hdr.sgml : 20050930
<ACCEPTANCE-DATETIME>20050930171955
ACCESSION NUMBER:		0001140361-05-007823
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20050930
ITEM INFORMATION:		Unregistered Sales of Equity Securities
FILED AS OF DATE:		20050930
DATE AS OF CHANGE:		20050930

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CLEARONE COMMUNICATIONS INC
		CENTRAL INDEX KEY:			0000840715
		STANDARD INDUSTRIAL CLASSIFICATION:	RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
		IRS NUMBER:				870398877
		STATE OF INCORPORATION:			UT
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-17219
		FILM NUMBER:		051115049

	BUSINESS ADDRESS:	
		STREET 1:		1825 RESEARCH WAY
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84119
		BUSINESS PHONE:		8019757200

	MAIL ADDRESS:	
		STREET 1:		1825 RESEARCH WAY
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84119

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GENTNER COMMUNICATIONS CORP
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GENTNER ELECTRONICS CORP
		DATE OF NAME CHANGE:	19910808
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>body.htm
<DESCRIPTION>CLEARONC COMMUNICATIONS 8-K 09-30-2005
<TEXT>
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      ClearOnc Communications 8-K 09-30-2005
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
        AND EXCHANGE COMMISSION</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Washington,
        D.C. 20549</strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 18pt; FONT-FAMILY: Times New Roman"><strong>FORM
        8-K</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CURRENT
        REPORT </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>PURSUANT</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>TO
        SECTION 13 OR 15(D) OF</strong></font></div>
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        SECURITIES EXCHANGE ACT OF 1934</strong></font></div>
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        of
        report (Date of earliest event reported):</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
        September 30, 2005</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 24pt; FONT-FAMILY: Times New Roman"><strong><u>ClearOne
        Communications, Inc.</u></strong></font></div>
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              <td valign="top" width="50%">&#160;</td>
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                  Research Way,</strong></font></div>
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        975-7200</u></strong></font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Not
        applicable</u></strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Former
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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        the
        appropriate box below if the Form 8-K filing is intended to simultaneously
        satisfy the filing obligation of the registrant under any of the following
        provisions:</font></div>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font></div>
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                  communications pursuant to Rule 425 under the Securities Act (17
                  CFR
                  230.425)</font></div>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">o</font></div>
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              <td style="WIDTH: 72pt">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
                  3.02</strong></font></div>
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              <td>
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Unregistered
                  Sales of Equity Securities</strong></font></div>
              </td>
            </tr>

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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
        previously reported, on June 30, 2003, a consolidated complaint was filed
        against ClearOne Communications, Inc. (the &#8220;Company&#8221;), eight of its present or
        former officers and directors, and its former auditor by a class consisting
        of
        purchasers of the Company&#8217;s common stock during the period from April 17, 2001
        through January 15, 2003. The Company entered into a court approved settlement
        agreement with the class pursuant to which it agreed to pay the plaintiff
        class
        $5.0 million and issue it 1.2 million shares of the Company&#8217;s common stock. The
        settlement agreement and court order were amended in May 2005 to provide
        that
        odd-lot numbers of shares (99 or fewer shares) would not be issued from the
        settlement fund and claimants who would otherwise be entitled to 99 or fewer
        shares would be paid cash in lieu of such odd-lot numbers of shares.
</font></div>
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        September 29, 2005, the Company completed its obligations under the settlement
        agreement by issuing a total of 1,148,494 shares of its common stock to the
        plaintiff class (including 228,000 shares previously issued in November,
        2004)
        and paying an aggregate of $126,704.76 in cash in lieu of shares to those
        members of the class who would otherwise have been entitled to receive an
        odd-lot number of shares or who resided in states in which there was no
        exemption available for the issuance of the shares. The cash payments were
        calculated on the basis of $2.46 per share which was equal to the higher
        of (i)
        the closing price for the Company&#8217;s common stock as reported by the Pink Sheets
        on the business day prior to the date the shares were mailed, or (ii) the
        average closing price over the five trading days prior to such mailing date.
        </font></div>
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        shares were issued in reliance on the exemption from the registration
        requirements of the Securities Act of 1933, as amended (the &#8220;Securities Act&#8221;),
        provided by Section 3(a)(10) thereof and may be resold by the members of
        the
        plaintiff class without restriction under the Securities Act. In approving
        the
        settlement, the Court found that the settlement was in all respects fair,
        reasonable and adequate to and in the best interests of the lead plaintiffs,
        the
        settlement class and each of its members, the settlement was the result of
        arm&#8217;s
        length negotiations between experienced counsel, and the issuance of the
        shares
        should be without registration in reliance upon Section 3(a)(10) of the
        Securities Act. </font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
        to the requirements of the Securities Exchange Act of 1934, the registrant
        has
        duly caused this report to be signed on its behalf by the undersigned hereunto
        duly authorized.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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            <tr>
              <td align="justify" valign="top" width="50%">&#160;</td>
              <td align="justify" valign="top" width="50%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">CLEARONE
                  COMMUNICATIONS, INC.</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="50%">&#160;</td>
              <td align="justify" valign="top" width="50%">&#160;</td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="50%">&#160;</td>
              <td align="justify" valign="top" width="50%">&#160;</td>
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            <tr>
              <td align="justify" valign="top" width="50%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date:
                  September 30, 2005</font></div>
              </td>
              <td align="justify" valign="top" width="50%" style="BORDER-BOTTOM: medium none">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By:&#160;
                  <u>&#160;</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>/s/
                  Zeynep Hakimoglu</u></font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="50%">&#160;</td>
              <td align="justify" valign="top" width="50%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Zeynep
                  Hakimoglu</font></div>
              </td>
            </tr>
            <tr>
              <td align="justify" valign="top" width="50%">&#160;</td>
              <td align="justify" valign="top" width="50%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                  Executive Officer and
                  President</font></div>
              </td>
            </tr>

        </table>
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    </div>
    <div>&#160;</div>
    <div>
      <div>
        <hr style="COLOR: black" align="left" noshade size="2" width="100%">
      </div>
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