Robbins Umeda LLP Announces Investigation of NIC Inc.

Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at NIC Inc. (“NIC” or the “Company”) (NASDAQ: EGOV).  NIC provides eGovernment services, including Internet websites and applications, for accessing government information online and secure government payment processing solutions.  The Company operates in two segments: Portal Outsourcing and Software Services.  NIC was founded in 1991 and is based in Olathe, Kansas.

On August 5, 2010, NIC disclosed that the U.S. Securities & Exchange Commission (“SEC”) Division of Enforcement “is considering recommending that the SEC authorize a civil injunctive action against the Company and its officers alleging violations of various provisions of federal securities laws.”  This disclosure related to allegations that payments were made for the reimbursement of personal expenses, rather than business expenses, to Jeffrey S. Fraser – the Company’s former chairman and chief executive officer.  The ongoing SEC investigation, and the Company’s own internal review, indicates that this mismanagement and misappropriation has been occurring since at least 2004.  The Company’s statement also indicated that the SEC “believes that the Company and its Officers should have responded sooner and more completely to indications of potential misconduct by Mr. Fraser.”

Robbins Umeda LLP’s investigation concerns whether NIC’s Board of Directors and executive officers acted in accordance with their fiduciary duties by creating an adequate system of internal controls to detect and prevent this type of improper expense reimbursement.  Specifically, Robbins Umeda LLP is investigating whether the Company’s fiduciaries acted consistent with their duties by exercising proper monitoring over this system, if one existed, and over the Company in general.  Robbins Umeda’s investigation also concerns whether the Company’s officers and directors improperly delayed responding to potential misconduct by Mr. Fraser.

If you are a shareholder of the NIC, plan to continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at info@robbinsarroyo.com.

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