LIDS is a standalone package that is not normally installed or included in most Linux distributions. The LIDS package is a kernel security patch that provides mandatory access controls for the system as well as an administration tool. The package can be used to tightly secure system access, including limiting the root user.
A previous security patch created this vulnerability, and while it may be difficult for a user to exploit, could completely compromise the security provided by LIDS. A system with LIDS installed is obviously concerned about restricting access, and should install the patch or upgrade for their Linux kernel immediately.
The test script provided by the LIDS organization could be used by attackers to develop a working exploit and begin scanning for vulnerable systems. This exploit can allow an attacker access to all files and possibly gain root privileges.