Symbol Technologies (NYSE: SBL) has announced that its wholly-owned subsidiary, Telxon Corp., has entered into a preliminary settlement of the securities class action pending against the company in the N.D. of Ohio. The case was originally filed in 1998, prior to Symbol's acquisition of Telxon, and alleges that the company and certain former officers engaged in improper revenue recognition practices and hid adverse business and financial conditions. Telxon's motion to dismiss was denied in September 2000.
The settlement, which is subject to court approval, is for $37 million. Telxon's insurers are expected to pay $12 million of this sum. The company has brought a separate, but related, suit against its former auditors and has "agreed to pay to the class, under certain circumstances, up to $3 million of the proceeds of that lawsuit."Posted by Lyle Roberts at November 14, 2003 6:25 AM | TrackBack