The Citigroup settlement may have gotten all of the headlines, but last week was bookended by two other significant settlements.
i2 Technologies, Inc. (OTC: ITWO), a Dallas-based provider of closed-loop supply chain management solutions, announced on Monday the preliminary settlement of the securities class actions (and related derivative lawsuits) pending against the company in the N.D. of Tex. The original suit, first filed in March 2001, alleges that the company made false and misleading statements concerning the characteristics and implementation of certain software products. A second set of class actions were filed starting in April 2003 relating to the company's 2003 financial restatement.
The settlement is for $84.85 million ($43 million from the company's insurance carriers and $41.85 million from the company). Interestingly, i2 also announced that to help fund its portion of the settlement, "the company has entered into definitive agreements providing for the issuance and sale by i2 of $22 million of common stock to certain individual defendants in the lawsuits."
Raytheon Company (NYSE: RTN), a Massachusetts-based leading defense contractor, announced on Thursday the preliminary settlement of the securities class action pending against the company in the D. of Mass. The suit, originally filed in 1999 and about to go to trial, alleges that Raytheon made false and misleading statements concerning its financial performance.
The settlement is valued at $410 million (a cash payment of $210 million and warrants for Raytheon stock with a stipulated value of $200 million). Although Raytheon apparently has yet to reach an agreement with its insurance carriers, the company stated that it "expects to receive insurance proceeds of $75 million in connection with the settlement."Posted by Lyle Roberts at May 17, 2004 6:47 PM | TrackBack