Commtouch, a developer and provider of proprietary enterprise anti-spam solutions, has settled the shareholder class action lawsuit filed on behalf of shareholders against the company in early 2001.
The litigation was initiated against the company and two members of management in response to the company's announcement that it had decided to restate earnings for the first three quarters of 2000, alleging violations of the antifraud provisions of the Securities Exchange Act of 1934.
Judge William H. Alsup of the United States District Court for the Northern District of California, presiding over the litigation, recently signed a preliminary order confirming the settlement terms, which call for the payment of $15 million to shareholders who are members of the class by virtue of their shareholdings in the company during the class period (April 19, 2000 through February 13, 2001).
The settlement terms do not include any admission or finding of wrongdoing on the part of the company or individual defendants, who maintained their denials of improper behavior throughout the proceedings.
The settlement is being fully funded by Commtouch's Directors and Officers insurance policy.
Chairman of the Board of Commtouch Carolyn Chin commented: "We are relieved that this unfortunate episode is now behind us, and we can concentrate all of our attention on our anti-spam solutions—ASAP!—and the growth of the business. We very much appreciate all those who have stood by us during the difficult times."
Instructions for those who wish to participate in the shareholder class will be issued in due course.
Commtouch is headquartered in Netanya, Israel, and its subsidiary, Commtouch Inc., is based in Mountain View, California. The company was founded in 1991 and has been publicly traded since 1999. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
