According to the firm's 10-K dated March 30, 2000, on June 3, 1999 the Company reached an agreement to settle the lawsuit by a payment to the plaintiff class of $12 million, all of which was funded by insurance proceeds. The court finally approved the settlement on November 19,1999.

The original lawsuit alleged that since at least September of 1995 through the end of the class period Itron and Humphreys fundamentally misrepresented the performance and technological capabilities of Itron's Genesis fixed network systems. In particular, defendants have failed to reveal the extent and nature of problems inhibiting Itron's encoder receiver transmitter modules from operating in real time with Itron's fixed network automatic meter reading technology. The complaint detailed the various technological problems inherent in the Itron devices which have prevented Itron from successfully operating advanced fixed network systems. Due to the pattern of misrepresentation during the class period, plaintiff and all of the purchasers of Itron common stock were defrauded into paying inflated prices for their stock.