According to the Company’s 10-K For The Fiscal Year Ended December 31, 1997, on March 6, 1998 the District Court issued a final order approving a settlement in the class action securities litigation, IN RE COMPUTRON SOFTWARE, INC. SECURITIES LITIGATION, Master File No. 96-1911 (AJL), brought against the Company and certain of its present and former officers and directors in the United States District Court for the District of New Jersey.
In a press release dated October 28, 1997, Computron Software, Inc., announced today, that subject to final documentation and approval of the court, a settlement has been reached with lead counsel representing the certified class in the class action securities litigation pending against the company and certain of its present and former officers and directors in the United States District Court of New Jersey. As its share of the settlement, the company will pay $1 million in cash, and an additional $5 million, which may be paid in the form of newly issued Computron common stock or, at the option of the company, in cash. The overall settlement includes consideration totaling $15 million for the benefit of class members, including the payment from the company, and payments from certain of its present and former officers and directors, its former auditors, and the insurance companies that provided Computron with directors and officers liability insurance. In return for the payments by the insurance companies, the settlement also resolves a separate lawsuit brought by the company against the insurance companies.
The consolidated amended class action complaint alleged the Computron Software had falsely portrayed the financial condition of Computron. The Complaint alleged these false portrayals were made in order to complete the IPO and allow certain of the Individual Defendants to profit by selling millions of dollars of Computron stock.