According to the firm's 10-K filing dated 3/24/1999, in November 1997, the District Court dismissed this action and another action alleging similar claims. The Corporation has reached an agreement in principle to resolve all
claims in the class actions. The settlement is subject to the execution of
definitive documentation, notice to the class upon whose behalf the action was
brought, a fairness hearing, and approval by the Court of the settlement.
The original complaint charges that, during the Class Period, Westinghouse, certain of its officers and directors, certain of its subsidiaries, the underwriters for its May, 1991 public offering, and its auditor (Price Waterhouse), violated the federal securities laws, including Sections 10(b) and 20 of the Exchange Act and Rule 10b-5 of the Securities and Exchange Commission promulgated thereunder, by misrepresenting the financial condition of its subsidiaries, Westinghouse Credit Corp. and Westinghouse Financial Services, Inc. The Complaint alleges that these misrepresentations artificially inflated the market price of Westinghouse securities, thereby defrauding purchasers of those securities.