According to a press release dated November 6, 2004, the company settled a class action securities litigation in 2001, pending against it and three of its former officers and directors. The settlement amount was for $6 million and fully and finally settled the claims of all parties named in the consolidated actions.
The original complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's financial results. As a result of these false and misleading statements the Company's stock traded at artificially inflated prices during the class period, trading as high as $18- 5/8 in February 2000. On March 6, 2000, FLIR admitted that its fourth quarter 1999 results would be much lower than previously forecast due to "accounting errors." At the same time, the Company announced the resignation of its Chief Financial Officer. On these shocking disclosures, the price of the stock dropped significantly, to as low as $9 per share.